Since its inception in the early 2000s, crowdfunding has come a long way to the point where projects routinely raise tens of millions of dollars. Whether it be for a video game, an ICO, or anything else, crowdfunding has become a part of the modern economy.
There’s a lesson to be learned from crowdfunding in recent years, and that lesson is that Bitcoin and Blockchain are changing how projects can be funded. Whether or not a project is successful, there’s no denying it will lead to far more market-wide adoption of cryptocurrency technologies.
Bitcoin has been a digital currency since 2009, but it came into the spotlight in 2013. Since then, over US$1 billion of venture capital has been invested in the advancement of Blockchain technology – a database structure that supports Bitcoin – and its use-cases.
Blockchain removes the need for a central regulatory agency because it’s an open, distributed database that anyone can access. The database stores record about who owns what Bitcoins and tracks every transaction. Each time a transaction takes place, it needs to be verified by the collective efforts of all those using the currency before it can go through.
Bitcoin and Blockchain: A Match Made in Heaven
As far as most people are concerned, Bitcoin and Blockchain are synonymous. But the truth is, most people don’t know exactly what Bitcoin is. The majority of people know it as a currency, similar to a fiat currency, which isn’t wholly accurate. The reason for this inaccuracy is likely because, for many, the first application for Bitcoin was to purchase goods online. Since then, it’s developed into something more, but it also needs Blockchain technology to work.
There are other cryptocurrencies that don’t need Blockchain technology to work, such as Ripple or Ethereum – yet, putting the two together will be an exciting approach for developers looking to corner the market on different currencies.
Crowdfunding Bitcoin Mining
When you don’t know anything about Bitcoin, crowdfunding bitcoin mining allows you to make a good profit. It’s not the only niche out there, but it will be necessary for the future of finance. Crowdfunding mining bitcoin isn’t a perfect way to make money, but it’s an interesting market to get into due to its future potential.
The current market for crowdfunding bitcoin mining is growing at an annual rate of about 50 percent, but that won’t last forever. It will eventually plateau because the total number of Bitcoins in existence will begin to approach the maximum supply of 21 million. This will likely happen by 2040, but still, mining bitcoin isn’t an excellent investment.
If you want to put your money into something likely to go up in value over time, this may be worth considering, but nothing is guaranteed.
Blockchain and Bitcoin are still very much in their infancy, but this will change soon. In the early part of 2016, there was a nine-fold increase in cryptocurrency jobs. These figures should give you an idea of what’s going to come.
What Is Blockchain?
It may appear complicated, but Blockchain is a relatively simple concept. It’s a shared database that stores information about all transactions on a network or chain. There’s no central computer or single authority that needs to be trusted with the data. Instead, every full participant can access it and view it at any time without a revision.
An example of a Blockchain project to keep an eye on is the OpenLedger Dex Exchange. The OpenLedger Dex Exchange is one of the most successful Blockchain projects to date, with over US$30 million in funding.
The London-based Blockchain company, which launched last year, is already making waves in the global startup scene. It focuses on digital currency exchanges and blockchain-related consumer products.
An openledger dex exchange allows you to make a good profit even if you don’t know anything about Bitcoin.
What Is a Cryptocurrency Crowdfunding Campaign?
This is a funding model where funds are being raised through cryptocurrency digital currency and the Blockchain.
In a traditional crowdfunding campaign, money is exchanged for a project or product. In cryptocurrency crowdfunding campaigns, investors profit from an increase in the value of the cryptocurrency used to fund it.
Crypto token crowdfunding allows new cryptocurrency projects to be funded by ordinary people without any financial knowledge. The investors don’t need to worry about anything except giving the cryptocurrencies that they hold some value.
The traditional crowdfunding model has been around for many, many years now. Campaigns are typically Kickstarter or Indiegogo style, where people who believe in an idea can pledge money towards it in return for some reward.
There have been around 35 ICOs (Initial Coin Offerings) launched since 2013 according to data gathered from Tokendata.
Understanding the Crypto Token Crowdfunding Model
Crypto token crowdfunding campaigns work differently from the traditional method. With this model, you don’t need to give money to a company or cause – instead, you invest in a cryptocurrency. Everyone who invests is awarded some tokens and can then use these tokens to fund and support projects and causes.
Why Is Bitcoin and Blockchain the Future of Crowdfunding?
Bitcoin and Blockchain technology can disrupt several industries. Cryptocurrency crowdfunding campaigns could completely transform each industry.
To give you an idea of how significant cryptocurrency crowdfunding campaigns could be, in 2014, two startups called Augmentors and AriseBank raised over US$600,000 in funding through a cryptocurrency crowdfunding campaign. This funding helped fuel their growth in size and scope in less than one year. This project is well underway, but it could only have been possible using the ease of use offered by Cryptocurrency and Blockchain technology.
Even more recently, in 2017, BnkToTheFuture raised US$28 million back in December, roughly ten times its initial crowdfunding campaign goals. This is an outstanding example of how cryptocurrency crowdfunding campaigns unlock growth for businesses that are already well underway.
Real-world businesses are implementing cryptocurrency and Blockchain technology because they believe it’s the future of finance. The integration of cryptocurrencies and Blockchain technology will be one of the most disruptive things to come to the finance industry since Bitcoin’s creation. It’s only a matter of time before many companies adopt this new technology, even if they’re not crypto startups today.
Real estate has also adopted crowdfunding into their models. Some of the best real estate crowdfunding for non-accredited investors include Community Property, First Community, Fundrise, Fundrise Invest Only Crowdfund – FDIC insured.
With the advent of blockchain technology and cryptocurrency crowdfunding, you can finally invest in real estate without needing to know anything about property-related finances or running a business.
It’s wonderful to see the cryptocurrency and Blockchain phenomenon grow over the last few years, and what’s even more impressive is that we’re just starting to see some real significant projects come about as a direct result of cryptocurrency crowdfunding. At one point, nearly everyone was skeptical and dismissive of Bitcoin and Blockchain and their potential. But it’s been great to see this rapid evolution from something that’s been looked down on as a “fad,” to something that people are taking very seriously.
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