How are young entrepreneurs earning millions through bitcoin?
Cryptocurrencies have become a new trend in the financial market. Today, more and more youngsters are showing their interest in the cryptocurrency trade market. There is a massive debate on whether Cryptocurrency will be the future currency or not. And without any decisive conclusion, people are afraid of losing their investment.
However, youngsters are showing their interest in the new form of currency and want to explore the land. It has made them one of the largest groups of investors.
How are young entrepreneurs making money with bitcoin?
There are many ways by which entrepreneurs are using to earn money. And among all the methods, the most popular way to make money from Bitcoin is the Initial coin offering (ICOs).
Initial coin offering has become the primary source of investment to build dApp or launch a new coin.
What is ICOs?
The initial coin offering is a crypto industry that is dependent on the crypto investment. This practice helps to raise funds for any business. Once you have a groundwork plan, you can attract Crypto investors and traders and ask them to invest in your idea. And while doing so, the company will give the ownership of their shares.
How does initial coin offer works?
When there is a cryptocurrency startup, and businesses need to raise funds, they create a white paper with all the information engraved. It is where young entrepreneurs come into action. For young entrepreneurs, this is a golden opportunity to invest in profitable businesses to make a profit.
With this activity, entrepreneurs are given with the ownership of the shares that they have bought with ICOs. And the best part of the ICOs is that investors hold the key to the crypto token. So, if the minimum fund requirement is not met, the ICO is considered a failure, and the investors get their investment back.
However, you must know that the initial coin offering is not regulated. But if there are any security and exchange issues, the SEC (Security and Exchange Commission) can intervene in the process.
Ethereum: the crowdfunding machine
The concept of the initial coin offering has come into existence with the help of the Ethereum blockchain network. And one of the most used applications of the Ethereum blockchain network is the smart contracts.
These smart contracts are digital contracts that are coded with instruction and condition. And one of these conditions is met; the contract implements itself.
This invention was so impactful that it left a noticeable mark on the crypto trade market.
The journey of the smart contracts and ICOs started with the DAO. DAO is a distributed investment company with over $100 million. The investors were given Ether DAO tokens in exchange for their investment.
The investors were also granted ownership of their shares and were allowed to participate in the DAO’s governance.
Later on, the DAO company was hacked, and its own business crumbled. However, this business module becomes the first step for the next generation of ICOs based businesses.
Pros of ICOs
ICOs have many things to offer to the new generation entrepreneurs. And you may take this possibility why young entrepreneurs are investing Bitcoins and other cryptocurrencies.
- The best part of the ICOs is that there is hardly any paperwork compared to the Initial public offering. You need a good quality ICO white paper.
- ICO is related to a community that helps the investor with easy and efficient investing processes.
- You do not have to be a prominent investor; you can even invest for just a fraction of the shares and still hold the ownerships of their shares.
Cons of ICOs
No matter how efficient and secure Initial coin offerings are, there is always something that you need to be careful of.
- Remember how I said that it is advantageous that ICO has less paperwork. Well, it can act as a double-edged sword. There has been a scammer who has used this opportunity to make some quick bucks.
- Investing in ICO does not mean that you are investing in the business itself. Instead, you are investing in the idea.
Conclusion
Initial coin offering has always been a hot topic in the trade market. I hope that I was able to throw some light on the ICOs and how young entrepreneurs were able to make millions out of it. To know more, visit icorating.com.
