Tech companies are widely known to be some of the most innovative, fast moving businesses in the world, often being responsible for creating some of the most useful technologies in modern times.
With technological development processes advancing at an incredibly fast rate, businesses are constantly looking for new ways to revolutionise their operations and help them grow. Here are some of the ways cryptocurrencies (like bitcoin) could help them achieve this.
Payment
First and foremost, cryptocurrencies have been touted as one of the next big things in terms of payment systems. Some businesses have started accepting bitcoin as payment for their product/service, which can certainly be handy for tax purposes, as well as avoiding the exchange rate fees for overseas transactions.
Cryptocurrencies are, however, also well known for the volatility and lack of regulation, so their value can swing up and down heavily. This means that any startup considering accepting bitcoin payments should be well aware of the risks and manage them accordingly (by only accepting a certain amount per month, for instance).
ICOs
Perhaps one of the more controversial uses for cryptocurrencies is ICOs, or Initial Coin Offerings. Similar to Initial Public Offerings, ICOs involve a startup raising funds for its operations by offering ‘tokens’ of cryptocurrency (instead of shares) to their supporters in return for money.
These tokens can then be used to buy something back from the business at a later date (shares, products etc.) once it is fully operational. Again, there are risks involved with this, so it may be worth using a specialist financial service (especially one backed by expert investment advisors such as Wellington Management Funds) to get a clearer understanding of the benefits and risks.
Developing New Cryptocurrencies
Some tech savvy minds may also see the cryptocurrency boom as an opportunity to potentially develop their own cryptocurrency. Ripple and ethereum are two of the most popular cryptocurrencies after bitcoin, and they were also developed fairly recently.
Now that the technology behind bitcoin is better understood, it can be harnessed by entrepreneurs to create their very own cryptocurrencies, and it is likely that more and more will be appearing in the near future after having been developed by tech companies.
Cryptocurrencies have, ultimately, begun to change the game for tech companies. Whilst new uses are constantly being found for them along with the technology behind them, it is likely that so far the surface of their potential has only just been scratched, meaning an exciting future awaits for tech companies across the world.
