Venture capital firms have been in the process of putting millions of dollars into startup companies that use blockchain technology to their benefit. Those attempting to make money off of the cryptocurrency industry are notably receiving the most funding as of recent.
Interest in cryptocurrency is rising as popularity of digital money rises accordingly. With the use of initial coin offerings or ICOs, many companies have received funding they otherwise wouldn’t. This type of crowdsourcing, using coins given out by the company instead of a traditional stock. These firms are on the track to make an incredible amount of me.
Venture capital funding has been outdone by that of initial coin offering in terms of monetary funding this year. Several venture capital funds have turned their business models into using cryptocurrency instead of traditional fiat currencies.
Trends have become clearer as VC’s have worked on making this tradition including using different platforms such as Coinbase or other exchange platforms. One top VC fund, PolyChain capital has worked on using this new form of funding known as crowdfunding in their platform.
Some of the largest names in the venture capital industry have begun to make this switch as they see their is a larger profit to be made in the industry of cryptocurrency over others.
Cryptocurrency has a large amount of consumer appeal. Using blockchain as the primary source behind its inception, cryptocurrency remains completely anonymous, while not needing a middle-man to work in between the consumer and the company. With blockchain technology, all that is needed is the two parties involved, wherein the data is then verified through a series of computers that share the blockchain network. This decentralization and anonymity is what draws in an increasing number, people to use bitcoin and blockchain over traditional forms of cash.