When we think of the term Startup we tend to think of businesses in Silicon Valley with tech as the mainstay of their businesses! Startups can actually be anywhere and involve all kinds of industries. Some of them will have already embraced cryptocurrencies, but others may not have caught on. People who have that entrepreneurial drive constantly seek fresh ways to stand out, and one of the most intriguing developments is cryptocurrency. What started as an experiment in digital money has grown into a force that could change industries, including startups. But how can cryptocurrency influence startups?
Accepting Cryptocurrency as Payment
This is one of the first things people will think of when they consider how startups are impacted by crypto – are these currencies available to use as a method of payment?
Cryptocurrency is increasingly accepted as a form of payment, and startups are taking note. By offering customers the option to pay with digital currencies, startups can tap into the growing market of crypto enthusiasts. This is especially beneficial for tech-focused businesses.
We’ve already seen some industries prove that accepting cryptocurrency can also help startups expand their customer base globally. Traditional payment methods sometimes come with high fees and poor exchange rates. Customers will eventually rebel against this if given a better option, and crypto may be that option.
With lower fees and faster payments, the casino industry has already embraced cryptocurrencies and many casinos allow people to play their games using Bitcoin. A crypto casino online is seen by many as a more secure way to move money and it also has a lot of different games including table and slot games.
As in the gambling industry startups embracing cryptocurrency as a payment method can benefit from the buzz generated by being early adopters. More casino transactions are thought to take place using Bitcoin than in any other industry, and in a competitive market, this differentiation of allowing new ways to pay can make a significant impact.
ICO Funding
Cryptocurrency has impacted startups through Initial Coin Offerings (ICOs). What does this mean? Well, an ICO is a fundraising method where startups raise capital by issuing digital tokens in exchange for established cryptocurrencies like Bitcoin. It’s similar to an Initial Public Offering (IPO) in traditional finance but cuts out the unwanted middlemen and intermediaries like banks or VC firms.
ICOs have opened new doors for startups, especially those struggling to secure funding through conventional means. By tapping into the global cryptocurrency community, entrepreneurs can raise significant money quickly. This democratization of funding allows anyone with a solid idea and a sharp pitch to try to access the capital needed to make it happen. ICOs aren’t a universal option and not all businesses have something to offer in return. There are examples of it being successful, though. It is little wonder that a lot of businesses think about this as a way to generate the revenue they need.
DeFi is a Huge Startup Trend
VC funding in cryptocurrency startups alone has hit the billion-dollar mark per month. That’s a lot of focus on this specific industry and people with new and fresh ideas might even want to start their own DeFi business.
DeFi encompasses financial services and products that operate without traditional banks. Instead, they rely on blockchain to enable peer-to-peer transactions and smart contracts—self-executing agreements with terms written into code.
Entrepreneurs are also already exploring all of the different ways that businesses can offer things like loans and other services without intermediaries. This not only slashes costs but also increases accessibility.
DeFi also inspires new business models. Some startups build platforms allowing users to lend and borrow cryptocurrency, earning interest on their holdings. Others create decentralized exchanges where users trade digital assets directly, bypassing traditional exchanges.
The DeFi market is on the up and is predicted to continue to grow into the coming years. Many successful businesses have launched providing their own services to the industry, too. Bitcoin led the way and provided a blueprint for some businesses. It also opened VC's eyes to the fact that there could be investment opportunities in the field. Like when we had a boom of social media companies launching in the 2000s we now have a similar thing happening in the world of cryptocurrency and decentralized finance methods.
Conclusion
Every business needs to think about the ways customers want to pay. Small businesses may not have such a focus on crypto, somebody running a market stall might decide that crypto is not high on their agenda and most customers might prefer to pay with cash or card. Startup businesses that are looking to maintain a global strategy should definitely consider cryptocurrency and so should those aiming their product or service at a savvy marketplace like tech. Not only is crypto an industry in itself, it is having an impact on many other industries.
