Bitcoin is at an inflection point. The leading cryptocurrency by market capitalization has been on a tear this year, more than doubling in 2020 alone. From big institutional investors to everyday retail traders, Bitcoin is now on the radar of mainstream investors.
This newfound interest in Bitcoin has led to a surge in demand for cryptocurrency-related products and services. Startups are racing to meet this demand, with new businesses popping up left and right to capitalise on Bitcoin’s inflection point.
Here are seven ways startups are harnessing Bitcoin’s inflection point:
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Bitcoin is being used as a hedge against traditional investments
Bitcoin, the world’s first and most popular digital currency, is experiencing a tremendous growth. The surge of bitcoin price has been linked to the European Union’s continuing debt crisis. But the trend of bitcoin use among startups is also worth exploring at this point.
Bitcoin, which is not backed by any country’s central bank and has no tangible value against fiat currencies, has really had its own place in the market over the last few months because of its stability as an investment vehicle.
Bitcoin’s price has fluctuated wildly in the recent past because the market has little to zero certainty about how the global economy will evolve. In recent years, bitcoin has been adopted as an investment by startups at its inflection point, who see it as a hedge against traditional investments and currencies in developing countries like Venezuela and Zimbabwe.
Bitcoin is being used to raise capital
Bitcoin is at it’s inflection point and an increasing number of startups are using it to raise capital. There are many advantages to using bitcoin as a form of investment and an increasing number of companies are tapping into this new potential.
Bitcoin is fast, borderless, and democratic – three qualities that make it a great tool for raising funds. It’s also more cost-effective than most other forms of payment processing, which means that startups can save money on transaction fees by accepting bitcoin though bots like Bitcoin Code.
The cryptocurrency has been doing well in recent months and that trend seems set to continue for the foreseeable future – even if the market does crash again at some point in the near future.
Tapping into the new form of currency will be a good move for any startup looking for capital in 2022 or beyond.
Bitcoin is being used to pay employees
A growing number of startups are paying their employees partly in bitcoins. The advantages for the employee include getting to experiment with a new type of currency and avoiding both foreign exchange and tax hassles.
In recent years, a rising number of companies have been paying salaries in Bitcoin. When individuals are paid in Bitcoin, they also avoid foreign exchange and tax hassles because its value does not change if they convert it to fiat currencies like USD or EUR. They can also experiment with different types of crypto-currencies if they so choose to do so.
Bitcoin is used by businesses as a means for remuneration. Bitcoin offers them the opportunity to get rid of their dependency from banks and governments, while still being able to pay employees without having to worry about any foreign exchange issues or taxes.
Bitcoin is being used to pay contractors
Bitcoin is being used by startups to pay contractors for their work.
Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently and outside a central banking system.
Many companies that have resorted to the use of Bitcoin for their payment systems, have found that this strategy can lead to increased revenue in the long run.
Bitcoin is being used to trade on exchanges
As bitcoin’s inflection point approaches, more and more startups are using bitcoin to trade on exchanges. Bitcoin is on the verge of becoming a mainstream asset, and as its price continues to rise, it will likely become an important grant for future startups.
In a recent interview with CNBC, the founder of Coinbase, Brian Armstrong explained how he predicts that bitcoin will continue to grow in value over the next 5 years at a steady pace. He also predicts that in the near future, traders from all over the world will be able to use bitcoin as their primary currency for executing trades on exchanges.
Bitcoin is still waiting for its inflection point; however it has already reached many important milestones and has made significant progress towards becoming a mainstream asset class.
Bitcoin is being used to buy goods and services
Bitcoin was created as an alternative to other forms of money and can be used to buy goods and services from online stores.
It’s decentralised, meaning that it doesn’t rely on banks for the facilitation of trades. Bitcoin can be generated through mining or by trading it for products or services with somebody who already has bitcoin.
The big advantage of bitcoin for startups is its low transaction costs. With bitcoin, startups don’t have to worry about the potential financial strain incurred by high credit card processing fees and interchange rates in the case of international transactions. This makes bitcoin very attractive for developers looking to launch their next product quickly and cheaply without having to spend time integrating payment gateways.
Summing it up!
This article looks at how startups are using Bitcoin’s inflection point to their advantage. Bitcoin is on the rise, and startups are taking advantage of its potential. This article provides a few examples of how startups are using Bitcoin to their benefit. If you’re looking to get into the Bitcoin game, this is a great place to start.