Ethereum has tremendous investment potential, yet is distinct from traditional vehicles such as stocks, bonds or Individual Retirement Accounts. Small and large investments made by participants have provided at least $1 billion which powers the Ethereum blockchain so far, and those that invest will usually start by acquiring ether, which is its currency.
Ethereum investors and entrepreneurs are individuals who have placed capital in the Ethereum protocol. This funding has allowed the platform to receive steady improvements which build on the blockchain foundation, which is the technology that powers Bitcoin. Ethereum shares many similarities with Bitcoin but is far more versatile, encouraging investors from all walks of life to fund its development.
Entrepreneurs use Ethereum to launch businesses via crowdsales or crowdfunding. It allows them to receive the necessary capital from the public directly through the web, without having to rely on traditional banks or lenders. This has revolutionized the marketplace because it allows people with drive, talent and great ideas who are lacking the necessary funding to get it from people who are not only interested in their ideas, but who can benefit from seeing those ideas realized.
The strongest advantage of Ethereum and blockchain in general is its security and accountability. The platform is decentralized and structured in such a way where the funds of those who participate are protected from fraud and malfeasance. Entrepreneurs who are given funds by investors must first prove that they are making progress in the development of their projects, or the flow of capital can be severed.
Furthermore, Ethereum allows for the phenomenon referred to as ICO, or Initial Coin Offering. It is the digital equivalent of an IPO, or Initial Public Offering, where traditional companies would issue stock to the public in order to raise capital. The main difference between an IPO and ICO is that ICOs are conducted digitally over the web, using Etherum as the platform. This platform is so effective for this task that it is now being used for more than fifty percent of ICOs performed worldwide. These events are important as they allow investors to receive tokens and other perks for contributing financially to a project.
This technology is still in its infancy and as such is subject to varying degrees of volatility. But the success of Bitcoin and cryptocurrencies in general is proof that this technology is here to stay and that those who invest now may receive spectacular returns in the future.
At Blockchain developers we specialize in Etherum and other forms of blockchain technology. We can assist entrepreneurs in establishing an ICO that will grab the public’s attention and create the excitement that is needed to generate the necessary capital to complete projects and launch services. This creates a winning situation where investors will receive a nice return on their investment while entrepreneurs get the funding to realize their ambitions, dreams and goals.