Living in Hopes with a Bitcoin Dream
With so much hype about Bitcoins and Cryptocurrencies, it is had to imagine that anyone does not know what a BitCoin is, or at least have heard about it at some point in time. If like many people you are wondering how you could “Cash in” on this boom, you will need to continue dreaming for a while longer yet. Investing in Bitcoins is a very risky business for those just starting out. If you were an even bigger dreamer and was considering starting your own “Bitcoin” equivalent dream on!
An Initial Coin Offering (ICO) is the cryptocurrency worlds rough equivalent to an IPO in the mainstream investment world. ICOs act as the pre-launch fundraiser event of sorts.
Basically, a Bitcoin new startup company looking to create a new coin, app, or service initiates a launch plan for an ICO. Next, he has to get the news out to possible interested investors who could be interested in getting in at the beginning to buy into the offering. The other consideration is what method of payment would you be willing to accept to get going. You could either accept fiat currency or some of the preexisting digital tokens like ether. In exchange for their initial support, investors would receive the new cryptocurrency token specific to the ICO you were starting.
The dream for the Investors
The company holding the ICO uses the investor funds as a means of furthering its goals, launching its product, or starting its digital currency.
ICOs are used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks.