Tuesday, 12 December 2017

Understanding The Benefits Of Investing In Icos

By Alxa Robin


Talks about ICOs have increased over the years, well of course the recent profits with the investment in the digital currency world, such as Bitcoins have added to why it is a great way to earn money. There are a lot of companies that have made a lot of money with the help of the Initial Coin offering strategy. There are thousands of people that believe it to have a great future and thus they are investing on it on a regular basis. However, there are individuals that are not completely aware of what ICOs is and why is the hype?

You must have heard about IPOs, it was a process started by companies to get the initial investment for the capital investment. They would simply offer people stakes of the company, shares or stocks of the firm in return of the investment that they made. Although this process was beneficial, companies still had to be in debt of the investors and often dilute the position of the executives or employees and son. However, with ICOs, instead of offering the investor with shares and stocks, they are given digital coins in return, which are also known as tokens.

You also need to understand that fact that a majority of the currencies do not have an intrinsic value (which is found in case of gold or silver). However they do possess a market value at which they can be purchased. A majority of the tokens or digital currencies that are offered to you allow you to get discounts in the purchase of products and services offered by the company issuing the cryptocurrency. This simply makes the tokens a kind of coupons or discount offers for the investor.

One of the most important aspects of choosing to invest in ICOs is that these digital currencies are not really regulated by any secured authority or centralized organisation and it is not in control of any such organisation. However, the modern day concern of people is that whether or not these ICOs are a valuable investment or just a scam.

As the founders of Bitcoins released their mining software as an open source, there are individuals that using their computer power and internet access keep a track of the transactions. Such individuals are known as miners and the process of collecting data in blockchain is called mining.

Even tech companies have realised the value of digital currencies, they offer as an investment. The digital coins otherwise also known as cryptocurrencies are released by companies at a discounted rate just before the start of the company. The ideology behind the use of ICOs is making people aware about the company's goals and policies they are willing to follow, people that connect with the idea look to invest in their idea by investing in the ICOs released by them.

Mining is a very important part of the Bitcoins blockchain technology and the Bitcoins provided to the miners are a bonus for their mining. There are digital currencies being built that was to overcome the issues found in Bitcoins, such as Litecoins, Ethereum, and so on. These coins where built over Bitcoin blockchain technology.

Bitcoins is decentralized and thus it has no authority above it that authorizes the transactions made with it. Thus, it eliminates the need of having a mediator to make any transaction, neither a financial organisation nor a bank.




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