The conventional way of doing things in finance is slowly fading with the growing demand for ICOs. Initially investors would trade money for securities in the companies they funded but cryptos are in to disrupt this norm with their tokens and coins. Cryptos are becoming popular amongst investors as it allows them to take part with ease in lucrative international deals that would otherwise be slow and complex with IPOs and regulatory agencies involved in increasing costs.
Between January and July 2018 alone ICOs have raised $16.9 billion worth in cryptocurrencies. This is how much investors have placed confidence in cryptos despite their volatility. A number of governments have acknowledged Bitcoins as legal tender with Japan joining the bandwagon in early April this year.
As a matter of fact, the largest Bank in Japan trades in Bitcoin. However, Bitcoins are “virtual goods” according to the Chinese government. The CEO of the Chinese Bitcoin exchange BTCC, Bobby Lee acknowledges that cryptos need to be regulated to protect investors.
Widespread Support
Cryptocurrencies are making entry into finance with Microsoft and Paypal. Intuit among several other mainstream companies are accepting transactions in Bitcoins as well. Investors are also finding it easy to transact in cryptocurrencies as they are easily transferable across borders.
Individuals seeking anonymity and privacy that cannot be granted by existing financial institutions also have refuge in cryptos. Cryptocurrencies were initially a solution to places with inefficient banking systems but, in developed countries they complement local banks. Investors can however, carry out transactions with 3rd party national banks out of the picture.
Digital assets are becoming popular investment tools as well, despite the fall in price recently Wall Street strategist Tom Lee speculates that by 2020 a single Bitcoin could be going for $91,000.