Booming Cryptocurrency Market and Blockchain Startups in Latin America

The statistics of investors showing interest in investing in cryptocurrency is high in the past few years. Cryptocurrencies gaining a handful of popularity among new investors can play havoc with several top-level industries. At the same time, not all investors seem to be enthusiastic; some are still a little hesitant to invest in.

Investing in cryptocurrencies created an easier way of raising funds for businesses through initial coin offerings (ICOs). This takes a great hit on venture capitalists and holds them from initiating startup investments. In 2017, ICOs have delivered a capital to blockchain startups 3.5 times more than what venture capitalists have invested. It clearly states that startups need not depend on venture capitalists and worry about secure funding.

In emerging markets, nothing is better than investing in cryptocurrencies in startups. Moreover, it is a venture capitalist who gains more benefits to investing in startups. The need for fundraising seemed to be mandated for places like Latin America because they have had such a condition. Investing in cryptocurrencies through the Bitcoin Revolution can be a perfect way to fill the gap.

Here are some important reasons you cannot deny investing cryptocurrencies in blockchain startups:

The Silicon Valley model did not show great results in Latin America

When we talk about how cryptocurrency can help startups in hard times, we should also talk about what created the necessity of investing in cryptocurrency. Venture capital restricts the scope of investment for most of the companies since it has a big hand behind driving the Silicon Valley model, a 60-year traditional method. It follows the economic theory of clustering within a limited circle.

Irrespective of any investment ideas or new ventures, it was always shared between investors, companies, and universities together within limited geographical proximity to realize all financial and other benefits yielded from the collection of ideas. And the entire process was controlled by venture capitalists.

Acquiring/raising capital in Latin America is quite difficult because of its lower-income level. Also, you cannot find more firms of venture capitalists and even not enough support received from the government as well. The Silicon Valley model may not work out in Latin America because it takes its own sweet time to replicate. With its lower economic reasons also being on top of the list, the region cannot take a chance to keep hold of its breath until they see some fruitful results through VC.

As we have technology-induced everywhere in the world, it is now possible to take online classes and share knowledge about anything one would like to achieve. Even investment and starting business is also a kind of support that people across the world can receive online. You can make your first-time investment without depending on any physical advice or manual help. The same rule applies to VC as well for realizing investing in cryptocurrencies in Latin America, is a great place, to begin with.

Cryptocurrencies can equal up startup investments in Latin America

As a high-end funding method, ICOs has a lot to support startup companies. Venture capital can be a secured method but cannot get things to happen on time, especially for startups that too in Latin America. Cryptocurrencies can be a great alternative to endeavour and meet new entrepreneur's capital needs.

In the United States, a smart certified investor will want to invest in startups through ICOs. Be the amount be small or big, you will never be questioned for investing and is extended to everyone. This provides remarkable access to the capital amount needed to develop your business.

It also allows venturing capitalists to observe and estimate how the idea of ICOs has been accepted and realized by blockchain startups in Latin America. As the profit/loss is known very soon here, VC can easily gauge whether it will win or fail. Since cryptocurrency investment is not only for startup businesses but also for common investors like you and me as well.

Cryptocurrencies offer more liquid investment options to Latin American investors

Cryptocurrencies support not only the growth of startups but also act as a guide for investments. Like how less the scope for startup investments in Latin America, the less the scope for investment as well. Many regions in Latin America are still back laid in terms of meeting the required GDP. It is 40% less in value to meet the GDP, whereas the United States comes close to 140% of its GDP.

Investing in cryptocurrencies enables a new way for investors to liquidate their investments in no time and regain their capital. Whenever you find a cryptocurrency project is being launched, it appears to investors 24/7, providing them the option to sell off their stakes in any company of their wish.

This works great for VCs because they can anytime leverage their cryptocurrency investments to access more liquid investment opportunities along with other investments too.

Do you know that blockchain and smart contracts can easily combat corruption and weak central institutions? However, cryptocurrencies show a promising change and help hand to blockchain startups in Latin America; it also gives hope to investments that need a push to see more profits.