tech-company, business-model, funding, crowd-fundingI’d like to know if it’s possible to ask funding using crypto-currency.
Here is the site: http://posangel.com
Well there types of: How do fund with crypto-currencies:
#1: People give you cryptocurrency instead of money
Which iis basically just funding as usual because you then anyway convert it into real money. There is no point in doing this IMO. You could do that in any cryptocurrency.
#2: You do a Initial Coin Offering
To your first question: your own crypto currency. Yes, that is true. You fund your startup by doing this: You set up your own crypto currency (lots of code required) and distribute your coins in return of real money. People then go on and use the coins as cryptocurrency. Their value might increase significantly so they are interested in the coin in the first place. It is kind of a crownfunding meets crypto currency thing and can be very powerfull. The point is: If you have to ask about what crypto currency to use you will probably not be able to set one up.
So my advice is: get “real” funding unless you can set up a crypto currency yourself.
Side note 1: Lot’s of established financial institutions and governments are pretty pissed about this practice. There will probably be some laws on this in the near future which prevents you from “printing crypto money as you wish”.
Side note 2: The idea of printing your own money for funding isn’t even new. During the building of the Gotthard tunnel in switzerland the entrepreneur building the tunnel was nearly bankrupt and came up with the idea of printing his own money to pay his workers. He payed them in his own money which they could use to trade in the mining town so they could get food and other goods. When he had money again he changed his selfmade money for real state money and he avoided bankruptcy.
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