Business Overview

Blockchain technology has given rise to a new digital currency: cryptocurrency. The most well-known cryptocurrency is Bitcoin, but there are hundreds of other “altcoin” cryptocurrencies. All of these cryptocurrencies are developed by cryptocurrency businesses.

The cryptocurrency marketing is young, yet it has a promising future. It’s been forecasted to reach as much as $1 trillion in 2018.

Who is this business right for?

Anyone who likes to be on the forefront of technology and isn’t afraid to experiment may be interested in creating a cryptocurrency. This is truly the frontier of technological currency and there’s still much to be discovered, so starting a business in the industry comes with inherent risk.

What happens during a typical day at a cryptocurrency business?

The activity at a cryptocurrency can be separated into pre- and post-launch. Before an initial coin offering, business owners spend time coding the coin and marketing it. Afterward, they focus on marketing it.

What is the target market?

Focusing on a community also provides businesses with a set group to market to. A targeted community can be almost any group, so long as it’s defined and has use for a peer-to-peer currency.

How does a cryptocurrency business make money?

Cryptocurrencies currently make most of their money through initial coin offerings (ICOs), which are akin to initial public offerings (IPOs) of stocks. An ICO can bring in a one-time influx of cash through the sale of coins. Afterward, any coins that a business itself has will hopefully gain value as the cryptocurrency becomes more popular and increases in value itself.

In the future, some cryptocurrency businesses will start to see more of their revenue come from transaction fees.

What is the growth potential for a cryptocurrency business?

Cryptocurrency businesses can grow to an immense size. Bitcoin has thus far been the most successful, once having a market capitalization of $835.69 billion. The cryptocurrencies value has been volatile and it no longer is as high, but this shows the potential that exists. Additionally, this was the value of all Bitcoins produced and not the value of the company that created Bitcoin.