Friday, 8 December 2017

Icos Can Definitely Become A Great Long Term Investment

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?

ICOs have been fuming in the recent times and there are a lot of people trying to explain how the system works. Well, most of the blogs provide you with a lot of technical terms, which become difficult to understand for the regular people. When you arrive at these situations, it is always better to consult with the individuals that have proper experience about investing in the ICOs.

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.

Bitcoins recently made a huge jump in the financial world and its value increased from nowhere to being around 11000$. It is likely one of the most popular ICOs known today and of course the most successful token system. Bitcoin or any other cryptocurrency that you come across works on a principle of the blockchain technology. It is a simple process, where the cryptographic data or information is stored in blocks; it contains all the information about any transaction made using the Bitcoins.

The Security and Exchange commission have been looking into such investments to ensure they are safe. There are digital currencies that do not really have the need of any regulatory organisation, as there is no tangible proof for it and it protects the issuer and the investor. But there are cases when cryptocurrencies are known to get under the supervision of law.

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.

The value of the digital coins or tokens increases as the company becomes successful with time. The market value for the coins keeps increasing as more and more people look to invest in company to invest in their services and products. You do need to consider the fact that the digital currencies or ICOs do not provide you with actual ownership of the firm.

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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