Crowdfunding has been around for some time now, and although it has been a hard time for some projects to gain funds, bitcoin could be the answer.
Let’s look at the root of the troubles and how crypto could potentially address them.
Crowdfunding is a practice where you can donate money – including cryptocurrencies such as Bitcoin, Litecoin, and more cryptocurrencies – to projects, associations or people to develop ideas.
It is a very powerful mechanism and tool for innovation and supporting social enterprises. Different platforms, such as Kickstarter and Indiegogo have not taken their foot off the brakes; the web 2.0 crowdfunding movement, which has led to the creation of several billion-dollar tech startups, like Oculus, and raised millions of dollars for thousands of causes, is ripe for development.
Crypto crowdfunding has the potential to be a network that connects people and their ideas.
Today, crowdfunding is dramatically narrowed by its reliance on legacy finance, which limits the vast majority of the world from accessing it. Although this is good in theory, and has worked thus far, the major issue is the reliance on the legacy financial infrastructure, that is not only costly but globally fragmented.
Most crowdfunding platforms are only found in 30 countries. To date, the costs of operating crowdfunding in this network are very high, due to the many mediating third parties involved.