New digital currencies and payment methods are revolutionizing the way companies do business in many important industries throughout the world. Blockchain and the new wave of Internet-based money, Cryptocurrencies, are influencing customers and affecting deals once considered routine.
A Blockchain is a digital ledger in which Bitcoin and other cryptocurrencies are recorded publicly and as they occur.
While your particular business or market may not yet be ready for a full conversion into digital currencies, now is the time to investigate how Bitcoin and others are being used and whether it could make sense for your industry and bring more potential for profit.
Businesses such as banks, hedge funds, advertising, real estate and apps have increased their usage of digital money because it is more transparent and, in some ways, easier to use than real money. Many industries such as government organizations, infrastructure and even law enforcement seem likely to join the Bitcoin bandwagon.
The current crypto-based industries accumulate wealth through the rapid growth afforded by an ICO (Initial Coin Offering) rather than through the traditional stock market-based IPO (Initial Public Offering). In ICOs, digital tokens over the Internet take the place of stocks on exchanges.
According to www.masterthecrypto.com website, by mid-2017, the total dollar amount raised in ICOs was an unbelievable $1,252,676, 352. The figure represents more than a billion dollars raised in little more than half a year. Cryptocurrencies have lured many traders wanting to get rich quick as well as expert business people.
ICO contributions this year have already surpassed the estimated $5.6 billion raise throughout all of 2017, according to www.Cryptoslate.com. This startling amount was possible in the face of a terrible stock market and some unease with these new methods of fundraising.
There is some controversy. Some executives worry about the lack of cybersecurity afforded by Bitcoin and the like because they are easy targets for hackers. Others are concerned that the crypto bubble will soon pop, just like the Internet bubble did in the early 2000s.
One very successful cryptocurrency, Ethereum, rose to the top rapidly but is now being challenged by the Mobius Network, which recently announced that it raised a whopping $39 million in its ICO.
Regardless of the particular currency, this technology-driven new method of payment is likely here to stay. These monies allow a new and quick method of raising capital and a better way to develop new business around decentralized applications. With IPOs, business people and investors usually have to wait years and sometimes decades for companies to mature enough to make one profitable. ICOs can occur at early stages of a business. Many of them haven’t even yet fully developed their product or service!
Global entrepreneur, professor and authorDr. James Nitit Mah identifies how business people can become more successful salesmen by following key principles of neuroplasticity and making vital and quick “brain connections” with prospective customers.
Cryptocurrencies lend themselves much better than dollars and cents to taking advantage of the rapid engagement with customers. So, many young businesses have adopted them to move their transactions along more quickly.
Dr. James Nitit Mah agrees with this in principle and maintains that marketers will be more successful if they understand the basics of the customer sensory theory, which bolsters quick connections with prospects.
He believes consumers must be sold without feeling that they are being unduly persuaded, because if a consumer believes that he/she has made the decision of his/her own free will, then they will have a positive feeling for that business. This will secure business over the long term with the customer.
Decentralization of funds allows businesses to increase profits sooner, manage sales more quickly and utilize Google Analytics for their branding much more efficiently.
This is just another example of branding experts having to adjust their strategies to the ever-changing ways that most people engage with brands. Events and products branders now must carefully consider the more ways than ever it is possible to conduct effective marketing.
Though you may not want to start an ICO right away, look carefully into Blockchain technology and discuss with your management partners other new ways to increase the speed and transparency of your customer transactions.