2019 has seen some of the major tech firms listing their IPOs valuing into billions, be it UBER, LYFT or Pinterest, all have made big headlines with their plans to go public and list their shares for public to invest in. Apart from these billion dollar tech unicorns, several others are planning to go public later this year as well.
However, as has been the case with IPOs, insiders and rich venture capitalists are cashing out their early investments while leaving the risky, high-priced stocks to average consumers. This nature of public listings also highlights the contrast difference between the investment in traditional stocks and betting your money on Bitcoin.
While there is nothing wrong with traditional startup models, there is no equality in the distribution of benefits either. Every startup in lieu of getting bigger dilutes the eventual benefit towards the investors, and by the time they go public, most of the added benefits are already cashed out or held by the investors.
The government policies make it extremely difficult to invest in new startups unless they boast of high capital investment backing them. Thus, any successful startup already owes their share of success to these wealthy investors who make more money on their investment leaving just a bit for the rest with added insecurity.
Why Bitcoin Proves to Be the Most Democratic Startup?
Bitcoin, the pioneer of the cryptocurrency space works on the principle of decentralization, which means there are no stakeholders and any amount of Bitcoin one holds give them a stake on the network. Unlike traditional startups, one can invest in Bitcoin irrespective of their financial status. You might just have enough money to buy 0.01% of a Bitcoin, and still, you can do that.
Since Bitcoin is based on the principles of democracy providing equal opportunity to everyone, no government or bank can restrain you from investing in it. Apart from making a direct investment into the Bitcoin, one can also mine Bitcoin blocks to earn the reward. Bitcoin’s founder Satoshi remained anonymous to make it a truly decentralized network with no investors and Satoshi gave up all the equity on the project.
The Startup Arena Has Become the Money Making Machines For the Elites
The startup arena for sure gave us many successful firms of today, but in reality, it has become a source of making more money for the elites. Take UBER, for example, Jeff Bezos invested $3 million into the project and took out $700 million by the time company went public. Chris Sacca, the famous Shark Tank judge converted his few million Uber investment into $2 billion at the time of Stock IPO.
Today’s startup arena is heavily tilted towards the elites, as they get to put in a small token of capital at a heavily discounted price, and by the time the startup becomes a successful Billion Dollar Unicorn and goes public, it is already too late for others.
The Greed of Elites Are Already Ruining Successful Startups and Crushing the Hopes of Small Investors
Earlier the startups only used to go public if it is stable and profitable, however, the trends have changed in the last couple of years as the greed of venture capital investors are growing. The trend was started back in 2017 by Snap which incurred heavy losses right after going public, and its stocks are valued at half the price from the time of listing.
Similarly, Lyft suffered a major crash in prices only weeks after going public where it’s stock price fell from $87 to just $58. Uber which is targetting $90 billion valuations is hoping to raise around $8-$10 billion through its IPO. This scenario makes it extremely difficult for common investors as they buy these highly priced stocks without any certainty that the company would make money.
Bitcoin is a Shining Example of How Startup Culture Should Be Like
Bitcoin in just 10 years of its existence has impacted more lives than many of these overhyped billion-dollar startups Unicorns. Surely it got to the center of attraction only after its 2017 price rise, but since then its progress has been no less than phenomenal, irrespective of its price fluctuation.
The technology has not just helped third-world countries like Venezuela, Kenya or Zimbabwe, but it has changed the perception of traditional and institutional investors who did not miss any chance of bashing it over its price volatility. And that is the beauty of the technology which can be used by a starving nation to help them get out of their distress as well as by institutional investors to make better profits in a very small time frame.
Thus, Bitcoin embodies the democratic value and provide equal opportunity to anyone and everyone irrespective of their financial status.
- Source: First Appeared Here
- Published Time: 2019-06-03 17:36:56
The views and opinions expressed in the article Why Bitcoin is the Best Startup Amidst Hundreds of Overhyped Billion-Dollar Tech Unicorns do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research.
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