Best 4 Bitcoin Financial Service Affiliate / Referrral Programs
Affiliate Site
Category
Commission
Payout in Bitcoin?
Payout in other Currencies?
Description
Financial Service
One Time Commission:

0.2 BTC

Revenue Share:

20 - 50%

Lifetime Revenue Share:

20 - 50%

Bitcoin Payout?Yes
Non-Bitcoin Payout?
    NO
Profitable bitcoin lending | Global small business loans
Financial Service
One Time Commission:

NO

Revenue Share:

0,50%

Lifetime Revenue Share:

0.5 - 0.25%

Bitcoin Payout?Yes
Non-Bitcoin Payout?
    CREDIT CARD
P2P Bitcoin Banking
Financial Service
One Time Commission:

NO

Revenue Share:

50%

Lifetime Revenue Share:

50%

Bitcoin Payout?Yes
Non-Bitcoin Payout?
    NO
Highly Secure Bitcoin Wallet
Financial Service
One Time Commission:

NO

Revenue Share:

25%

Lifetime Revenue Share:

25%

Bitcoin Payout?Yes
Non-Bitcoin Payout?
    NO
The World's Most Profitable Bitcoin Investment

Bitcoin Financial Service Affiliate / Referrral Programs

Crypto currencies in financing

Bitcoins are still much and hotly discussed. Is the digital means of payment suitable for financing investments at company level? An overview of opportunities and barriers.

Bitcoin as a means of corporate finance

The task of financial managers is to look for investments that increase the value of the company and are financed as cost-effectively as possible. For this purpose, financing alternatives can be compared for a given rating, e.g. prices for borrowing in different currencies and interest rate structures. For example, a financial manager from the euro zone could finance himself in US dollars, the foreign currency amount would be turned into euros via a currency swap.

Is this also possible with the probably best known crypto currency Bitcoin? From the helicopter's point of view, it would ultimately be financing in a foreign currency such as US dollars.

Fathoming cost advantages

The costs of financing can be seen on the capital market. The financial manager considers the returns of financial instruments of other companies with a comparable risk structure and business model. If he wants to issue a bond, he can look at the yields of the corresponding issuers.

Bonds in different currencies and maturities are available to large and internationally active companies. The market for Bitcoin corporate bonds, on the other hand, has so far been limited. For large bond currencies, there are yield curves for different segments. For the Bitcoin one looks for these in vain. This should make it difficult to find an adequate price for the bond to be issued. However, it is likely to be much more difficult to achieve interest cost savings on this basis.

Transaction Speed and Security

Attractive time windows for bond issues do not exist for days or even weeks, but are of short duration. This is unproblematic with the common currencies - there are continuous prices for bonds and currency, at which tickets can be processed over many millions of seconds.

Whether this is also possible with Bitcoin seems questionable. This is due on the one hand to the technology of the transactions and on the other hand to the low liquidity and market depth compared to other currencies. And there is no competition, so that there are sometimes considerable price differences between individual trading venues. Arbitrage should therefore begin and eliminate the price differences. This does not seem to have happened on a large scale with the crypto currency, which in turn is probably due to the technology of transaction processing.

Hedging, exchange rates and volatility

Financial managers have options, futures, forwards, swaps and so on to map the desired structure and risk of a position. With the introduction of a futures contract on Bitcoin in December 2017 by the Chicago Board of Exchange and the Chicago Mercantile Exchange, at least one listed futures contract has been created that has the potential to be suitable for managing interest rate risk arising from Bitcoin transactions.

However, the experience period is too short to judge whether the contract has been successfully accepted. In any case, it is an important step for the long-term implementation of Bitcoin as a currency for financial managers and institutional investors.

Risks of a Bitcoin Financing

Financial managers prefer stable currencies. Looking at the development of Bitcoin's exchange rate against the euro for the period January 2012 to June 2018, it is noticeable that the exchange rate fluctuations did not become more significant until 2017. This indicates a higher volatility. The comparison with the euro and the US dollar over the same period is also remarkable.

A comparison of the time series shows that the volatility of Bitcoin is many times higher than that of the euro and US dollar. If one also considers that there are no liquid derivatives for the Bitcoin to hedge exchange rates, it must be stated that financing in Bitcoin is currently not indicated for financial managers.

Other risks associated with financing in foreign currencies are political or economic in nature or arise from changes in legislation or new regulatory requirements. Risks may arise if governments prohibit the trading, possession or use of the crypto currency. Even if this is likely to have a de facto regional impact, such a ban will have a signal effect on the entire crypto-currency market, which may lead to uncertainty among investors, issuers and other market participants. This in turn can lead to higher price markups.

Outlook: Crypto currencies as a financing instrument

When making financing decisions, financial managers should ensure that they save on financing costs and thus contribute to increasing the market value of the company. Using Bitcoin as a financing currency does not currently make this possible; on the contrary, the financial manager would be taking additional risks for the company, primarily due to exchange rate risks and high volatility.

In perspective, it is obvious that one or the other crypto currency - this does not necessarily have to be Bitcoin - will take the position of a stable and resilient large currency with a liquid market for spot and forward instruments. And such a crypto currency then belongs as a fixed component in the toolbox of a financial manager's financing instruments.

Generate millions with Bitcoin

More and more companies are resorting to a so-called ICO for financing. They want to build on digital money. The market with crypto currencies is growing and growing - and Switzerland is playing a leading role.

The Bitcoin dominates the headlines: Hardly any other phenomenon has changed the financial world as much in recent weeks as the digital currency. But Bitcoin is only one of well over 1000 so-called crypto currencies. The novel digital means of payment inspire many young entrepreneurs. If they want to finance their companies, they no longer count on conventional venture capitalists alone, but on crypto currencies.

20 times more than in the previous year

With an ICO, a company publishes its business idea on the Internet. Investors transfer money - not francs or dollars, but so-called crypto currencies such as Bitcoin or Ethereum. In return, the investors receive a crypto currency created by the company. This can, for example, serve as a means of payment for the company's products, or as a share: in this case the investors have a share in the company similar to a share. The young companies, in turn, sell the Bitcoins they receive and receive conventional money in return, which they can use to promote their business.

The ICO market is growing rapidly: A study by the consulting group PWC shows that last year companies were able to raise 4.6 billion dollars via an ICO by the end of November. In the entire previous year it was still 236 million, in 2015 even only 10.5 million. Not only the amount of capital is increasing, but also the number of companies that dare an ICO: 438 companies issued digital coins - a good eight times as many as in 2016.

Volume of ICO The market is booming: by the end of November 2017, ICO had flushed 4.6 billion US dollars into company coffers worldwide - almost twenty times more than in the previous year.

If the product is convincing, you can raise a lot of money with an ICO. So far, seven companies have been able to raise more than 100 million dollars. This arouses interest - especially in Switzerland. In hardly any other country do young entrepreneurs put so much emphasis on the ICO card: four of the ten largest ICOs came from Swiss companies.

Attention, fake!

But this hype also attracts fraudsters and money launderers. Questionable examples are known, such as the club Quid Pro Quo. He launched "E-Coin", an alleged crypto currency - but it was a fake, the association acted with fraudulent intent. The Finma Financial Market Authority intervened and stopped the trade. Quid Pro Quo had obtained four million francs by fraud.

The Chinese central bank went even further: in September it banned the raising of capital via ICO. Swiss lawmakers do not want this, the market has not yet been strictly regulated. But here, too, ICOs are subject to the usual laws. Finma writes: "If Finma has indications that financial market laws are being violated, it will follow them up and - if necessary - pull the companies out of circulation. In addition, Finma is currently giving concrete form to its practice with regard to "ICOs".