Advantages And Disadvantages of Crowdfunding Platform
Before start discussing the advantages and disadvantages of crowdfunding platforms , let first discuss why we need crowdfunding platforms. In the 2007 banking crisis caused a huge dip in the confidence of the financial system. People started looking for alternative methods to meet their credit and investment needs. One of the consequences of this was the development of peer-to-peer networks and an attempt at decentralising the monetary system. Cryptocurrencies and crowdfunding platforms are two great examples of this attempt at decentralisation. The exponential growth of the internet and social media has also made crowdfunding more accessible than ever. Is crowdfunding a sensible alternative to traditional bank financing? Many start-ups and people with ambitious projects nowadays use crowdfunding as a financing method to raise seed capital. However, crowdfunding is a relatively new form of financing. That is why it is essential to weigh the pros and con...