Creating the Perfect Cryptocurrency | Ingredients That Go into Making an Ideal Crypto

With Bitcoin soaring high into the financial sky limits and other cryptos following the suit, it seems that mankind has finally found their relief in the form of digital currencies, enabling people to free themselves from the tyranny of fiat currencies.

The financial crises and the unpredictable and uncertain nature of fiat currencies is what that is causing people to move towards cryptocurrencies.

It is not just the short-term investment benefits that people gain out of going for a crypto, but also the steady nature and a decentralized background that gives it a unique magnetism of trust. Especially from disgruntled Forex traders who tried their hands at fishing in ever stormy waters of the fiat.

However, creating a new cryptocurrency is not an easy task. It is not just a bunch of computer doyens who come together and decide upon to create a 256-bit double hash algorithm to generate a currency. It is a team effort, a masterstroke. Creating a new cryptocurrency out of nothing is like building a massive castle that will sustain for centuries and millennia and needs to be built right from its foundations laid twenty feet deep.

Think it this way. A cryptocurrency is something that involves tech being brought into the world of finance. This creates multiple dimensions of the crypto, and as you discover more and more work that needs to be put into making this happen, the dimensions keep unfolding.

We start with finance and tech, and we incorporate technical people and financial or market experts. Then as we move on, comes the legalities and marketing aspects since this too could be classified as a business. And there you go. It is a complex task and a team effort that needs to be executed like clockwork.

Let us take ‘one at a time’ look at every functional part of building a sustainable and hence successful cryptocurrency.

Business Management Professionals:

Creating a sustainable cryptocurrency is creating a sustainable business. Therefore, the team is going to need experienced business managers who will be turning the idea into a realistic real-world enterprise that will work for a profit-generating, self-sustaining organization. A business management team will be creating a blueprint of the business structure around the whole cryptocurrency through plans and methods, facilitated by a long-term anticipatory insight.

No matter how great the idea be, crypto needs to function in an environment with set rules. This would include funding for the project, finding investors, pitching, and being able to gather and manage resources that will go into developing this business.

Financial Experts:

Although cryptocurrencies work as a parallel monetary system, they might not breach the law of ‘intrinsic value.’ A digital currency that does not operate upon any intrinsic value can be just considered not more than any random set of 1’s and 0’s. In addition to that, there is a maze of financial regulations set by the financial authorities of a given state as well as set internationally that the crypto business team will have to consider.

This is where the team is going to need financial experts who will shine the light on the various natural aspects of the financial markets and work in co-ordinance with other teams that will enable them to create a viable product that does not falter on the natural laws of finance.

  • Resolving Debt Related Issues:

If at all there is time that the enterprise goes into Jeopardy of debt for supposedly, a financial expert will help with the following tasks:

  1. Analyzing faults in operational methods of the enterprise and deciding upon a strategy that will help the enterprise rebound.
  2. If you file for economic failure, they will create the monthly operational reports as an evidence of a faltering business to the courts.
  3. Preparing your financial statements pertaining to filing for insolvency.
  • Managing Taxation Related Responsibilities:

Financial experts will also assist in terms of taxation policies of the digital cryptocurrency with the growing business. A team of experienced financial experts will lend their advice on tax payments as per the role and growth of your digital cryptocurrency business, depending on the local laws.

  • Valuing Your Business:

Like any other enterprise, you need to estimate your enterprise value and this is where financial experts will put your digital cryptocurrency business on the table. They will assess the total value of your assets invested in the enterprise and balance them with your loans and other liabilities and then finally value your business accordingly.

Fund Managers/Economists:

The financial experts are going to need an extra muscle to rely upon so that their planning of the whole business stands true to the financial realities. Here is fund managers come into the picture. Usually, the role of a fund manager is to suggest the right mix of financial products and invest methods to ensure the most optimal return.

Here, a fund manager will ensure that the digital cryptocurrency can take the form of a viable economic and investment product for the potential investors. People wouldn’t like to invest in something with no value or something that is obscure. This is where the fund manager will work side by side with the financial experts to formulate a solid product background for the digital cryptocurrency.

Especially when it comes to the Initial Coin Offering Or ICO, fund managers are going to play an important role in formulating the policy of how to calculate estimated value for one cryptocurrency coin and how to gradually increase the value of the coin as more and more people ‘mine’ the coin.

If we want to go in details, we can divide the responsibilities of a fund manager in the following ways:

  • Ensuring Growth:

Since your digital cryptocurrency is a financial product, a fund manager will ensure that it grows over a period of time as an ideal financial product. A fund manager will formulate your digital cryptocurrency in accordance with the current regulations and financial systems and help craft your digital cryptocurrency into a tangible financial product that people can invest into.

  • Generating Prospectuses and Reports:

Fund managers will also fulfill the responsibility of creating prospectuses that will educate potential investors and clients about your digital cryptocurrency and help them understand its role in the backdrop of the current financial systems. Fund managers and their teams will also generate timely reports that will inform investors about the performance of your digital cryptocurrency since the last quarters.

Compliance and Regulation Experts Along with Auditory Personnel:

The reason we have merged them together is that they carry out an almost similar functionality.

The cryptocurrency would be required to operate in a legal environment where the resulting enterprise will have to follow certain laws and regulations that are specifically applicable to financial enterprises. This is where compliance experts guide the enterprise related legal and regulatory aspects such as its duties towards the customers, investors and government bodies and the liabilities that it will have to consider while operating as a full-fledged business body.

While audits of the organization’s internal structure pertaining to allocation of financial resources will be taken care by auditory managers, in order to ensure that the organization is managing funds competently in its books. This will ensure a full payback to the investors.

Mergers and Acquisition Specialists:

It is quite possible that an ambitious business start-up can be merged with a more established enterprise so that the entity can survive. This strategy is carried out in order to ensure that the business will be managed by a better-experienced team of experts and hence will be able to gain a greater share of resources.

However, during a merger or a buy up of a small business, there are legalities that have to be followed relating to the transfers of assets and liabilities to the larger enterprise. This final division becomes a bit more complex when two equally established enterprises combine to form a larger business body.

This is the time a company needs a good business merger specialist to ensure that all their books are balanced when it comes to the division of assets and liabilities and that no aspect is left unattended while combining the two organizations into a single entity.

Core Business Teams to Keep the Business Engine Running Hot and High:

After we have taken a brief look at the peripheral teams of experts who will help to guide the business in the prevailing financial and regulatory environment, we are going to understand the functions of the core teams involved to make the business a reality.

Technical/Blockchain Experts:

These are the people who will work on the core team of the digital cryptocurrency. Blockchain experts will be able to provide an abstract view of the Blockchain world with respect to its technical aspects. This will include structuring the whole technical core of the cryptocurrency, deploying the cryptocurrency online and ensuring that it works exactly the way this concept was intended to work.

Core Technological Team:

This is where we get to the nucleus of the whole cryptocurrency system. Although it is divided into a few sub-sections, some of whom that do not deal directly with the crypto itself, the fact does not diminish the importance of this core team.

First, you will have programmers and algorithm experts who will write the encryption algorithm based on the double hash 256-bit function. Or they may choose another encryption algorithm altogether, but that is going to use up more time and resources.

Legal Experts:

If the title was not enough for you and want an expansion of this point, here it is. As cryptocurrencies expand their spread on the financial world, international laws and regulations are slowly being formed from time to time that provides a standard background and legal format for their exchange, investment, value and their relation to solid commodities.

Legal experts will help the team with the consultation of these laws and rules so that the new cryptocurrency will have a smooth sail and not face any legal hindrances.

Marketing Experts:

In a time when there are numerous cryptocurrencies competing with each other, the team is going to need a marketing team that will help spread the word about this cryptocurrency through various marketing channels. So, we can safely assume that the marketing of this new cryptocurrency is going to be online as well as through offline sources.

However, both the marketing methods are going to need different teams altogether. For the online marketing, the crypto developers will need to hire a digital marketing team that will make use of the various online media such as social media like Facebook, Pinterest, Twitter and even Instagram and many other available boons to rule the online marketing  to spread the message.

In addition to that, they will also advertise about this crypto on paid Google ads or pay websites to feature an article about this new cryptocurrency. They may even start a new blog where they will talk about this new cryptocurrency through the use of SEO relevant keywords.

On the other hand, you will have the offline marketing team that will take the course of traditional marketing techniques such as choosing appropriate newspapers and periodicals to advertise this new cryptocurrency. They may also try visiting potential customers such as investors and businesses for information dissemination.

Research and Development Teams:

Any tech company worth its salt will never function without having a separate R&D team of its own. Research and development hold a significant place in the world of tech. Without adequate research efforts put into its life cycle, the product will stagnate and eventually chucked out of the competition.

This rule stands true to even a new cryptocurrency which is nothing other than a tech endeavor. This cryptocurrency will require various value additions and modifications that will enable it to morph and evolve into something that goes beyond its old roles and molds according to the changing requirements of the time.

An R&D team will facilitate this evolution to ensure the survival of this cryptocurrency.

Business Development Team:

There might be a confusion with the business management team but it’s completely different.. For the inexperienced, this may seem ‘almost the same,’ but the difference is that of chalk and cheese. While a business management team directs how the business has to be carried out by managing its various aspects such as manpower, resources, finances, funding, sales, marketing and pitching for investors, the business development provides a revenue model for the cryptocurrency.

They are the guys who will determine how the new cryptocurrency will be able to create new value for itself and bring in the income for its creators. In a nutshell, it will show how the crypto will help you earn money for the business.

Gold Bits Coin

Concluding Words:

Although we have divided all the involved teams into two groups, the peripheral and the core, sometimes their functions MAY overlap, or they may have to work in tandem with each other for certain aspects of the business.

One thing for sure is that as cryptos will grow in number, new cryptocurrency creators will have to niche down and provide something unique about their cryptocurrency; such as the recent trend of a gold backed cryptocurrency.

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