What in the world is BitClout and can you profit or benefit from it?
There is a whole ton of FOMO (fear of missing out) especially on the cryptocurrency gravy train. Institutions want in. High Net Worth Individuals want in. Even the high school folks want in. From April 2020 till Feb 2021, the shouts of “to the moon!” echo around everywhere.
For the most part, it was a joyride as the Fed kept the money machine going.
It is from this culture of “getting in early and getting out rich” that has fuelled all kinds of thinking of how to profit from the blockchain and crypto space.
But what are the legitimate businesses that actually make an impact in our world and how can we be a part of it and yet profit from it?
If you are a content creator, or are looking to start a side hustle now, BitClout may be a good place to start. Again, I have not done further research and have not gotten skin in the game, but this is what I gathered so far from those who are already in it. In short, you have to do a little more digging around and delve deeper if you want to find out more.
First up, some facts about this space called BitClout.
1. BitClout - the ALL-NEW BLOCKCHAIN Social Media Platform
From their working document:
“BitClout is a new type of social network that mixes speculation and social media, and it’s built from the ground up as its own custom blockchain..”
This is literally, a remake of Twitter, yeap – ON THE BLOCKCHAIN!
Yes, you read that right. But how does it work since all these existing platforms are centralised? Blockchain is meant to decentralise things, right?
Read on.
2. How does it work?
Let’s run through what they are saying on their site.
Basically, it is your Twitter, but with blockchain steroids.
It is a “new kind of social network”. It uses what they call “creator coins” that allow those who create content to monetise that content. Each content creator has his/her own coin and the powerful thing is that BitClout is not owned by anyone nor run by a managing director/CEO.
In that sense, if you post on Twitter today, your tweet will be hosted on the Twitter platform. Most of what you say,should you want to monetise it, will be shared in currency terms with the platform you host that content on. BitClout is fully decentralised in that your tweet is open for you to choose how other players would like to use it, and on the same note, pay you for it.
For example, if someone were to create an interface that ranks influencers and you are an influencer in the space of skateboarding, your profile being on the blockchain, the things you have shared about, give a developer the place to develop a UI that extracts data from those things to rank you and then try to monetise that information by selling it say to an influencer manager who is looking for a specific profile type. The blockchain allows every one involved in the process to be paid in kind.
3. Is BitClout a cryptocurrency?
Firstly, BitClout is primarily a blockchain tech, of which it has its own eponymous crypto called BitClout that you can buy. Now, as an investor, I want to know why I should be parking my money into something, especially if it is new. The last thing that you want to do as investor is to FOMO and rush into it only to realise that this entire “business model” is a dud.
The price of BitClout is poised to double for every 1 million BitClout sold. This results in less than 20 million BitClout that will be minted in the long run, which is less than Bitcoin itself.
4. What’s the point of the Creator Coins within the BitClout space?
Creator Coins are sold within the BitClout space and are specific to a particular creator. So, we are on BitClout as $BBAMarketPerspectives.
You can buy our coin, which is worth this value – 1 US Dollar = 4.59 BBAMarketPerspectives.
The Creator Coin is literally a voting coin on reputation. It plays into the cancel culture. It also plays into the tipping culture as well. This is where your social reputation really comes into play and how you play the social game will determine your “social worth” in token value. If you can make enough people believe in you, then yes, the value of your coin will go up.
Whilst Elon Musk has yet to claim his profile, and assuming he does, people can literally get to vote on what he says. “Dogecoin to the moon!”, “Bitcoin is great for humanity!” and his price goes up. “Bad for environment, prefer fiat!”And the price drops. Now how about that? Cool huh?
We are currently working through on this too as we attempt to navigate this space as a periodical. It may die out, who knows? Will people want all the hassle and trouble of having to buy more of a coin just to validate their worth? There might be. But there might be others who have better things to do than to use such a model for profit and revenue generation.
"WHERE LAMBO?"
5. WARNING SIGNS
As with all new things, scams are likely to be the thing to watch out for. And this is no surprise. If there are rug pulls in DeFi projects, this one is no different. Hear it from this video.
TL/DR - if you buy into a creator's coin, that person can do a rug pull on you at some point and leave with nothing to hold onto.
CONCLUSION
It sounds like a good idea, but at the end of it all, our take is that this may be just one of the passing fads that will pass by and fade away. We may be wrong, but we have been somewhat right on quite a number of business models in relation to proper fiat equity share prices and actual businesses. And this one on Creator Coins, might just be a moonshot never to be realised.
Who knows? What are your thoughts?
Yours,
Chief Editor,
BBA Market Perspectives
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