Recently I've been playing around with a decentralized social network called BitClout, and I'm fascinated by it.š¤©
So much so, in fact, that I need to talk to you about it in this postā¦š
So here we go:
What is BitClout?
One of the key differences, though, besides the fact that itās on the blockchainā¦
Is the incentivization structure.
Every person who signs up for BitClout automatically gets their own coinā¦šŖ
And then other people on the platform can ātradeā on your coin by buying or selling it.š
Seems weird?
I think itās brilliant, and hereās why:
BitClout creates a powerful incentivization structure for members (called creators) to be engaged.
For example, when I first joined the platform, my coin was worth a few dollarsā¦
But I immediately bought some of my own coin, which increased the priceā¦
And from there, more people started coming in and buying my coin as well.
Another person dropped $50,000ā¦
And total, Iāve had dozens of buyersā¦
All getting anywhere from $1 worth of my coin to 5 figures.
And of course, thereās also the financial incentive too.
As my coin keeps getting higher and higher, it technically increases my net worthā¦
Meaning I could sell off some of my coin at some point, convert it to BTC, and then back the USD if I want.
Hereās the thing, though:
For sure, some people are going to end up making a bunch of money on BitClout by day-trading on individuals ā and more power to themā¦
But thereās actually a brilliant mechanism in place to avoid pump-and-dumps tooā¦
Which is that, as you or someone else sells off your coin, the value dropsā¦
Which means each subsequent coin is worth less.
This further incentivizes creators to keep building their presence and value on the platformā¦
Because if they just tried to exit out of their position all at onceā¦their value would tank, and they would pay a harsh financial penalty for doing so.
Okay, so thatās the incentivization structureā¦
But there are many additional reasons that Iām really impressed with BitClout.
Probably the biggest is that it feels like the Wild West (in a good way).
Nobody really knows how to use the platform yet.
Iāve been followed by Venture Capitalists and Models, interacted with the founder of Wikipedia, and connected with musicians and artists.
Thereās no āright wayā to do this ā and to me, that creates a lot of freedom on the platform.
Plus, because itās so earlyā¦
You really have access to nearly anyone on the platform.
Kind of like Clubhouse was before it started blowing up this year.
Personally, though, Iām enjoying BitClout way more than ClubHouse.
Maybe itās because Iām an introvert, or maybe itās because I value my time, but I just couldnāt get into CH.
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Honestly, thereās a lot more that I could say about BitClout, but I may need to save that for a second post.
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Here are a few final thoughts, though:
- Ā Iād recommend signing up and reserving your name. Even if youāre not sure if youāre going to use it, thereās no reason not to create an account and explore. (One Tip: When you do this, set your founder reward percentage to 10% ā just trust me on this)
- Then just read up on the platform a bit more, play around on it, and see what you think. Donāt become addicted. But check it out.
- Oh, and of course, make sure to give me a follow here Iām posting very actively on the platform right now.
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ā SPG
P.S. Wait, isnāt BitClout a scam?!?.
Coffeezilla has now made two videos about BitClout being a scam. And there are people in the Crypto space who donāt seem to like it.
I just watched the second video from Coffee. I like the guy a lot, and I think heās right a lot of the time. Hereās a link to his second video so you can go check it out and get his take on BitClout.
I personally donāt feel like BitClout is a scam. I could absolutely be wrong. But sharing my personal sentiment with you.
There is some questionable stuff about the way it was set up and how the founders are rewarded.
Thereās some questionable stuff about the way theyāve created artificial āvalueā by reserving the top 15,000 profiles on Twitter.
I get where Coffee is coming from.
But to meā¦
- Beyond all the economics and āmoneyā stuff ā I am just really enjoying using BitClout as a social network and platform. Iām not on it to get rich. I think itās a very interesting application and use case of blockchain technology and that itās actually a good product.
- BitClout feels like a more honest way of doing social media. Many people on IG, FB, YT etc., are posting content with hopes and dreams of making money. Becoming an āinfluencerā and all of that. With BitClout, youāre incentivized by the content youāre putting out and how it connects with people. That seems more transparent than getting paid undisclosed sums of money to plug products.
Donāt get me wrong: I think BitClout does have the potential for abuse. People could go in and pump up the value of their coin, so-called āgurusā can tell people who donāt have much money to invest it all in them, and then those coins could end up being entirely worthless. Lots of people could be hurt by making reckless investments.
So donāt do that. Donāt go on the platform and start investing a ton of money you have into people with the hopes of some big payday. Maybe donāt invest at all for the time being.
I think buying coins from people can be fun. But if youāre going to do that, treat it as purely speculative for now. If youāve got some extra BTC sitting around and you want to buy a few coins that are staked to a few folks, go for it. But donāt think of this as a magic bullet thingā¦
Because thereās a reasonable chance that the entire platform goes bust, and youāll lose all of your money.
And if, on the off chance, BitClout ends up becoming a huge thingā¦the decentralized Twitter with a billion people on itā¦youāre going to be super happy that you got started in the early days instead of later.
*This post originally came from an email I sent to my private list. If you want to see more stuff like this from me, you can apply to join my list using this link