Recently I've been playing around with a decentralized social network called BitClout, and I'm fascinated by it.🤩
So much so, in fact, that I need to talk to you about it in this post…👇
So here we go:
What is BitClout?
BitClout is a decentralized social network that’s sort of like Twitter.
One of the key differences, though, besides the fact that it’s on the blockchain…
Is the incentivization structure.
Every person who signs up for BitClout automatically gets their own coin…🪙
And then other people on the platform can “trade” on your coin by buying or selling it.🛒
I think it’s brilliant, and here’s 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 dollars…
But I immediately bought some of my own coin, which increased the price…
And from there, more people started coming in and buying my coin as well.
One day I had one person drop $40,000 on my coin…
Another person dropped $50,000…
And total, I’ve had dozens of buyers…
All getting anywhere from $1 worth of my coin to 5 figures.
And of course, there’s also the financial incentive too.
As my coin keeps getting higher and higher, it technically increases my net worth…
Meaning I could sell off some of my coin at some point, convert it to BTC, and then back the USD if I want.
Here’s the thing, though:
For sure, some people are going to end up making a bunch of money on BitClout by day-trading on individuals – and more power to them…
But there’s actually a brilliant mechanism in place to avoid pump-and-dumps too…
Which is that, as you or someone else sells off your coin, the value drops…
Which means each subsequent coin is worth less.
This further incentivizes creators to keep building their presence and value on the platform…
Because if they just tried to exit out of their position all at once…their value would tank, and they would pay a harsh financial penalty for doing so.
Okay, so that’s the incentivization structure…
But there are many additional reasons that I’m 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.
I’ve been followed by Venture Capitalists and Models, interacted with the founder of Wikipedia, and connected with musicians and artists.
There’s no “right way” to do this – and to me, that creates a lot of freedom on the platform.
Plus, because it’s so early…
You really have access to nearly anyone on the platform.
Kind of like Clubhouse was before it started blowing up this year.
Personally, though, I’m enjoying BitClout way more than ClubHouse.
Maybe it’s because I’m an introvert, or maybe it’s because I value my time, but I just couldn’t get into CH.
Honestly, there’s a lot more that I could say about BitClout, but I may need to save that for a second post.
Here are a few final thoughts, though:
- I’d recommend signing up and reserving your name. Even if you’re not sure if you’re going to use it, there’s no reason not to create an account and explore. (One Tip: When you do this, set your founder reward percentage to 10% – just trust me on this)
- Then just read up on the platform a bit more, play around on it, and see what you think. Don’t become addicted. But check it out.
- Oh, and of course, make sure to give me a follow here I’m posting very actively on the platform right now.
P.S. Wait, isn’t BitClout a scam?!?.
Coffeezilla has now made two videos about BitClout being a scam. And there are people in the Crypto space who don’t seem to like it.
I just watched the second video from Coffee. I like the guy a lot, and I think he’s right a lot of the time. Here’s a link to his second video so you can go check it out and get his take on BitClout.
I personally don’t 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.
There’s some questionable stuff about the way they’ve created artificial “value” by reserving the top 15,000 profiles on Twitter.
I get where Coffee is coming from.
But to me…
- Beyond all the economics and ‘money’ stuff – I am just really enjoying using BitClout as a social network and platform. I’m not on it to get rich. I think it’s a very interesting application and use case of blockchain technology and that it’s 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 “influencer” and all of that. With BitClout, you’re incentivized by the content you’re putting out and how it connects with people. That seems more transparent than getting paid undisclosed sums of money to plug products.
Don’t 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 “gurus” can tell people who don’t 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 don’t do that. Don’t go on the platform and start investing a ton of money you have into people with the hopes of some big payday. Maybe don’t invest at all for the time being.
I think buying coins from people can be fun. But if you’re going to do that, treat it as purely speculative for now. If you’ve 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 don’t think of this as a magic bullet thing…
Because there’s a reasonable chance that the entire platform goes bust, and you’ll lose all of your money.
P.P.S. So if there’s a big risk, why do I think you should make a profile? Asymmetrical risk. Making a profile takes like 30 seconds. Spending a little time understanding the platform, following some people, and even buying some people’s coins (if you have excess cash you’re 100% willing to lose) doesn’t take long either.
And if, on the off chance, BitClout ends up becoming a huge thing…the decentralized Twitter with a billion people on it…you’re 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