Over the past few days, I’ve seen some buzz about Bitclout. Earlier today, I sat down to learn more about it, and I have to say, the model intrigues me.
I’d encourage you to take a look at the whitepaper, but if you don’t have the time, here’s the key takeaways;
- Every person on the platform has a coin. The price increases as people buy the coin, and decreases as people sell the coin.
- The platform also includes a social network similar to Twitter.
- The idea behind the network is you can essentially bet on people. Be it Elon Musk (who’s coins currently valued at $83,000 ~ or me who’s coins currently valued at $25);
If people understand this, then the value of someone’s coin should be correlated to that person’s standing in society. For example, if Elon Musk succeeds in landing the first person on Mars, his coin price should theoretically go up. And if, in contrast, he makes a racial slur during a press conference, his coin price should theoretically go down. Thus, people who believe in someone’s potential can buy their coin and succeed with them financially when that person realizes their potential. And traders can make money buying and selling the ups and downs.
- The network has it’s own cryptocurrency backing it – the only way to buy that currency is with Bitcoin. So really, two factors affected the price of a coin; the volume of it being bought/sold in addition to the network’s crypto itself.
- Everything’s decentralized.
The whitepaper details possible features that will be built out down the road, all of which look exciting. In case your curious, my “investment” strategy looks like this;
- 57%~ in my coin, friends/connections, people I believe in
- 37%~ in public figures (GaryVee, Tulsi Gabbard, Elon Musk, Mark Cuban, Joe Rogan, Russell Brunson, Chamath, Patrick Collison, Craig Clemens, Kara Swisher, Adam Grant, Andrew Yang, Casey Neistat, Edward Snowden, Dean Graziosi)
- 4%~ in companies I believe in/think will go up in value (Notion, Disney, Wendys, Vox, Harrys)
- I’ve heard that it’s good to hold some of your money in the crypto itself and not in any specific coin as it goes up in value as more people buy-in. I’m not doing much of this right now but plan to in the near future.
What’s important with things like this is you don’t invest any more than you are comfortable losing. Right now, you can’t even pull your money off-platform (I’m sure that will change in the future). For all we know, there’s a chance this is a giant Ponzi scheme. I just put in about $150, although, over the next few days/weeks, I’m sure I’ll slowly invest more. I want to dip my feet in the water, though, and see what all the buzz was about. In some coins, I only have a couple of bucks invested.
This is definitely an exciting platform, and I am excited to play around with it more. If you want to take a look at it, I’d encourage you to, but remember the risks involved. Here’s what I’d do if I were you;
- Signup for an account and verify your phone number – you’ll receive about $10~ in coin for doing this alone. When you signup be sure to write down/store your private key – this is the equivalent of a password. It’s the only way to get back into your account.
- If you want, add in additional Bitcoin. If you don’t already have it, the easiest way to buy it is probably Cash App. Coinbase and Robinhood are options as well.
- Setup a profile.
- BUY YOUR OWN COIN. I didn’t do this right away, and that was a mistake — if you don’t buy your own coin before anyone else does, the price will be much higher, even if other folks only buy a small amount.
- Invest in other coins — in case you want to grab a few cents of my coin, here’s a link.
That’s about it! I’m by no means an expert, but I just thought I’d share this. There’s always the first mover’s advantage with platforms like this, but I can’t stress how important it is to be careful—looking forward to seeing what comes out of this.
Update as of 4/12/21 – I’m now about 80% sure Bitclout is at the very least overhyped and possibly a big elaborate scheme. I’ve stopped investing new money into it and am keeping an eye on it. With that said, I haven’t pulled any money out (via selling to a third party) and don’t have any immediate plans to do so. If you do explore Bitclout, enter with caution.