As of today, many claim that buying BitClout coin is much like investing in Microsoft or Google when they first went public. Days after its launch, the platform gained massive hype, with more and more people screaming “invest!”. Whether you are a solid believer in crypto or someone who’s new to the community, you need a firm understanding of what BitClout is in order to hop on the trend. So what is BitClout? And does it work?
BitClout is a decentralized social media platform, meaning it is not backed by a single corporation. Its success largely depends on the community backing in it. Essentially, BitClout users enjoy various luxuries typical social platforms do not offer, not the least of which is the security and privacy of their data. New decentralized platforms completely obliterate the notion of the user becoming the product rather than the customer.
However, the intended purpose of BitClout is not a more secure user-space, but rather an ecosystem that allows you to bet on your favorite content creators. Traditionally, only websites such as Patreon help you donate to your favorite social media figures. In exchange, you might gain access to exclusive content and become a part of a cherished community. BitClout takes it a step further by allowing you to invest in your favorite creator.
Upon signing up, you can buy BitClout coin using Bitcoin. The price doubles with every one million units bought, meaning the earlier you get in, the better. Later on, you can use BitClout coin to buy a specific creator coin exclusive to an influencer. The coin’s price follows a basic supply and demand model: every time someone buys the coin, its price goes up, and every time someone sells, the price goes down. Eventually, a coin may get so expensive that no one will be able to afford it, keeping the currency scarce and at high value. The system is set to mint coins for users whenever they buy and destroy coins whenever they are sold. This means that users cannot trade coins between each other, but they can heavily influence price. The premise is that as long as a creator continues to make good content, people should continue to see him as a profitable investment and continue buying his coin, bringing its value up. Creators own a portion of their coin and may choose to offer giveaways, free merch, or exclusive content to those who buy it as well. So while users make money investing in influencers, they still enjoy those luxuries provided by donation websites.
Although the project had massive success early on, people are still very skeptical about certain aspects. For example, you cannot convert your BitClout back into Bitcoin, meaning any profits you make are held in BitClout and cannot be cashed out, at least for the time being. Some stated that this is “classic Ponzi scheme behavior”, reminding people of the Bitconnect events.
There’s another controversy around how BitClout gained so much hype in just a few days. You see, the platform is text-based with a user interface fairly similar to Twitter. In order to attract users, developers reserved profiles for the top 15,000 Twitter accounts, and allowed regular users to trade their creator coins without these creators being present on the platform. Essentially, BitClout used personal brands to get users on the website without the consent of those high-profile individuals. Nevertheless, these people were not truly harmed. They own a share of these traded coins and would claim their profits once they verify their accounts.
There were many mixed reactions with this incident, and they varied between people hurrying up to verify their accounts, while others demanded their profiles be taken down and threatened to take legal action.
Behind all this controversy, it is easy to get distracted from all the good BitClout brings to the world. It offers innovative solutions for problems both content creators and consumers have long suffered from. Through BitClout, creators can build more sustainable and intimate relationships with fans. Furthermore, they can rely on content creation to get paid rather than monetization or third-party advertisement. As a content consumer, BitClout allows you to make money while supporting your favorite creator, making you a more active and conscious consumer.
But most of all, it would make investing more accessible and much simpler for everyone. We all understand the social values attributed to personal brands and can solely make predictions about the future value of creator coin. Whether the project succeeds or fails is up for debate but BitClout has already established itself as the hottest crypto trend of 2021, and has shown promise similar to that of bitcoin in 2011.