The Meaning of Bitcoin
5 Lessons for Businesses
The Meaning of Bitcoin – 5 Lessons for Businesses
Bitcoins are now 10 years old. Apart from making us all feel old and thinking where did the last 10 years go, we have a lot to learn from the cryptocurrency – The Meaning of Bitcoin
Bitcoins have somewhat shattered my belief in a free market – a neo-liberal system where the market is allowed to find its own equilibrium, with the least central interference.
But, the general hope with neo-liberalism is that the prices of assets won’t fluctuate to a level where the people involved can’t sleep at nights.
And this is exactly what Bitcoins did. From a time when you could get them for pennies and hitting a peak of 5 figure prices continuously, and then going back to mid 4 figures – there is a period of less than a decade. If we eliminate the first couple of years where the level of interest was low in Bitcoin, the change is even more dramatic.
Let that sink in. For those who invested at the right time, BRAVO. For everyone else, I feel your pain. Maybe a completely free market is a bit too much of a gamble.
But, how did Bitcoin create this movement? How did it become so popular? How did it show up in a closed financial sector and draw attention? All important questions – all requiring deeper understanding of the phenomenon.
But, we are interested in looking at Bitcoin as a business – mainly as a digital business – and learning from it. So, let’s breakdown the positives.
(The negatives are quite self-explanatory I think – humanity has not reached a level of selfcheck capabilities and we still need some financial guidance).
1. They were the First
When bitcoin,org was registered as a domain in August 2008, there was no other cryptocurrency on the market. Actually, until Satoshi Nakamoto wrote a paper on it in October 2008 – explaining what a peer to peer electronic transaction system is – most of us did not even understanding what the fuss was about.
What I am trying to hint at is – Bitcoins were the first on the market to offer cryptocurrency. In fact, by 2014, most other cryptocurrencies that came afterwards had the same source code as the pioneer Bitcoin.
Bitcoin truly explored the first mover step as a competitive advantage.
(2014 was possibly the best year to invest in Bitcoins – let’s just leave this here).
2. They Understood the Feeling of the Market
The 21st century has seen quite a few philosophical rises. (I am not going there either – I might offend someone).
The hippy movement of the 1960s and 70s was based on going against the norm – of expression and freedom. The hippies of the 21st century seem to be a bit more skilled with technology. They want (and have wanted it for a while) financial freedom.
Let’s hope the hippies of the 21st century are not attacked by skinheads.
The creators of Bitcoin understood what the market was tending towards – a free system of exchange. They went and applied it to great effect in the form of Bitcoin.
Reading the market is one hell of a skill and we should work on it.
3. They Created a Buzz
When Bitcoin was established, it made big claims.
In 10 years, they were going to wipe out cash. (Well it did not happen – but the use of cash is on a decline anyways).
But 10 years ago, such claims got attention. People came to know about the cryptocurrency and were truly intrigued.
Bitcoin knew what it was doing – it was creating a buzz for the movement. And it worked.
Let’s convert that into promoting our business in the appropriate tone.
4. They are Trustworthy
Calling Bitcoins trustworthy is a big claim, but stay with me.
By trustworthy, I mean transparent.
You know exactly what is happening. You have access to the details of each of the transactions within a set.
There are ways to block some of this information, but in most cases, you can check transactions with the right set of information inside a network using blockchain.
This level of transparency is not possible in any centrally controlled exchange system. There are always some blind spots. (This is a topic in its own right)
So, in terms of business, even if the internal conditions are fluctuating, it is important that you stay transparent – and hence trustworthy – with your clients. You will go a long way by doing so.
5. They are Fast
Making a bitcoin transaction does not take 10 working days.
They don’t even take 3 working days.
They take minutes.
As long as the information is processed, the job is done. (Well the part of exchange – you probably still have to produce the work).
Work on your bottlenecks and provide value to your customers as quickly as possible. By doing so, your customers will stay with you in the long-term.
Conclusion – The Meaning of Bitcoin
So, what is the meaning of Bitcoin?
Be first – don’t sit and wait for good things to happen.
Understand your customers – provide what they want, preferably before they want it. It will take some time to take off but you ultimately will.
Be Bold – Aim high and go for it. Even if you fail – well you tried.
Build Trust – Build a relationship, instead of merely a transaction.
Be fast – Don’t keep your customers waiting. They will take their business elsewhere then.
So, here we go. Bitcoin isn’t all that bad I guess. (Well, at least it’s still popular – that sells).
Marketing Voice Blog – This is Not it
Here you go – you are (somewhat) smarter now.
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One that believes in Digital Psychology and targets ideal customers of our partners. Get in touch to discuss your needs.
We look forward to working with you.