Quote
I bet a lot of people learn about Bitcoin through word-of-mouth, but how many of them become Bitcoin users?
If it was really effective, I guess some small, but non-negligible fraction of population (say, 1%) would become Bitcoin users, but that doesn't seem to be the case, so it looks like people are just not motivated.
Let's consider the contexts in which Bitcoin can be mentioned, and how people can get motivated to become Bitcoin users:
* Bitcoin as investment: Some people might like it, other will see it being too risky/shoddy.
* Mining: ...
* Politics: Some people might like payment system which is independent of banks and government interventions, but others do not see problems in existing financial system, so they won't be motivated.
* Bought some item which is sold only for Bitcoins: That's pretty rare, since merchants who accept Bitcoin often accept other payment systems too.
* Earned some money with help of Bitcoin: That's actually interesting, but I'm afraid few people actually earned something with help of Bitcoin (aside from investing, mining and sites which give sub-penny amounts)
I believe we can try to improve the last one: many people would not mind getting extra income (especially unemployed/underemployed ones), so they will be motivated to learn more about Bitcoin if they hear that it gives some earning opportunities or relevant for entrepreneurship.
So now we need to find how exactly Bitcoin can help to earn money. Some ideas:
1. New businesses which are Bitcoin-related. Examples: BitVPS (buy VPS for Bitcoins), Satoshi Dice (gambling), mining-related services and goods, exchanges, etc. This is very cool, but probably not well aligned with word-of-mouth in general population.
2. People might get financial capital for their ventures on Bitcoin capital markets. Bitcoin gives people an opportunity to invest globally and anonymously, and such investments are usually not a subject to regulations, so they might give people more opportunities to raise capital without much of hassle associated with traditional capital markets. See examples below.
3. People can work from home and earn Bitcoins, the advantage is is easy to pay and it works globally and anonymously.
4. At some point we might see network effect where existing Bitcoin companies create demand for Bitcoin services. (E.g. a Bitcoin-related startup might prefer using BitVPS to avoid unnecessary conversions.)
Here are some examples of 'real world' businesses (not related to mining) which were funded via cryptocurrency capital markets (most of them via Litecoin Global, somehow):
1. [Tabita](https://www.litecoinglobal.com/security/TABITA): A small bakery in Mexico, uses money it got from capital market to buy equipment for more efficient baking.
2. [OPCU](https://www.litecoinglobal.com/security/OPCU): Hosting provider in Mexico, uses money to expand business.
3. [ART](https://www.litecoinglobal.com/security/ART): A small-scale ceramic art studio, used money to buy equipment.
4. [BitPride](https://bitfunder.com/asset/BitPride): They sell Bitcoin merchandise
(Also Esecurity/KoDDoS, Kenilworth, S.WIHEE, BitVPS.)
So, well, it works. I know at least first three companies I mentioned are more-or-less legit and pay dividends.
But currently Bitcoin capital market platforms are sort of PITA to use, and few people know about such opportunities, so this is an area which can be improved.
Anyway, here's what I'm getting to: just saying that Bitcoin is cool does not motivate people to start using Bitcoin. We need to motivate people by showing how they might be useful.
I think it would help if we start creating local groups interested specifically in Bitcoin business, where business might mean anything, like:
* selling something (e.g. used computers) for Bitcoin
* providing services for Bitcoin, like mowing lawns, teaching, fixing computers etc.
* funding new ventures via Bitcoin capital markets
* making new Bitcoin-related startups
* etc.
I am a software developer, and I'm thinking of making software which would help to organize such groups. It would work like:
* social network, i.e. users register, discover who of their friends are in club (i.e. are interesting in Bitcoin business) etc.
* marketplace/classified ads.
* reputation system
* escrow
* funding campaigns/capital market exchange
Software alone won't work, though, it is just a tool for people to organize communities. We also need to develop marketing strategies and materials which would engage people in optimal way, and to minimize possible problems, of course.
E.g. it's important to highlight that users help to bootstrap the local Bitcoin economy when they list their stuff in marketplace/ads section. If somebody has an old laptop, he might sell it for $50 via craigslist ad, but it might be not worth the effort. But if he sells that laptop for Bitcoins, he not only gets $50 worth of Bitcoins, he also feels like he have helped the local Bitcoin community, so this gives warm and fuzzy feeling too
.
So it's important to list things even if they aren't likely to be bought, just so that people who join the club would see how many things they can buy with Bitcoin, I believe this will work against the argument is that Bitcoin is fake/plat/virtual money: if you can buy so many real, physical things locally, then it is definitely real money
If it was really effective, I guess some small, but non-negligible fraction of population (say, 1%) would become Bitcoin users, but that doesn't seem to be the case, so it looks like people are just not motivated.
Let's consider the contexts in which Bitcoin can be mentioned, and how people can get motivated to become Bitcoin users:
* Bitcoin as investment: Some people might like it, other will see it being too risky/shoddy.
* Mining: ...
* Politics: Some people might like payment system which is independent of banks and government interventions, but others do not see problems in existing financial system, so they won't be motivated.
* Bought some item which is sold only for Bitcoins: That's pretty rare, since merchants who accept Bitcoin often accept other payment systems too.
* Earned some money with help of Bitcoin: That's actually interesting, but I'm afraid few people actually earned something with help of Bitcoin (aside from investing, mining and sites which give sub-penny amounts)
I believe we can try to improve the last one: many people would not mind getting extra income (especially unemployed/underemployed ones), so they will be motivated to learn more about Bitcoin if they hear that it gives some earning opportunities or relevant for entrepreneurship.
So now we need to find how exactly Bitcoin can help to earn money. Some ideas:
1. New businesses which are Bitcoin-related. Examples: BitVPS (buy VPS for Bitcoins), Satoshi Dice (gambling), mining-related services and goods, exchanges, etc. This is very cool, but probably not well aligned with word-of-mouth in general population.
2. People might get financial capital for their ventures on Bitcoin capital markets. Bitcoin gives people an opportunity to invest globally and anonymously, and such investments are usually not a subject to regulations, so they might give people more opportunities to raise capital without much of hassle associated with traditional capital markets. See examples below.
3. People can work from home and earn Bitcoins, the advantage is is easy to pay and it works globally and anonymously.
4. At some point we might see network effect where existing Bitcoin companies create demand for Bitcoin services. (E.g. a Bitcoin-related startup might prefer using BitVPS to avoid unnecessary conversions.)
Here are some examples of 'real world' businesses (not related to mining) which were funded via cryptocurrency capital markets (most of them via Litecoin Global, somehow):
1. [Tabita](https://www.litecoinglobal.com/security/TABITA): A small bakery in Mexico, uses money it got from capital market to buy equipment for more efficient baking.
2. [OPCU](https://www.litecoinglobal.com/security/OPCU): Hosting provider in Mexico, uses money to expand business.
3. [ART](https://www.litecoinglobal.com/security/ART): A small-scale ceramic art studio, used money to buy equipment.
4. [BitPride](https://bitfunder.com/asset/BitPride): They sell Bitcoin merchandise
(Also Esecurity/KoDDoS, Kenilworth, S.WIHEE, BitVPS.)
So, well, it works. I know at least first three companies I mentioned are more-or-less legit and pay dividends.
But currently Bitcoin capital market platforms are sort of PITA to use, and few people know about such opportunities, so this is an area which can be improved.
Anyway, here's what I'm getting to: just saying that Bitcoin is cool does not motivate people to start using Bitcoin. We need to motivate people by showing how they might be useful.
I think it would help if we start creating local groups interested specifically in Bitcoin business, where business might mean anything, like:
* selling something (e.g. used computers) for Bitcoin
* providing services for Bitcoin, like mowing lawns, teaching, fixing computers etc.
* funding new ventures via Bitcoin capital markets
* making new Bitcoin-related startups
* etc.
I am a software developer, and I'm thinking of making software which would help to organize such groups. It would work like:
* social network, i.e. users register, discover who of their friends are in club (i.e. are interesting in Bitcoin business) etc.
* marketplace/classified ads.
* reputation system
* escrow
* funding campaigns/capital market exchange
Software alone won't work, though, it is just a tool for people to organize communities. We also need to develop marketing strategies and materials which would engage people in optimal way, and to minimize possible problems, of course.
E.g. it's important to highlight that users help to bootstrap the local Bitcoin economy when they list their stuff in marketplace/ads section. If somebody has an old laptop, he might sell it for $50 via craigslist ad, but it might be not worth the effort. But if he sells that laptop for Bitcoins, he not only gets $50 worth of Bitcoins, he also feels like he have helped the local Bitcoin community, so this gives warm and fuzzy feeling too
.So it's important to list things even if they aren't likely to be bought, just so that people who join the club would see how many things they can buy with Bitcoin, I believe this will work against the argument is that Bitcoin is fake/plat/virtual money: if you can buy so many real, physical things locally, then it is definitely real money