Cryptocurrencies as startups.
I have been quietly observing the crypto-currency market for a while now, well almost 3 yeas. I have been rather loud at times, exposing scammers, liars and thieves in the crypto currency community. However, nothing has changed in this community for way too long..
The altcoin scene is in a stalemate and sliding of the board faster and faster each day. A few coins struggle to hold on, but they are mostly all downtrending.
The developers behind most of these coins have not done research on their markets, they have not evaluated and identified strenghts, weaknesses, opportunities and threats (SWOT) There is also no real business model surrounding the coins. This leads to a tremendous lack of transparency and thus trust. What they are doing? Why are they doing it?, What partners they are collaborating with, revenue streams, marketing channels. More about that later. Sure, its a habit of really smart people to share ideas with friends, fools and families. But that is usually with the intention of getting some feedback.
To get feedback, some people need to understand. In order for more people to understand, you need to visualize. In order to visualize a business model you need to copy and paste, tape and glue, erase and remove, change and optimize.
Use this as a framework: http://businessmodelgeneration.com/book
For cryptocurrencies, well, this demands an exceptional amount visualization for the general population. First of all you are talking about economics, secondly you are talking about cryptography and intangible money. People seem unable to grasp the concept of virtual currencies. You will end up banging your head against a wall of ignorance. Thus a business model describing something “unknown”, damn better describe this mysterious “unknown” to the people who are supposed to invest in this “unknown” Keep in mind, the company that invented the cash ATM went bankrupt because people did not trust the technology and could not grasp the concept of having computers taking care of their money.
I would advise coindevs and maybe the general entrepreneur, to follow this blog as I will touch some important aspects of Business administration that seem to have been left forgotten.
The following weeks, well, untill I get bored with this, and change priority to something more important, I will attempt to explain how to generate a business model. With a business model in hand, go face your investors next demand, a business plan, without fear!
Part one coming soon.