In this post I’m going to cover the topic of is BitClout worth it…or is it a scam?! I actually invested $500 in BitClout recently and want to talk about it a bit more. This is NOT financial advice – this is just for informational purposes only. Make sure you do your due diligence!
So if you’ve read my last post, I’ve been diving deep into BitClout and learning more about the platform. BitClout lets you invest in your favorite influencers or people who you believe have a strong potential for success in the future. It’s basically like a stock market in which you invest in people.
For example, if you invest in a new YouTuber you really like and this person eventually rises to fame, his creator coin price should dramatically increase, which means your investment would soar. However, if this person does something inappropriate and his reputation tanks, his creator coin price may drop in value and you may lose money.
Though the concept is intriguing, many people are apprehensive of the platform, and to be fair I understand their concerns. Currently there’s no way to truly withdraw your Bitclout into Bitcoin, and then into USD (yet). So the fact that you can just deposit a bunch of money on this platform without being able to take it back out is concerning. At the same time, the fact that so many users are still creating accounts and investing KNOWING this makes me feel there is possibility for this platform to work. So is BitClout worth it? Let’s get into this today.
PS if you want to watch the video version of this it is here:
Is BitClout Worth it or is BitClout a Scam?!
I’m going to list out my different points about the platform, and why I’m still investing in it.
1. BitClout is Either Going to be a Huge Hit, or a Huge Flop – No Middle Ground!
I believe that with BitClout there’s either the extreme of massive success or massive failure. That’s why I’m not investing a ton of money, but I’m still putting my foot in the door. The idea of being able to invest in your favorite creators is revolutionary and never truly done before or executed on correctly.
In the past, all you could really do was subscribe, support via merch, or donate on Patreon to show support for an underrated influencer.
But with BitClout, imagine being able to say that you invested in someone’s potential when their creator coin was worth $5, and now it’s worth $50,000! If BitClout allowed you to withdraw, you would make a TON of money, and you would also have some legit bragging rights right there.
2. Their Marketing Strategy is Ballsy but It’s Working
The fact that the founders of BitClout put 15,000 Twitter influencers on the platform without their consent is extremely ballsy but it makes sense. They’ve basically told these influencers that if they tweeted the public key BitClout provided them, it would verify their profiles and they would now have access to the millions that may be wrapped up in their creator coin. But using these names on the platform without consent seems risky / wrong.
But at the same time, they’ve gotten a ton of press with this strategy.
The founders know that the platform will only do well when everyone’s onboard with the concept. Therefore, as more and more larger, trustworthy influencers weigh in positively, the trust of the platform will go up, and the price of everything would go up because more people would invest. At the same time, if Elon Musk or other reputable influencers / founders decide that BitClout is not a good investment, it could tank the whole platform as well in my opinion.
Here’s a good explanation of the platform:
My initial reaction to Bitclout – explained in 80 seconds https://t.co/mInYYRXbuT
— Shaan Puri (@ShaanVP) April 1, 2021
3. There Are Solid Names to Back the Platform
Even though the founder goes by the pseudonym “DiamondHands” (which can feel a bit shady), there are notable investors like Andreessen Horowitz, Social Capital, Coinbase Ventures, Winklevoss Capital and Reddit co-founder Alexis Ohanian backing the platform (according to TechCrunch). That makes me feel a lot better about it!
4. The Biggest Concern: NO WITHDRAWAL?! Will They Open This Up?
As mentioned previously, you can sell your creator coins, but you can’t convert your Bitclout into Bitcoin just yet. This is the reason why most people are asking “is BitClout worth it” and “is BitClout a scam”?!
I have a theory that they’re doing this so that it doesn’t become an insane pump and dump game that becomes a total mess. The current members on the platform must truly believe in the concept and long term play of it if they know they can’t withdraw funds.
Another thought is that the “no withdrawals” created for a lot of press. I believe the mystery of the founders and the site created a lot of buzz for BitClout.
Imagine opening those floodgates. Many people are already talking about the platform, but it’s going to get SO much press once people are exchanging their BitClout for money. It’s only going to get exponentially crazier once they allow people to convert their coins into real money.
They say be greedy when others are fearful, so I’m just going to do that for now (again – not financial advice, just information).
5. If Anything, We’re Early to the Game
We are currently early to BitClout. Don’t quote me on this, but after some research it looks like there are about 30,000 unique users so far as of April 2nd, 2021. It feels like there is a lot of potential for upside. We’re early!
6. BitClout Seems to fit the Current Landscape
BitClout seems to fit the current landscape especially because of 3 things:
- The Creator Economy is Booming – According to Influencer Marketing Hub, more than 50 million people worldwide consider themselves creators. More and more people are starting to watch creators over traditional media, and more and more creators are able to make a living doing what they love! BitClout will make it easier for creators to monetize what they’re doing – they’re the ones making all the content and making these social platforms big, so why SHOULDN’T they be rewarded?
- Crypto is Booming – BitCoin and other cryptocurrency has shot back up lately and it seems more and more people are onboard. In my opinion, BitClout may have more of a chance just because investors who missed out on the crypto wave know the pain of not getting onboard earlier!
- People are Tired of Censorship on Social Media – It’s become more and more common for people to get banned on social media or have their posts get taken down. Thousands and thousands of popular Facebook groups have been eradicated from the platform. People are getting tired of all the censorship, and BitClout is trying to be a platform that is censorship resistant – quoted from Decrypt.co: “Bitclout’s node structure also means it will lack centralized moderation policies like those found on platforms like Twitter or Facebook.”
7. Future Concern: Influencer Mental Health?!
If this platform actually pans out, I do worry about the mental health of influencers. Not only are people equated to follower counts which is already stressful enough, now they have actual investors backing on their potential which could cause a lot of burnout. As an influencer, it may feel difficult to stop working as to not let people down. It could feel like a lot of pressure for content creators, and as a content creator myself this is something I have to be wary of.
Being Transparent – Here’s My Current Portfolio
To be fully transparent here’s my current portfolio below (as of 4.2.21). Obviously the amount I’ve invested is very small ($500 total) just because I’m remaining cautious. This whole platform could be a flop, so you have to take that into consideration when investing into it. What are you comfortable losing?
I’ve only really made gains on my own coin plus Khang’s coin so far, so my current portfolio is at about $730 or so (I have around $46 I didn’t invest here). Feel free to invest in my creator coin if you want to.
When I’m looking for people to invest in, I’m looking for people who are bullish on the platform and have signed up, people who are undervalued or underrated, and people who have low (or no) founder reward percentages. I don’t like when people put crazy high founder reward percentages! What that means is people who founded their own coin can add a percentage that they receive from your purchase. E.g. Ryan Pineda’s founder percentage seems to be around 50% so I have already lost 50% from investing in him. I still invested in him though as I do feel his coin could go up, but just take that into consideration!
Conclusion
So is BitClout worth it? Or is BitClout a scam?!
I think this is up to you to decide, but I hope my write up was interesting and helps you form your own opinions.
I’m getting my feet wet with BitClout but I’m definitely not putting all my eggs in one basket. Please do your due diligence, because you never know if the platform will flop or not. That’s why I’m only investing a number that I’m comfortable with losing, but that allows me to have fun on the platform. I’m already having fun investing in people and using it like Twitter, making new connections on BitClout. So just have fun, and don’t go too crazy :). And again, if you want to check out my creator coin, you can visit my page here.
Also, if you’re trying to buy into BitClout here are some instructions on how to do it:
You can buy BitClout currency with Bitcoin:
- You need to have purchased Bitcoin. I have Bitcoin on Coinbase, and it’s good because of its efficient and easy-to-use user interface. Sign up on Coinbase through my link for $10 free Bitcoin.
- Once you buy Bitcoin, make a BitClout profile here: http://bitclout.com/ (you can have your own coin as well!)
- Now, you can buy Bitclout with Bitcoin by sending Bitcoin to your specific address –> visit this URL for the exact steps and address
- After you’ve transferred Bitcoin over, you can buy BitClout directly on their website.
- Once you’ve traded for BitClout you can use it to buy your favorite creator’s coins!
And to repeat: this is not financial advice and is just for informational purposes only!
Comments 1
I’ve successfully made 3 withdraws from BitClout. It is possible if you know where to look.