Clubhouse is like a blackhole for your time, it’s no wonder why everyone in the valley are interested about it. And two things that fills at least 25% of my feed are NFT and BitClout.
Full disclaimer, I do not completely understand the concepts behind NFT and BitClout. I’ve not invested my time to look into the services. But in this post I’m going to write about what I feel about BitClout.
If you don’t know about what BitClout is, it’s a social network meets a crypto currency thing, and everyone on the platform has your own currency associated to your profile, and the value of that coin will depend on the influence you have on the internet. Well at least that is what I understands about the concept.
Recently I was in a room on Clubhouse that discuss the basics about BitClout, I just jumped in to learn more about BitClout, which I was genuinely curious.
Since it was a small room, I raised my hand and got a chance to speak. I wanted to clarify some of the questions I had about BitClout. So I asked these questions from the expert.
I’m just paraphrasing his answers off the back of my head, and not his exact words.
Me – When it comes to currencies such as the US dollar, you have the us government or the us economy backing its value. So who is backing the value of BitClout coins?
The expert answered that no one is backing the value of the USD, and the value is something that people have given it. So if people decided that the USD holds no value, then the value of the USD will become nothing.
The speaker also went on to say that they even though the values were backed by gold in the past, that has all changed now and no one backs the value of the USD.
If the value of the BitClout is reassured by the influence, who can one quantify influence?
For example Tom Brady can have a huge influence in the USA, but if you goto Africa, he might not have a bigger influence than what he has in the USA. So how can one quantify a person’s influence?
The expert argued that even though the influence changes from place to place, the value they can bring to the platform does not. For example if someone can put $1 million to his BitClout account then the value of his BitClout coin will be $1 million.
So as long as you can bring the value to the platform, the difference of influence you have across the world does not matter to BitClout.
There were several other people who asked questions, and there was another BitClout skeptic who asked some tough questions from him, and the expert left the room midway without properly closing the room.
I wanted to ask this question to further clarify the answer he gave to my question earlier, but I didn’t get the chance.
If there is a scammer like an inventor who is doing a scheme similar to Theranos. They will have influence, and the wealth to back a BitClout currency, and once the scheme is busted the values will become zero.
There are legal repercussions in real world for the schemes they did, the SEC, and the DOJs will sue for wire-fraud or some other charges. But what happens to all the people who lost their money on BitClout? Who is going to take action for that?
So that is the question that now I’m looking for answers. I’m not against new technologies and concepts, but I just find the concept behind BitClout very hard to grasp. There is something wrong somewhere that I can’t seem to grasp. But yes I can be wrong.
Paid to refer?
Back to all the Clubhouse rooms, it seems that according to some, the users who host all those rooms on Clubhouse promoting BitClout are paid by BitClout to get more users. That is quite possible, because of the number of rooms and even the people promoting BitClout doesn’t seem to know all the answers.
I would love to know your opinions and I’d love to see someone clearly explaining what’s really happening on BitClout.