BitClout is a cryptocurrency-based social network that allows users to invest in their favorite creators and influencers. At its very basic level, BitClout allows you to see inside someone’s success for having risked capital early on.

Still a bit confusing, I know.

Take professional sports for example. LeBron James, arguably the best basketball player in the world, was signed to the Cleveland Cavaliers fresh out of high school in 2004.

His rookie salary was set at $4 million before he played a single game. The Cavaliers bet that Lebron James would bring immense value to the team and would lead them to a championship, which he did twelve years later.

Imagine if you as a public citizen had the opportunity to purchase the Lebron James “stock” in 2004. Imagine how much it’d be valued today.

That’s the problem BitClout is looking to solve.

Modern-day investment avenues like the stock exchange or real estate pose many barriers to entry with an immense learning curve.

With currency integrated into a social media platform, everyone becomes a commodity and can leverage their intrinsic value directly based on the people who support them.

How does it work?

The layout of the platform is akin to Twitter with its 280 character limit and “reclout” feature. Even the user profile is eerily similar to Twitter.

However, unlike Twitter or any other social media platform, BitClout is not an app. You won’t find it on Google Play or the App Store.

BitClout itself lives on the internet (as opposed to in a privately-owned server), and therefore, it cannot be shut down.

The website www.bitclout.com allows users to very easily make an account.

In order to make a profile and post on the site, you need to either buy some BitClout or get some for free by verifying your phone number.

A few key points to understand before you create an account:

• BitClout operates on a blockchain
• Dollars invested are transformed into their native currency, BitClout
• Not all celebrity accounts are active

Operating on the blockchain

Every action on BitClout is part of the public blockchain. Posting, liking, and following are all traceable.

The blockchain is a public record of transactions that anyone can view and verify. For example, every time someone sends or receives Bitcoin, it is recorded in the Bitcoin blockchain.

Almost everything we do in our daily lives is done online, from shopping to investing. And every online transaction requires a bank or a credit card company.

The blockchain removes the middleman.

Any transaction can happen without added fees and complexity that often comes with them.

With blockchain technology, payments can be more secure than those made with standard debit or credit cards. Payments made with Bitcoin, for example, do not require sensitive information from you. That means your private information is at almost zero risks of being compromised and your identity cannot be stolen.

For BitClout, operating with blockchain technology allows for the same protection as well as it being fully open-source with no company behind it.

BitClout has its own currency

Unlike the stock market, on BitClout you are not trading shares for any real dollars. The network is powered by its native currency, called BitClout, which you can only purchase with Bitcoin.

You use real dollars (ie. USD) to buy Bitcoin, then use Bitcoin to buy BitClout. To top it off, in order to actually invest in an account, you will need to use your BitClout money to purchase creator coins, which I’ll come back to later on.

You can buy BitClout on their website with Bitcoin and the price is set to double after every one million BitClout sold. Right now there is no way to sell back into Bitcoin, nor withdraw.

There is technically no cap to the amount of BitClout that can be minted (fancy term for creating a new coin), but the BitClout team says it should be under 19 million in the long run.

Creator coins

Every profile on the platform gets its own “creator coin,” with the price of the coins fluctuating based on the buying and selling of that coin.

The company says, “if you think a coin is going to become more popular then you will probably make money if you buy it early.”

Currently, creator coins offer no utility besides speculation. In the future, it can be tied to opportunities provided by the creator like membership rights or NFTs.

The price of each creator coin is determined by a certain formula or “curve.” This formula essentially calculates the number of BitClout coins that your creator coin is worth.

Price in BitClout = .003 * creator_coins_in_circulation²

Price in USD = .003 * creator_coins_in_circulation² * bitclout_price_in_usd

The formula basically shows the more people that buy your coin, the faster the price shoots up. Creator coins become naturally scarce. At some point, one creator coin could be worth millions.

The table and graph below show what the creator coin price curve looks like as a function of how many creator coins are in circulation for a given profile.

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Source: https://bettermarketing.pub/is-twitters-crypto-doppelganger-a-bust-or-the-next-big-social-network-702b7a8eef42?source=rss——-8—————–cryptocurrency