How blockchain technology will affect marketing
“Because of the technological innovation that blockchain is, we now have the ability to transact items of value between two parties where no intermediary is required, and we can do that with less costs, lower risks, and can do it faster. That means any business where their value proposition is based entirely or mostly on being a trusted third-party intermediary… we're looking at a future where none of them are required.” says Jeremy Epstein, CEO at NeverStopMarketing.
Bitcoin, a digital currency created over a just a decade ago, has risen from $1000 to above $9000 at the years beginning. Some are calling Bitcoin a fad, citing extreme volatility and past security breaches. Bitcoin, along with the next largest digital currency Ethereum have a combined market cap of $75 billion. In comparison with the total global asset market of stocks, bonds and loans of nearly $300 trillion, the digital currency market cap is tiny.
Critics also often argue that Bitcoin lacks intrinsic value. However, Fiat currency as issued by nations is backed only by a government’s good faith, when in the past it represented a fractional interest in gold. Fiat itself was once a new type of currency facing skepticism as it was deemed ephemeral and detached from much more tangible items like land, gold and armies.
In the article, Blockchain marketing: how the technology behind Bitcoin could change marketing, Scott Brinker explained why blockchain technology will have impact on marketing and what marketer can do now to begin preparing.
Bitcoin users don’t need bank account and don’t need to trust their government. For many in the world, Bitcoin is an alternative to many unreliable banks and financial systems. Bitcoin offers a disruptive technology that promises to supplement and even supplant currencies and financial institutions, allowing seamless transactions without bank, empowering individuals and most importantly, weakening the hold of state and corporations. How bitcoin can be applied to marketing? For the basic starting point, accepting bitcoins for payment highlights that your company is forward-thinking by embracing emerging technologies. It canalso be useful for tracking user data and insights. With increasing concerns about privacy, blockchain gives marketers a way to use anonymised data sets for marketing activity while reducing the risks of exploitation.
Bitcoin’s very unique appeal are its dual qualities: it is both designed as a currency that people can transfer directly, peer to peer without banks and a store of value. It is winning against Fiat and Gold and that is no easy feat. It solves the inflationary nature of Fiat and improves the portability issues of Gold. Bitcoin achieves this by limiting the amount of the total Bitcoin that will ever be in circulation and also with block chain technology, creating a decentralized system that is hard for any single entity to manipulate or control it. It is easy to see why more and more retail and institutional investors can no longer ignore Bitcoin as a part of their asset.