Cryptocurrency Exponential Growth From Double-Sided Referral Programs

The tactic of double-sided referral programs for exponential network growth is starting to get out.   Airbnb, Uber, Dropbox and many other companies are using it to build giant global networks…more here.

The question I have is: “Could cryptocurrencies use this tactic to build insanely big global networks?”

Here is why I believe the answer is YES, and the perfect mashup to bring mass adoption.

  • Cryptocurrency Network Attributes
    • To understanding why these referral programs will be so powerful, first you need to understand that currency is effective if more users have it and they use it. So as more people are referred, the currency gains in value. This creates a positive feedback loop so that more users will feel confident referring more friends.
  •  Social Proof
    • If I am able to get you a discount, and I get a discount in return then I am adding to the value of your life and have real monetary incentive to do so.
  • FOMO (Fear of Missing Out)
    • Social circles, groups of friends and family will not want to miss out on the next new thing and know that they can get a discount AND help out their friend get a few bucks as well.
  • Mutual Back Scratching
    • To help out a friend is cool, but if you get something in return of equal value then the deal is complete.  It’s a rare 100% perfectly fair deal, you both get the exact same thing (ie: %5 Off).  In getting this square deal, you strengthen your friendship because being friends got you a 1+1 =3 synergy that alone you could not get.

TLDR

Customer referral programs are a serious growth lever for many mainstream companies already, cryptocurrency can use these strategies to complement other investor acquisition tactics.

More on Simple Referral Program Setups to Get you Started: http://crowdsale.co/#refer

 

Discipline to Hodl Bitcoin for 100x Return

To 10x in a volatile market is great, but to exit at 100x takes some serious discipline.  I want to meet the man that had Bitcoin at ~$25 and is still holding at 100x today. Not the person that lost a computer and found it years later, instead…someone that had Bitcoin for all those years and could of sold at any time, but chose to hodl. For this person is either insane, or has a rare sense of conviction and can think long term.

To ignore the  short term fluctuation when Bitcoin has been declared dead over 150 times by powerful businesses and experts since 2011 would drive the common person insane.  The social pressures to sell out and ‘take profits’ would be overwhelming.

The best part about this person is that they probably will never ‘sell’ Bitcoin into a fiat currency, as when they are ready to sell, they won’t need to.  Bitcoin may come of age by that time and be a worldwide currency and store of value that people would prefer anyways to all the problems that fiat currencies are prone to. For example, no fiat currency has even been successful, all have failed.  It’s just a matter of time before your favorite fiat currency fails, will you live to see it?

Chris Mack writes:

According to a study of 775 fiat currencies by DollarDaze.org, there is no historical precedence for a fiat currency that has succeeded in holding its value. Twenty percent failed through hyperinflation, 21% were destroyed by war, 12% destroyed by independence, 24% were monetarily reformed, and 23% are still in circulation approaching one of the other outcomes.

The average life expectancy for a fiat currency is 27 years, with the shortest life span being one month. Founded in 1694, the British pound Sterling is the oldest fiat currency in existence. At a ripe old age of 317 years it must be considered a highly successful fiat currency. However, success is relative. The British pound was defined as 12 ounces of silver, so it’s worth less than 1/200 or 0.5% of its original value. In other words, the most successful long standing currency in existence has lost 99.5% of its value.

Given the undeniable track record of currencies, it is clear that on a long enough timeline the survival rate of all fiat currencies drops to zero.

And Jeff Clark points out:

History has a message for us: No fiat currency has lasted forever. Eventually, they all fail.