4 ms·

How will crypto apps make money?

18 points by nsoman 9y ago

joeblow9999 9y ago
tldr; I don't know.
arisAlexis 9y ago
If they have utility tokens for example
websitescenes 9y ago
I think there's a middle ground. Cloud/distributed hybrid apps may be the ticket. I keep envisioning a traditional cloud application with appropriate parts of the data on the blockchain. Keeps users data safe, builds the network and diversifies the company all at once. Looking at it this way, any app could be a "crypto" app.
- nsoman 9y ago
  Hybrid apps are definitely part of the story. And if they have a revenue model already, they can keep it. I'm more anxious about new and "fully decentralized" apps like marketplaces.
  - websitescenes 9y ago
    My argument is that neither is mutually exclusive. Ethereum is evidence of that.
jondubois 9y ago
I think that eventually all cryptocurrencies will become interchangeable via distributed exchanges which adhere to the same protocol. The value of a cryptocurrency will be determined primarily by the kinds of people who own and deal with it as their primary method of payment.
- nsoman 9y ago
  Certainly seems like we're headed that way. Not sure how it solves the revenue model problem but it'll be simpler for consumers for sure.
advisedwang 9y ago
Surely apps can make money the same way anyone in the economy does: deliver a service that people are willing to pay for. The problem is that with bitcoin prices rising so much people are unwilling to actually spend it. The morale of the Pizza story is "hold on to your BTC, don't spend it". BTC with stable value and maybe light inflation would make it so that it actually functioned like a currency that could be spent without being foolish.
- arisAlexis 9y ago
  That's why probably btc will be the gold of 2020s and another crypto will act like currency
- nsoman 9y ago
  Agreed that BTC deflation makes it hard to spend. Making something people want is necessary but not sufficient to ensure a meaningful revenue model. I would be hesitant to start a decentralized company today planning to make money primarily on ads, data sales, or taking a cut as a middleman. I think there are other solutions available — just want to see us find them.

18 points by nsoman 9y ago

joeblow9999 9y ago

tldr; I don't know.

arisAlexis 9y ago

If they have utility tokens for example

websitescenes 9y ago

I think there's a middle ground. Cloud/distributed hybrid apps may be the ticket. I keep envisioning a traditional cloud application with appropriate parts of the data on the blockchain. Keeps users data safe, builds the network and diversifies the company all at once. Looking at it this way, any app could be a "crypto" app.

nsoman 9y ago
Hybrid apps are definitely part of the story. And if they have a revenue model already, they can keep it. I'm more anxious about new and "fully decentralized" apps like marketplaces.
- websitescenes 9y ago
  My argument is that neither is mutually exclusive. Ethereum is evidence of that.

jondubois 9y ago

I think that eventually all cryptocurrencies will become interchangeable via distributed exchanges which adhere to the same protocol. The value of a cryptocurrency will be determined primarily by the kinds of people who own and deal with it as their primary method of payment.

nsoman 9y ago
Certainly seems like we're headed that way. Not sure how it solves the revenue model problem but it'll be simpler for consumers for sure.

advisedwang 9y ago

Surely apps can make money the same way anyone in the economy does: deliver a service that people are willing to pay for. The problem is that with bitcoin prices rising so much people are unwilling to actually spend it. The morale of the Pizza story is "hold on to your BTC, don't spend it". BTC with stable value and maybe light inflation would make it so that it actually functioned like a currency that could be spent without being foolish.

arisAlexis 9y ago
That's why probably btc will be the gold of 2020s and another crypto will act like currency
nsoman 9y ago
Agreed that BTC deflation makes it hard to spend. Making something people want is necessary but not sufficient to ensure a meaningful revenue model. I would be hesitant to start a decentralized company today planning to make money primarily on ads, data sales, or taking a cut as a middleman. I think there are other solutions available — just want to see us find them.