The Next Big Crypto Cycle - Bitcoin Market Journal

[ad_1] <div>This week we launched our new <a target="_blank" href="https://www.bitcoinmarketjournal.com/introducing-the-bmj-reward-token/" rel="noopener">Bitcoin Market Journal Reward Token</a>, kickstarting the subsequent wave of progress for the crypto trade. Right here’s the way it works: our <a target="_blank" href="https://www.bitcoinmarketjournal.com/register/blockchain-believers/" rel="noopener">Premium members</a> now get 10 BMJ tokens deposited to their crypto wallets every month, which they'll redeem for real-world rewards you possibly can’t get anyplace else. (<a target="_blank" href="https://www.bitcoinmarketjournal.com/rewards" rel="noopener">Check out the rewards here</a>.) On <a target="_blank" href="https://www.bitcoinmarketjournal.com/introducing-the-bmj-reward-token/" rel="noopener">Monday </a>I defined our mission at BMJ: to onboard the subsequent 100 million crypto buyers. The BMJ Reward Token just isn't an funding — it’s a loyalty program — nevertheless it does get individuals launched to crypto within the best potential approach, and encourages long-term loyalty. On <a target="_blank" href="https://www.bitcoinmarketjournal.com/how-to-earn-and-burn-bmj-reward-tokens/" rel="noopener">Tuesday </a>I defined how BMJ is completely different from different tokens: it’s solely minted when actual income is earned from our Premium membership. We’ve developed a brand new metric – Actual Income Earned (RRE) – which provides the crypto trade a brand new degree of transparency and belief. On <a target="_blank" href="https://conta.cc/3WN3NSp" rel="noopener">Wednesday </a>I defined the journey to launch the BMJ token, together with why we selected to construct instantly on Ethereum – not one other blockchain or L2 answer – even paying the gasoline charges for members, so you possibly can have the enjoyment of discovering new tokens in your pockets every month. On <a target="_blank" href="https://conta.cc/3igqgZ6" rel="noopener">Thursday </a>I talked concerning the qualities of fine loyalty packages, and the way we will adapt these to the crypto trade. We talked concerning the “Loyalty Flywheel,” and the way re-investing in additional advantages results in extra enterprise — constructing a crypto neighborhood alongside the way in which. Immediately I’ll speak about why that is the beginning of the subsequent nice crypto cycle, and why the BMJ Reward Token is uniquely positioned to paved the way. When you’re a Premium subscriber, maintain on: you’re a part of one thing actually good.The Collapse of Belief and the Rise of Loyalty It’s no secret that many view the crypto trade with suspicion. 2022 didn’t assist. Meltdowns. Implosions. Bankruptcies. And the continued trial of <a target="_blank" href="https://www.bitcoinmarketjournal.com/in-defense-of-sam-bankman-fried/" rel="noopener">Sam Bankman-Fried</a>, which can devour the information media for 2023 and past. (Prediction: there can be a Netflix documentary.) How can we, as an trade, regain belief? The primary approach is to tie tokens to actual worth. Aside from stablecoins, most tokens are backed by nothing however individuals’s perception. Throughout market panics, we’ve seen that perception is the very first thing to go, quickly adopted by token value. Stablecoins had been an actual innovation, as a result of they’re backed by actual {dollars} — a minimum of, the nice ones. Stablecoins have flourished because of this, and can probably be the primary crypto asset to be regulated and correctly built-in into the standard monetary system. (One other prediction.) The BMJ token (and, we hope, different crypto loyalty packages to comply with) are solely minted when actual income is obtained. That is completely different from stablecoins — we’re not holding the cash in reserve — nevertheless it mirrors loyalty packages immediately, like frequent flyer packages or Starbucks Rewards. The second strategy to regain belief is to offer tokens actual utility. Make them do one thing. Traders are fixated on tokens that simply sit in a pockets, hoping that “value go up.” The BMJ Reward Token is one thing completely different: you possibly can redeem it for real-world rewards. This offers reward tokens an unlimited benefit over different crypto tokens. If designed appropriately, you don’t dwell below a black cloud of worry that they might be an “unregistered safety.” Loyalty tokens are digital loyalty factors, interval. Similar to Delta SkyMiles. Similar to Starbucks Rewards. The distinction is utility: they’re not simply tokens that you simply purchase, hoping that the worth will enhance, based mostly on the efforts of others. They’re tokens you might be awarded as a paying buyer, which you'll be able to acquire and redeem for beneficial real-world rewards. Peace out, <a target="_blank" href="https://www.investopedia.com/terms/h/howey-test.asp" rel="noopener">Howey</a>. This. On blockchain. Actual Rewards Value Cash Let’s take a typical bank card reward program: you earn one reward level for each greenback spent. Then you possibly can redeem these reward factors without cost flights, lodge stays, and even — gasp! — money again. These rewards, after all, value actual cash. Once more, with crypto loyalty packages, we’re constructing actual companies that absorb actual income to make actual services. This implies all the gorgeous, high-quality merch on our rewards web page prices actual cash … identical to bank card rewards for the bank card firm. So the place does this cash come from? For bank card corporations, it’s hidden within the curiosity and charges. The silly shoppers who don’t repay their bank card payments in full every month pay curiosity, and their curiosity pays to your bank card rewards. On your native espresso store, they've sufficient revenue margin inbuilt that they'll afford to offer you a free espresso after you’ve purchased ten (you most likely purchased ten pastries or muffins, too). For individuals who are constructing their very own crypto reward packages, you possibly can resolve the “actual rewards value actual cash” downside in a number of methods:You may mark up the preliminary product, or (extra probably) the reward product, so you continue to make a revenue; You may provide digital downloads, that are basically free to meet; You may allocate among the value as a advertising expense (good loyalty packages will scale back buyer churn and enhance buyer stickiness); You may work out what share of reward tokens will go unredeemed, and value accordingly.On the subject of unredeemed tokens, right here’s a beneficial information level. Once we did our preliminary token mint for the BMJ token, we discovered there have been quite a few customers who by no means attached their MetaMask wallets. They paid actual cash for a Premium membership (RRE), however by no means claimed the tokens. We’ve minted these tokens — some 17,680 — again into the grasp pockets, which we’re calling “BMJ Reserves.” The thought is that these can probably be awarded to Premium members sooner or later. It’s a struggle chest that lets us make investments again into this system, to make the loyalty flywheel go even sooner. Bear in mind: the purpose of reward packages is to extend buyer loyalty. Corporations should view them like advertising or community-building efforts: the long-term advantages are elevated buyer happiness, decreased churn, and extra gross sales. (Extra advantages = extra enterprise.)The Nice Crypto Cycles While you’ve been on this trade some time, you see that it goes by cycles. The best strategy to see these cycles is to have a look at the worth of bitcoin:However what’s taking place behind the scenes seems to be one thing extra like this:That’s as a result of every downturn within the cycle washes out the weak spot. It eliminates the gamblers and the degens, and it opens the doorways for recent constructing. The downturns will not be enjoyable, however they’re beneficial as a result of they power us to concentrate to what actually issues. To innovate. To hustle. To search out new options. Up markets are for speculators, however down markets are for builders. To simplify the crypto market cycles, it will look one thing like this:Each down market in crypto gave delivery to some new innovation that fueled the subsequent up market, whether or not that was good contract platforms, DeFi, or NFTs. The following wave of progress, we imagine, can be fueled by reward tokens.I’ve laid down the rules we’ve used to create our BMJ Reward Token, with the hope it is going to present a mannequin for future initiatives to comply with. Ideas like transparency and belief. Actual income earned. Actual-world rewards. And above all, pondering of blockchains like companies. Because of all our Premium subscribers, particularly those that have been with us since Day 1. The longer term goes to be extra rewarding than any of us can think about. </div> [ad_2] <a href="https://news.google.com/__i/rss/rd/articles/CBMiTGh0dHBzOi8vd3d3LnN0bC5uZXdzL3RoZS1uZXh0LWJpZy1jcnlwdG8tY3ljbGUtYml0Y29pbi1tYXJrZXQtam91cm5hbC82MDEyODPSAQA?oc=5">Source link </a>