While most people, businesses and Ad Agencies are still trying to grasp the concept and technology of Bitcoin or accept Bitcoin payments and its underlying blockchain technology that makes cryptocurrencies (700+ cryptocurrencies).
I think Ad Agencies, especially those with global offices and operations should become more progressive and innovate using and accepting Bitcoin payments in 2018. Because, I believe this Bitcoin phase is basically the same as the ‘Dot com’ Bubble in 2000.
I was in San Francisco in 1999, the early days of Internet Marketing and working with companies like: Webvan.com, Pets.com, eToys.com, Go.com, Garden.com who later shutdown when the bubble burst.
My key learning from that period was that there were some amazing business ideas and companies created, BUT many of the poorer ideas and companies failed, while those who learned from the experience thrived.
All the long-term winners and businesses that survived had sustainable business models. And, any company that loses hundreds of millions in the first 12 months of launching, probably will have great ongoing difficulty finding new investors too! (Let alone keep key staff from leaving too!)
I worked on Webvan.com and the company I was heading was the AOR and well remember the real roller-coaster ride for its November 1999 IPO. Webvan.com raised $375 million and its shares traded at around $30. The company was valued at $1.2 billion. But that was its peak.
In retrospect, I realize it had been too ambitious with its expansion plans e.g. after it raised one billion in investment, it endeavored to grow far too fast. In fact, they tried to expand their services, initially with their B2C services to eight cities in just a year and a half. This was the start of the collapse, and we subsequently shifted to a far more cost-effective and cost-efficient B2B model. BUT, by that time, the money was shot and investors were jumping ship!
I also remember, companies worth billions when they IPO’d, then went to zero. Good companies were dragged down with them: Cisco lost 86% of its market cap. Amazon stock fell from $107 to just $7.
And, the NASDAQ fell from a high of 5,132 in March 2000 to just 1,470 a few months later, as giddy investors suddenly sobered up after figuring out that web businesses with little or no revenue were fundamentally worthless. I think that’s exactly what we are witnessing with Bitcoin’s recent and first major drop in value.
BUT, like all well run, smart companies, I am sure the best Cryptocurrencies groups will rebound and even outperform the existing Internet Stars of today over the coming decades. Just remember that Jeff Bezos kicked off in 1994 working out of his garage and by 1995 had grown and scaled Amazon to get an $8 Million round of funding from Kleiner Perkins and then, took them public.
And, as you have witnessed, his business, based on sound fundamentals, innovation, disruption and exceptional customer experience has now grown to a company valued at potentially $1.6 Trillion dollars by years end.
BITCOIN PRICE CHART WITH HISTORIC EVENTS
I believe that the chart below for the past twelve months of Bitcoins growth and acceptance closely mirrors my experience from living in San Francisco during the original Dot Com days. And, I suggest, that this recent drop in some of the value of Bitcoin and other cryptocurrencies is only going to be a short-term correction, like the one I’ve witnessed with the entire digital market since the Internet Age commenced.
I see and feel the same exact similarities and that’s why I think every person must consider investing in it, using it and better understanding its global potential. But, I see the major advantage of the cryptocurrencies over the quasi monopolies of Facebook, Google, Apple and Amazon – they would be less vulnerable to manipulation and fraud; identity theft would be far less common; advertising dollars would be distributed across a wider range of media properties.
Additionally, Shark Tank star and Dallas Mavericks owner Mark Cuban has been on Twitter tweeting to his 7.69 million followers about bitcoin on a regular basis, but says that he believes Bitcoin is currently in a bubble, he stated ‘I just don’t know when or how much it corrects’.
The bitcoin price is up roughly 10X over the past two years, so it is understandable why some people believe it is overvalued. If you do a Google search on ‘Bitcoin Bubble,’ you will find nearly 1,310,000 results as at the time of writing!
Picture: Bitcoins stunning accelerated growth over the last few years!
But are they naysayers correct? Is it too late to get on board the bitcoin rocket for both the public and even Ad Agencies?
Only time will tell, but I suspect that the price of bitcoin will climb many multiples higher before reaching a peak. Just like: Facebook, Amazon, Google and others have done over the last two decades.
I have yet to see a mania phase, in fact, less than 5% of the investing public owns any bitcoin. The vast majority still have no idea what blockchain technology is or how to acquire bitcoin.
(Note: A blockchain is a decentralized and distributed digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network.)
While the price of a Bitcoin surpassed that of an ounce of gold for the first time earlier this year, the total value of gold is still 200 times the value of bitcoin. Even if we take into account the value of all cryptocurrencies at around $100 billion, Apple is still worth 4 times this number and the gold market is valued at more than 80 times all cryptocurrencies combined!
Additionally, Blockchain technology is being hailed as the solution to a wide variety of use cases across all private and public sector segments, promising process and business model innovation, lower costs, greater efficiencies, and fewer errors while also eliminating fraud and improving auditability.
So, if you have been working in the tech industry, watching the business and tech landscape over the past two decades – why wouldn’t any educated, innovative and leader look to seriously move his Ad Agency or business look to become more attentive and involved with cryptocurrencies moving forward?
Picture: Pinpointing where Bitcoin is among the four phases by Dr. Jean-Paul Rodrigue, who became famous for creating the “Phases of a Bubble” chart.
In fact, Bitcoin has attracted significant attention in recent months from entrepreneurs, journalists, consumers, merchants, and government entities worldwide. eBusiness executives, especially at banks and retailers, seem to be puzzled by Bitcoin, the first crypto-currency, a new method of value exchange via the Internet, and are struggling to understand its value to and potential impact on their businesses BUT, that’s primarily because they can’t control this new currency like they have traditionally done since the beginning of time.
These nine major reasons for accepting this innovative virtual currency:
- Lower transaction fees and bank payments.
- Fraud prevention.
- Provide a better way to record and prove asset ownership.
- The ability to get paid quickly.
- Fraud-free election results.
- Ease of accepting international payments.
- Irrefutable authenticity verification.
- Blockchain could be bigger than the Internet.
- And, connected devices using smart contracts to liaise.
I firmly believe that customers are the new market-makers e.g. Advertising and Marketing agencies, reshaping industries and changing how businesses compete and win and this should be a priority in 2018!
Shouldn’t you start by investing at least 40-50 hours reading and educating yourself about Bitcoin, Blockchain and crypto-currency and start feeling more comfortable with this area? Don’t be afraid and jump in and learn and absorb all the information today before the next liftoff happens! This is my fair warning! Remember, you don’t need to be an expert before you start accepting BITCOINS today!
Will you do me a favor? When you have some massive new business with your social media marketing efforts in 2018, can you please share your success story with me at firstname.lastname@example.org or simply drop me at line at: geoffdeweaver.com
If you need additional help in using social media marketing for new business, please email me to set up a time to discuss or request my guide and best tips for success!
To your social media marketing and New Business and Agency growth in 2018!
ABOUT GEOFF DE WEAVER:
Geoff is passionate about the art of influence, new business and presentation. His techniques can help you communicate and lead more effectively. As a global marketer, coach and workshop leader, Geoff makes mastering these advanced skills an enjoyable and achievable process. His sound business acumen and results driven approach have made him a trusted business advisor to many of the world’s leading organizations and their senior executives.
Geoff works with business leaders to ignite their courage and confidence so they can step up and step out in the way they engage people and communicate their leadership style. He is in high demand with CEO’s, CMO’s, directors, corporate executives and senior managers for his expert counsel and guidance in creating strategies for face-to-face communications and integrated global campaigns that are engaging and delivered with confidence and passion to key stakeholders.
You can also view other articles on New Business & Growth here:
- WHY CHEMISTRY MATTERS WITH WINNING NEW BUSINESS: http://geoffdeweaver.com/why-chemistry-matters-with-winning-new-business/
- WINNING NEW BUSINESS IN 2018: HTTP://GEOFFDEWEAVER.COM/WINNING-NEW-BUSINESS-IN-2018/
- HOW TO PITCH AND WIN GLOBAL CLIENTS AND BRANDS: HTTP://GEOFFDEWEAVER.COM/HOW-TO-PITCH-AND-WIN-GLOBAL-CLIENTS-AND-BRANDS/
- A SOCIAL MEDIA STRATEGY IS GREAT FOR NEW BUSINESS FOR ADVERTISING AGENCIES: HTTP://GEOFFDEWEAVER.COM/A-SOCIAL-MEDIA-STRATEGY-IS-GREAT-FOR-NEW-BUSINESS-FOR-ADVERTISING-AGENCIES/
- THE ART & SCIENCE OF PERSUASIVE NEW BUSINESS PRESENTATIONS: HTTP://GEOFFDEWEAVER.COM/THE-ART-SCIENCE-OF-PERSUASIVE-NEW-BUSINESS-PRESENTATIONS/
- NEW BUSINESS PITCHES – NO PLACE FOR BEGINNERS: HTTP://GEOFFDEWEAVER.COM/NEW-BUSINESS-PITCHES-NO-PLACE-FOR-BEGINNERS/