The beginning of December started with a visit to another conference, this time specifically oriented on the blockchain and crypto-currencies.
In a previous post, we’ve talked about Global traveling market tendencies from Websummit. This time, let’s cover traveling market potential with the cryptocurrencies applications.
The first point was very clear:
1. The next industry that blockchain will disrupt is Traveling
The most successful ICO’s are the projects that either developing blockchain technology, either disrupting Financial and Gaming industries. This is already happening because Bitcoin was initially associated with the payment tool and secondly because they’re online businesses with the similar target audiences.
Where will the focus go next? The most probable answer is — industries that cut inflated commissions and prefer one currency. This brings us to various ideas for Traveling market. The biggest challenge in comparison to Financial and Gaming industries is that traveling market is very physical and thus it requires a longer business development.
2. Commissions are painful
The most promoted thought that was mentioned in every speech.
Think of an amazing product Uber. The combination of great UX + Insurance + Reputation = takes 35% commission from every driver. This is crazy. The blockchain is willing to cut it up to only 1–5%.
Or Itunes music. Every creator get’s paid once in 2–3 months with a 35% commission. Why would any creator wait 2–3 month and get 65 cents from a download if (s)he could get 95cents immediately?
The same pattern applies here. What’s the point for a traveler to pay 20euro extra commissions for each booked apartment per night? And why would he pay 35% more to tourist agencies for the same city tour? The blockchain is definitely going to change this game with the new upcoming ICO products.
3. Currency exchange —unnecessary step
With a time, we’ll see an exponential crypto-currency adoption curve. Travelers will be one of the first to find out why are they so attractive. The question is not when and how, the question is either Governments will support it or not.
In fact, governments and VC’s are turning heads to the Blockchain already. Whereas Venture capitalists market is changing a lot already and VC’s are getting involved, the Governments are still very modest about their positions and opinions.
American VC investor Tim Draper, though, says next:
Governments are now in a competition in for us, citizens. They compete for where we live. Governments will have to become smarter and offer better services in order to win us. Smart Governments won’t be afraid of a blockchain, vice versa they will be relieved that somebody is doing a better job at tracking. They’ll have more time to give you a better insurance, education, medical care and so on.
In this battle, Fiat with governments will be competing for a stronger currency, they will need to make fiats better and more competitive toward crypto-currencies.
4. Other food for thinking:
Few more interesting thoughts from a conference.
1. One use case can build a whole new ground for more projects
“We’ve developed a platform for rentals, it included modules for integration with banking, signatures, taxes, invoicing. And then we realized that it was not just a Product that we’re building, but a whole new platform for governments.”
By Sami Hankonen
2. Helping to develop third world countries
“Starting your project with developing a business model and focus on economy is right, but without a mission and a human look at the users — you won’t succeed.
Get united with a big partner who’s sharing the same target as your project does. If your project uses Blockchain, you’re not the opponents, you’re probably only more powerful together.”
By Humaniq
3. Stop looking for cheap deals and discounts for future speculation purposes.
“The fact that everyone is looking for a good deal without even caring about the project — may play out really bad for a business and an investor itself. Every contributor has to realize that developing a working economy for a token — is a fundament. If the project grows really high, but fundament is weak — everyone equally fails.
Short term is not cool. Long term cannot be free or cheap. New economies has to have a strong economic strategy
As a contributor, try to avoid hype-driven ICO’s. Better look for an ICO with a good deals during private pre sales.
The right combination to look for is: real gem + great team + right cap:
By Mike Raitsyn from Icobox
