Bitcoin. No matter if you believe in its bright future or feel skeptical about it, you definitely heard about this cryptocurrency. You might even have invested in it. For affiliate marketers the interest towards Bitcoin is not limited to investment only. For them it’s a ‘big time’ business opportunity.
With this in mind, we’ve put together this article where readers will find out:
- What Bitcoin is about, in a nutshell
- Is its current high price more than just result of hype
- A few things about Bitcoin and crypto traffic
- Will Bitcoin fever influence affiliate marketing world
The first successful cryptocurrency. How Bitcoin came to life.
On the last day of October 2008, a document appeared on bitcoin.org website, describing the core of this newborn cryptocurrency. The document was titled “Bitcoin”. Its creator (some say it was a group of people) introduced himself as Satoshi Nakamoto.
Shortly after, he sent a description of his currency in a letter where Nakamoto described properties of this new electronic monetary system: protection against fraudulent transactions, independence from any specific organizations and the possibility of anonymous use.
At first bitcoins were distributed very slowly. The participants could only generate virtual money on their computers and then transfer it directly to each other. The approximate cost of cryptocurrency was calculated primitively: the average power consumed by a processor was multiplied by the cost of electricity in the US and then divided by the number of generated bitcoins.
In October-December 2009 the bitcoin cost ranged between 700 and 1,600 coins for $1 USD. In 2013 one Bitcoin was worth $1,000.
Much ado about Bitcoin recently. Just hype?
So why so much speculation about Bitcoin in recent months. It probably has to do with the fact, that one coin went from around $1,000 in January last year to over $11,000 in January 2018 (as of this writing), which made literally all other possible investments look… well, boring. No other instruments come even close to cryptocurrency, including investing in Kickstarter projects, companies or real estate.
Of course, this wave of success brought to life Bitcoin’s competing cryptocurrencies. Because of it we now have Ethereum, Ripple, Cardano, Litecoin, etc., all of more or less similar nature. But Bitcoin has a strong advantage of being the first and most notorious cryptocurrency. Some buy it for fun, more take things pretty seriously and a few sell everything they own to purchase more coins, creating additional hype.
It looks like this current rise of cryptocurrency is more than just result of hype. The way we see it, Bitcoin’s major appeal comes from the fact that it can bring huge profits. A person who invested $1 eight years ago will have earned thousands now. People turned out to like the idea of a currency that does not physically exist. In its core, it is a mere set of strings of numbers, fully decentralized and anonymous.
Bitcoin adapts easily bypass banks, credit card companies, fees, regulations, cutting out the middlemen.
Bitcoin and crypto traffic.
For affiliate marketers, cryptocurrency boom is a great opportunity to make more money. The industry is already full of Bitcoin offers. Interest towards cryptocurrency keeps ascending, bringing higher involvement rates and more conversions.
Let’s keep in mind though, that cryptocurrencies are highly volatile. In just a couple of days value of Bitcoin has dropped from about $14,300 down to $12,000 and then to $10,000 (again, as of this writing) and so did people’s interest in it.
For affiliates, this may be a reason to take a pause with crypto traffic and focus on something else. So ups and downs, like a roller coaster.
Will Bitcoin fever influence affiliate marketing world?
In the wake of cryptocurrency hype (or rather in the middle of it), we see some tendencies that will influence performance marketing industry. Besides the avalanche of crypto offers, we can speak of:
- Affiliates rising payout expectations if they have quality crypto traffic.
- Some CPA Networks are willing to provide payments in Bitcoins to their affiliates. The idea is still pretty new, but it seems to be perspective.
- Such popular services as AdPlexity and other affiliate must-have services are already accepting payments for their services in Bitcoins. More are coming.
- Facebook seems to have lost most of its negative bias towards Bitcoin/Cryptocurrency ads recently. It allows many types of such ads (promoting courses for one), so long as the ads relate to the legal side. Only trading is still a ‘no-no’.
- In a little while, the advertisers and website owners may no longer want a mediator to sign an agreement. This will strongly influence CPA Networks that make money off mediation.
- A new global boom of e-commerce, this time free of middlemen and fees because of Bitcoin’s decentralized nature. This should trigger an increase in global traffic usage, creating new opportunities for affiliate marketers.
If the tendencies prevail (and all chances are that they will), we are going to see Bitcoin gain all the attributes of a payment method… The consequences will be huge, and those who prepare for them now will benefit in the future.