A whole lot of founders / teams have been asking if they ought to be embracing a cryptocurrency strategy. This is understandable given the frenzy of fundraising lately and the continuing dialogue about the prospect of cryptocurrencies as a different business model for internet platforms.
1) What is the benefit of working with a cryptocurrency rather than traditional money?
2) Can I use an present cryptocurrency (e.g., zCash) instead of starting my own?
E.g., are you simply looking to boost short-term funds an alternate to an equity around, or is there a true value concept of cryptocurrency running within your application?
4) Can you imagine such a cryptocurrency crossing beyond the boundaries of your application? Broadly , if there is a more use = more value concept (i.e.,”fat protocols“), there is an incentive to go wide to increase use.
5) What’s the model for inner economics around the cryptocurrency? E.g., how do people earn it, and how would they invest it, within the ecosystem?
I will follow up with more about these in a future article, specifically #5, as I think that’s the most basic question.