This article is a follow up to my recent article, Can Bitcoin Save YouTube? I have had further thoughts about the ways Bitcoin (Pending:COIN) (OTCQX:GBTC) can revolutionize the internet content monetization model. I have also spoken with the CEO and founder of PopChest, Valerian Bennett. PopChest is attempting to monetize video content with Bitcoin micropayments. This is exactly what I suggested YouTube (NASDAQ:GOOG) (NASDAQ:GOOGL) experiment with in my article. I wasn’t aware of this company before Valerian Bennett emailed me. Our conversation crystallized my thoughts about possible future trends in content creation in the next few years.
The problem with the current model of monetization is that ads are a fundamentally poor way to monetize content. The problem is it has been the only option besides just giving the content away for free or charging high prices. Users flow like water to the content with the least resistance which are the articles/videos that are free. Of course, it is impossible to run a website, pay editors, and pay content creators without generating revenues. This is why the internet is overrun with annoying ads whether they be banner ads or pop-up ads. Any website that charges for content is facing an uphill battle because it is competing with free versions of its product.
Part of the reason why consumers originally had apprehension about paying for content online is because they aren’t given anything tangible. It is mentally confusing for someone who is later in life to pay for something that they can’t feel in their hands. Another issue with digital content at first was that it was low quality. You can look at YouTube videos created 7 years ago to get a grasp of how
Originally appeared at: http://seekingalpha.com/article/3454976-bitcoin-makes-the-internet-better?source=google_news