The PressCoin Cryptocurrency – Utility – Part I

PressCoin is different. In order to get your hands around the size of this business opportunity, one has to take a step back.

The value of PressCoin isn’t a single platform or revenue stream. PressCoin is a protocol, shared infrastructure and services, reference implementations, and an open developer ecosystem coupled with a startup accelerator program.

– from What is PressCoin, Really? This article explains how the PressCoin tokens will service a $100B+ economy, and how to think about the size of the market opportunity.

The Broken News Media Economy

By this time in 2017, everyone knows that the rise of Facebook and Google and other such Internet platforms has indirectly cause the downfall of journalism and has subsequently weakened democracies around the world.

This has happened because the news media economy, a vital instrument in the flow of unbiased and useful information about our world has become dependent on others for its very survival. And given that economics is itself a field of incentives, when such an imbalances occurs in an ecosystem – the results can be predicted fairly easily – the imbalance is exploited by everyone, and any collateral damage becomes the tragedy of the commons.

Case in point: nearly 30% of the global ad industry (~$560B) is now digital (at about $170B) and around half of this is already taken by Facebook and Google. What’s more is that nearly all the growth in the digital ad market (the remaining 70% and growing), is moving entirely into Facebook/Google, making matters worse. The news media industry has been bleeding heavily for the past several years, with no major solutions in sight.

This has caused a huge lack of innovation in the space as well, given people are unable to figure out new business models, and how to break the Facebook/Google duopoly in this important market that affects our lives,  society, and the very fabric of democracy. Luckily, everyone also knows that this is an incredibly important problem, and being a very large market, a successful strategy here will make for a very disruptive risk/reward ratio.

So PressCoin, then, is an entirely new approach to this.

Fake News vs Real News Round I

 

PressCoin as the Crypto-Economy for News

The operating words here are currency and economy, words that may sound rather boring and perhaps even sleep-inducing, but are critical in order to really understand this brave new world the human race has entered. And now, let’s address the PressCoin specifics that make this a useful cryptocurrency.

Economy

What is the new PressCoin economy? It is a set of platforms, partners, plumbing, and business functions to service the various actors in a new digital news media ecosystem.

The actors within this economy include journalists and editors, curators, commenters, and moderators, the readers, subscribers, news organizations, e-commerce merchandizers, politicians, citizen reporters, pollsters, advertisers, NGOs, neighborhood organizations, activists, and of indeed, all ecosystem participants.

All of these actors already work and collaborate with each other in today’s broken world – just not in aligned ways – tomorrow, all this interaction and exchange will happen over seamless integrated products/platforms that essentially serve as marketplaces between all the community members.

PressCoin comes batteries included – platforms and projects simply plug into a programmatic framework that includes payments in/out of PressCoin – allowing the possibilities of seamless experiences tailored to various actors, including seamless financial transactions.

Utility and GDP

Just as important as who the various actors within a certain economy are, the Utility of the PressCoin token must also be considered. After all, the demand for this currency, when it is in use in the real world, creates organic liquidity for it. The higher this demand, the better the economy is doing, as various actors are looking to purchase (and use!) the cryptocurrency.

Therefore the utility of the currency must be considered – and in the case of PressCoin, the actors mentioned above, ALL of them, would be using PressCoin to pay each other for the various activities. Given that this is a borderless, global market, the sum total of all these transactions is projected to be high. The sum total of all the transactions within this economy is the GDP of the economy, and is an indicator of the health of the business within it. If the amount of business going on is high, the GDP will be high, else it will be low.

Governments often seek to inject liquidity into markets by way of printing money, the ICO process follows the same principle, in that it stimulates economic activity within the ecosystem.

Currency

So the nominal value of each unit of currency will be dependent on the size of the economy, or in other words, the size of the GDP. In the case of cryptocurrencies, the same holds, and therefore the job becomes to predict the size the GDP. The measure (or prediction of the measure) of the GDP of a country is reflected in the strength of that currency.

The strength is measured in other currencies, so in (say) GBP terms, or USD or EUR terms, one can speak of in terms of the relative strength of a currency. In other words, the nominal value of 1 PressCoin, for instance, in terms of USD,  will depend on the size of the GDP, and therefore will go up if the total number of transactions go up (reflecting demand for the currency), and will come down if the number of transactions come down.

Presscoin stack 006

The PressCoin Cryptocurrency Economy

In order to determine the utility of a token like PressCoin, it is important to understand again where this utility will come from.

As described above, the PressCoin economy rewires all the actors within the system, to a more decentralized business model where the total value created is shared amongst all in the ecosystem, in direct proportion to their contribution.

The news media, global advertising, and related ecosystems are projected to be anywhere between $650 to $1T in size, depending on how many related (adjacent or vendor) industries one counts.

The goal of PressCoin is to take 5% of this market in the next 5 years – addressing $30B to $50B in opportunity. And each dollar, when it moves through an economy composed of interrelated members, has a follow-on economic effect of creating more transactions as the money repeatedly changes hands in the exchange for new goods/services. This is measured as velocity of money, and tends to be higher in more active economies. The sum total of all this transactional activity forms the basis of the utility of the PressCoin cryptocurrency.

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