A Bridge Between Bitcoin and Traditional Finances: Is It Possible?
Traditional companies are trying to build a bridge between Bitcoin and traditional finances but they fail to attract Bitcoin investments.
Delta Business Management can’t manage to attract Bitcoin investments to their recent parking project at Gatwick airport. Lee Welham, one of the founders of the company, told Cointelegraph that they have no clients who have purchased using Bitcoins. It seems like Bitcoiners haven’t completely got to understand the company’s idea. That’s why they are being cautious about it. Nevertheless, such projects can be very useful as they might help to fill the gap between Bitcoin sector and traditional finances.
Delta Business Management is a young company passionate about new technologies and their potential for the future. That’s why they are going on with their parking project despite the obvious lack of attention. Besides, the company plans to launch several other projects in 2016. They will be connected not only with property, but also with other spheres.
Lee Welham said the idea to develop Blockchain-based projects came up to him “when he first read the Mastercoin white paper now known as Omni Layer”.
“The existing parking model means the property title deeds are held within the UK land registry and I thought that we could make the assets more interchangeable, easier to transfer, and possibly exit.
At present our assets are purchased by people all over the world and the returns are transferred into local fiat. We feel Bitcoin could offer a more cost effective and streamlined model”.
Too bad Bitcoin’s community seems to not pay attention to the company’s initiative. Welham told their project is going “a little slower than they would like, but they are taking a cautious approach in a fast ever-changing environment. They have no clients who have purchased using Bitcoins so far, but they are hoping that will change soon enough”.
A Lack of Understanding
Perhaps, the reason Delta isn’t able to attract Bitcoin investments lies in the fact that they didn’t highlight their proposal clearly enough. Bitcoin community stays cautious to them because they don’t really understand what the company offers. Simon Dixon, CEO BnkToTheFuture and Fund Manager Bitcoin Capital stated to Cointelegraph:
“This is a very clever idea, but the problem is that I am not sure if I have understood their proposition correctly, and this is the number one reason why we often ask businesses that apply to list on our online investment platform BnkToTheFuture.com to come back later—because their offering is not yet easily understood”.
He also added that “to get people to use your innovation you need great branding, communication, and a clear value proposition that makes some early adopters want to change their behavior. To change human behavior, you need to solve a major problem for them or be significantly cheaper, faster, and more convenient than the way they used to do things”.
The Problem Is Not in the Technology
It seems the problem isn’t in the technology itself or the project itself. The company just needs to highlight their offer more clearly so the investors could clearly see what they would get out of it. Besides, Ragnar Lifthrasir, the President of International Bitcoin Real Estate Association states that it’s “quite difficult to build the bridge between the Bitcoin industry and traditional finances”. He told Cointelegraph:
“That’s been a challenge, trying to connect traditional businesses with Bitcoin technology. They don’t always go well together. The main problem isn’t Bitcoin; the problem is the traditional businesses. To unite the two sectors, companies should figure out whether they just start over the pure Bitcoin technology-based service or whether they try and take some existing service and integrate with Bitcoin”.
Besides, having got to know more about the Delta’s project, Lifthrasir added:
“I don’t think it is necessary to have an additional token. There are other companies that are doing notary and time stamping stuff, and I think if you want to create an extra token for it, you’re doing it wrong”.
Furthermore he stated that “Bitcoin enthusiasts are so fascinated by the technology that they just create their applications and products without having researched the market properly”.
He advises not to develop a product and hope people will use it—but first find people who will use it. Then try to explain it to them and then—if a company gets good feedback—develop it.
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