Crowdsourcing Our Economy

http://www.crowdsourcing.org/editorial/why-bitcoin-is-good-for-crowdsourcing/31727

How Crowdsourcing change the future business

How Crowdsourcing change the future business

Crowdsourcing refers to the act of raising contribution varies from ideas, services to investment from the online community. Potentially, crowdsourcing is expected to transform any kind of business to a new stage that is cheaper, faster and more efficient. The article above mentions the possibility of creating a new economy with the utilization of crowdsourcing platform. The major challenges include the industrial mindset and the infrastructure for the economic transaction

Recently, Bitcoin has become known as the online currency for peer-to-peer payment. The proposition of Bitcoin help addressing both obstacles since it serves as a kind of reward for organizations and individuals’ contribution to the platform. Moreover, Bitcoin is an ideal digital and decentralized currency for this new type of economy for the value can be transferred directly from one person to another. Some of the most dispute issues about Bitcoin and Crowdsourcing together as a new economy include:

–       According to federal law, banking sector and any other related activities are subjected to be regulated by both state and federal statutes. However, the Federal Reserve simply does not have authority to supervise or regulate Bitcoin in anyway. In other words, there are no third-party seizure, no taxes, no tracking and transaction costs.

–       Economists identify the elements of economics include people, government, different sectors and market. In case of Crowdsourcing and Bitcoin, the lack of government regulation can be either advantageous or disadvantageous.

–       What is the capability of the new economic platform? Does it help a generation of young people to build their own marketplace instead of playing economic catch-up their whole lives?

 

Relevant information:

http://www.cnn.com/2013/01/08/opinion/jones-share-economy/

A new breed of companies is leveraging the power of networks and sharing:

Mosaic connects investors to solar projects in need of financing. The projects generate revenue by selling the electricity they generate, which allows the investors to get paid back with interest. Through the company, you can pick a solar project that you like, make an investment for as little as $25 and get returns starting at 4.5% annually. Of course, as with nearly any investment that isn’t federally insured, there’s a risk involved.

 

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2 thoughts on “Crowdsourcing Our Economy

  1. While in theory this could certainly be a great thing because it gives a lot of aspiring entrepreneurs a chance to develop their ideas and build their audience and supporters. But one concern here would be when people with bigger means start tapping into this sort of system.

    In the film industry, we saw Spike Lee, Zack Braff and Veronica Mars raise substantial amounts of money for their projects. Spike Lee caused tremendous controversy because many wondered why a man who worked in the studio system and could afford to buy court side seats for every Knicks home game would need $1.5 million from other people. Kickstarter benefitted from this situation financially (because they take a commission) and in terms of PR. Obviously it would not benefit them to stop someone with Spike Lee’s profile from posting projects online.

    Is there a point where major crowdsourcing websites place regulations on who can pitch projects? Does having more regulations ultimately damage the notion of crowdsourcing?

    • Thanks for your comment.
      I think it would be a whole new discussion if we take a look at the action of different groups in this potential new market. Having said that, I do agree that there’s need to be at least some ground rules in order to create a fair market as it existed. The fact that maybe a lot of big players will join this game and control all the investment projects (and some of them are already there) is definitely a big challenge for the potential market. However, I believe this theory is only apply to big project investment. Crowdsourcing, on the other hand, will be extremely benefit when focus on smaller projects for example Microfinance.

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