I get that question a lot. One good answer is, “anything that’s hot right now.”
And that hot topic should refer to something that’s relatively new, relatively complex, and relatively expensive.
This rule explains why I recently heard from
four eight 13 16 24 prospects launching new cryptocurrencies—something like Bitcoin.
What makes cryptocurrencies so hot?
Mainly the steep rise in Bitcoin’s value in 2017, as shown in this chart. The mother of all cryptocurrencies has been on an incredible upward sweep.
A similar cryptocurrency, Ether, has moved in tandem and may eventually overtake Bitcoin.
Of course it’s a bubble. Investing in Bitcoin has been described as a “neck-snapping roller coaster ride.”
One day the mighty may fall. But until that day, cryptocurrencies are the hottest trend in business… and in white papers.
Targeting specific sectors
While Bitcoin is intended as a universal medium of exchange, most of the startups I’ve heard from are targeting a specific sector.
In each case, the goal is to bring the benefits of cryptocurrencies to an entirely new field that has a big, nagging problem.
Here are five clear examples from the startups I’ve heard from:
- Marijuana buying
- Social media
In advertising, the problem is low engagement with video and online ads. TV advertisers especially have no reliable way to track response to their ads.
What if you could give consumers a way to jump right from a video ad to an online shopping website and even reward them for the click?
A cryptocurrency that paid consumers to watch ads could do that.
In day-trading, the problem is how to emulate the success of a few good traders.
What if you could find a way to encode the results of the best traders and even predict their future moves?
A cryptocurrency backed up by good AI could do that.
The healthcare system is straining from the huge number of aging Baby Boomers. And many people fear that pensions, benefits, and retirement savings can’t keep up with escalating costs.
What if you could find a way to pay for healthcare with a currency that gains in value instead of losing to inflation like our dollars?
A cryptocurrency could do that.
In marijuana—even in states where selling and buying it has been legalized—cannabis is still classed as an illegal narcotic by the U.S. government. Until that changes, those businesses can’t open bank accounts; they must deal in cash only. This is unwieldy and makes any marijuana business a target for criminals.
A cryptocurrency could solve that problem.
In social media, the problem is too many channels with contacts scattered all between them.
What if you could pull every channel into one app and reward people for downloading it?
A multi-channel chat app backed by a cryptocurrency could do that.
As you can see, there are many smart ways to use a cryptocurrency for a defined set of customers in a new business ecosystem.
That’s pretty cool. Actually, it’s pretty hot.
Two out of three is enough.
Q1. Is it relatively new?
Yes, cryptocurrencies are certainly new. Bitcoin was created in 2009, and Ether only two years ago.
A growing number of websites and newsletters are devoted to cryptocurrencies, but they’re still confusing to most mainstream business people.
I did some research that showed 99.999% of the world’s population has never bought any type of cryptocurrency. That means the people in the know are the 0.001%!
That means to most people, cryptos are relatively new.
Q2. Is it relatively complex?
Yes, the concept of the “blockchain” on which every cryptocurrency is built is a little complex.
A blockchain is an online ledger where every transaction must be verified by many other connected computers. That makes a well-designed blockchain close to invulnerable to tampering or hacking.
But you’ll probably want to watch a few more TEDTalks to get a little more knowledge.
Eventually blockchains will just be an accepted layer of security baked into commonplace apps for online banking, shopping, and “smart contracts.”
But it takes research to realize that much.
So any startup that uses a blockchain probably needs a white paper to define and explain it.
Q3. Is it relatively expensive?
Well, investors hope some day they look back and marvel at how little they paid to acquire their crypto-coins… compared to how much they’re worth today.
So maybe we should give this criteria a pass.
Although I think we can agree that investing in any one cryptocurrency—out of the 700+ that now exist—is a considered purchase.
That’s the consumer equivalent of a complex sale, where you need lots of information to make a sound decision.
Anything that involves companies or individuals making a big investment requires a prospectus, a business plan, or a white paper. Or maybe all three.
Good topics for white papers? Check!
Cryptos and blockchains are hot topics that are all over the news. Plus they’re both relatively new and relatively complex.
In my book, that means all
four eight 13 of the ambitious projects I’ve heard about need a good white paper.
In fact, I’ve worked with
three five companies so far on one of today’s hottest new topics for white papers: cryptocurrencies and blockchains.
P.S. If you’ve ever written a white paper about blockchains or a crypto startup, I’d like to hear from you. I could probably send you some work.
Any other hot topics for white papers out there? Please leave us your comment below.