Bitcache: Kim Dotcom wants to pay YouTubers in virtual currency

Never short of novel ideas, Kim Dotcom has presented his latest plan in a short video: his goal is to enable anyone earning money from online content, notably the publishers of videos on YouTube, to be paid in bitcoins.

Kim Dotcom is the former founder of MegaUpload, the infamous direct download site closed by police in 2012, for which the United States is still demanding his extradition from New Zealand. Thereafter he launched a second storage service Mega, which offers more or less similar services to its predecessor. All in all, he is accustomed to building a media buzz for projects that may or may not go ahead like the music platform Baboom and the MegaChat messaging service.

With Bitcache, he aims to enable internet users to donate bitcoins to the publishers of content they like. The micro-payment system functions via a plug-in, which, once it has been installed, takes the form of an on-screen donation button. Thereafter users just have to decide on the amount they wish to give.

Apart from YouTube, Bitcache could also be compatible with numerous other hosting and sharing platforms such as Google Drive, Box, Dropbox, WeTransfer and of course Mega. Kim Dotcom is already inviting YouTubers with more than 500,000 subscribers to test his system.

It should be noted that the concept is not new. The micropayment solution Flattr, which is based on the same model, also provides a dedicated button that can be used to donate to the publishers of online content. As for those publishers who would like to be paid in bitcoins, they can already present a QR code that users can scan to obtain their bitcoin account details.

Betting on the widespread adoption of bitcoin

For its part, YouTube launched a special system this year to generate more revenue for its most popular members. The "Super Chat" system enables fans and viewers to give their chat remarks special privileges like highlighting and extra airtime when they donate to online publishers and celebrities.

In any case, Kim Dotcom is betting on the future widespread adoption of bitcoin, a currency whose value shot up this summer to the point where a bitcoin is now worth close to 4,000 dollars. That's four times the amount that it was worth at the beginning of this year.

Bitcoin is an encrypted virtual currency launched in 2009, which is based on open source technology. For many years used only by geeks, bitcoin is now being progressively adopted by the general public to the point where many businesses now accept it as a means of payment.

For private individuals, bitcoin offers an alternative way to make payments online. Bitcoin transactions are secure and encrypted, so that, at least in theory, no one can use another person's account or usurp their identity. Transactions are conducted on a peer-to-peer network in which each user represents a link in the chain.

Video that explains the Bitcache concept: youtu.be/HOAvSwX7Aqc