Understanding Bluesky: The New Alternative to Elon Musk’s X
What is Bluesky?
Bluesky is an emerging social media platform described as “social media as it should be.” Visually and functionally, it resembles X (formerly Twitter) with features like search, notifications, a homepage, and options to post, comment, repost, and like content.
The primary difference lies in its decentralization, allowing users to host their data on independent servers instead of ones owned by Bluesky. However, most users still sign up with the default domain, “.bsky.social,” for simplicity.
Who Owns Bluesky?
Bluesky was originally the brainchild of Jack Dorsey, the former head of Twitter, who envisioned it as a decentralized alternative to Twitter. Dorsey left the project in May 2024, and its chief executive, Jay Graber, now runs Bluesky. The platform operates as a US public benefit corporation.
Why Is Bluesky Growing So Quickly?
Launched in 2019, Bluesky remained invite-only until February 2024 to address technical challenges before opening to the public. Recent political and social factors, such as Elon Musk’s backing of Donald Trump and criticism of X as a “toxic media platform,” have contributed to a surge in new users.
In November 2024, Bluesky reported gaining nearly one million new sign-ups daily, reaching over 16.7 million users. Celebrities like Lizzo, Greg Davies, Ben Stiller, and Jamie Lee Curtis have also joined, boosting its popularity further.
Despite its rapid growth, Bluesky still has a long way to go to challenge X, which reportedly has hundreds of millions of daily users.
How Does Bluesky Make Money?
Bluesky initially relied on funding from investors and venture capital firms, raising tens of millions of dollars. Unlike traditional platforms, Bluesky aims to avoid relying on advertising for revenue. Instead, it explores paid services like custom domains for usernames.
For instance, a user’s handle, such as “@username.bsky.social,” could be personalized to reflect ownership by an organization, like “@username.company.com,” which also doubles as a form of verification.
If advertising remains off the table, subscription-based features could become a primary revenue source. However, Bluesky’s financial future is uncertain, which is not uncommon for tech startups.
The Road Ahead for Bluesky
While Bluesky’s growth is impressive, its ability to sustain and monetize its user base will determine its long-term success. For now, it stands as a promising alternative to X, with the potential to carve out a unique space in the social media landscape.
