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Social media expands its scope with its influence on various industries in unique ways. Cryptocurrency and blockchain technology is one such industry. The proliferation of cryptocurrency and its growth spurt can be associated with social media.
How Social Media Cryptocurrency and Blockchain Work Together?
Since the beginning of digital currency was introduced by social forums to present popularity through prevailing social media channels, there has been a direct connection between social media and cryptocurrency.
The evolution of the relationship between social media, cryptocurrency, and blockchain is gaining heights. There is a mutual influence of one on the other as cryptocurrency and blockchain technology proceed to rise in popularity. There is a trend nowadays where social networks are based on blockchain technology.
The question now lies on how this virtual relationship develops. This article will define cryptocurrency, discuss its relationship with social media, and dig deeper into their possible future together.
Bitcoin Forum Served as Platform for the first Negotiated Cryptocurrency Transaction.
The exponential growth of cryptocurrency can be witnessed over the last few years. Global financial giants such as JP Morgan, Overstock, and Microsoft are more than interested in the blockchain technology that operates crypto.
However, the interest and popularity of cryptocurrency have just been recent. When bitcoin went officially live in 2009, its value was less than 0.06 cents. Currently, bitcoin is worth around $60 thousand.
The Link Between Social Media, Cryptocurrency and Blockchain
Cryptocurrency is enjoying mainstream success because of social media. It started with a small forum, Bitcoin talk, and two Papa John’s pizzas were ordered through a bitcoin transaction by Laszlo Hanyecz.
For 10,000 bitcoins, the two pizzas were purchased, with the coins’ value worth millions today. This first social forum transaction has led to more favorable situations, which resulted in a relationship between social media and cryptocurrency.
The Working Relationship Between Social Media and Cryptocurrency
Cryptocurrency is viral when it comes not only to forums but also with social giant media platforms such as Facebook, Twitter, Instagram, Pinterest, and others. So it is not a wonder how cryptocurrency became a hit in social media as it is the medium where people obtain their news.
Data shows that 67 percent of American adults utilize social media to get their news.
Digital currency’s growth and popularity are attributed to social media, and this does not surprise marketers. Marketers use Facebook to reach a specific demographic. If you would like to know about cryptocurrency, you can get started with the Immediate Edge website.
It is worth noting that Facebook plans to use cryptocurrency to grow its business. There are two billion monthly active users on Facebook, which allows it to promote the adoption of virtually anything.
The connection between cryptocurrency and social media can be maintained as long as social media is dominated by crypto updates, news, and articles. Moreover, cryptocurrency’s market price fluctuations can also be influenced by social media and other media outlets.
This love-hate relationship between social media and cryptocurrency is evidenced when a hack occurs about a sizable digital currency exchange. This news influenced a market price drop for Bitfinex, a Hong Kong-based exchange. The value of bitcoin dwindled by 20 percent. This is the downside of the relationship between the two.
How Does Social Media Influence Cryptocurrency
Digital currency and blockchain growth still depend on social media and forums. People and businesses are invested in being a part of the market as long as cryptocurrency grows.
A potential investor or current one needs to turn to forums and social media to obtain the latest news on cryptocurrency. The social forum Reddit is attributed to most of the growth of Bitcoin.
Reddit is considered one of the leading social media platforms that serve information to crypto analysts and crypto enthusiasts. For instance, a user can find specific information about Bitcoin on a Bitcoin subreddit.
Crypto news also has noteworthy subreddits that include CryptoMarkets, CryptoCurrency, Ethereum, and DarkNetMarkets.
Journalists find the latest crypto news through Reddit, Slack, and Telegram to share and organize information about the recent news on virtual currency and blockchain technology.
What Does the Future Hold for Social Media, Cryptocurrency, and Blockchain
The question is if social media and forums will still influence the future of cryptocurrency. This is true since social media affects almost everything. However, blockchain technology and digital currency are making their names in the social ecosystem.
Shortly, cryptocurrency may not depend on specific coin value but instead on utility. Furthermore, industries from different sectors might be adopting blockchain technology; thus, there might be a reversal of the role between social media and cryptocurrency where crypto can influence social media.
The existing social media idea can be transformed because of the concepts of blockchain such as:
Enhanced and secure social network.
Existing social media networks obtain user information and sell it to the highest bidder. This information is received by government-sponsored information sharing to online hackers. Social channels that work on crypto can allow users anonymity with their online and personal data, likes, and dislikes. This upgraded security will be highly favorable to social network users.
Decentralized social content.
Blockchain features decentralization which means that social media channels that work based on this technology will have no central server. Users are given the authority to post what content they want to post. No one needs to follow the regulations set forth by YouTube or Facebook.
Upgraded consumer payment alternatives.
Numerous inefficient customer transactions occur over social media since only a few payment options are available on such platforms. This is not wise for marketers who spend humongous amounts on social ads that return low ROI. This can all change when there is a social media platform that is based on cryptocurrency. Users will have more options on how to pay securely. Furthermore, marketers can obtain better lead generation results and consumer data through the Basic Attention Token (BAT) processes.
There is a continuing evolution between social media, cryptocurrency, and blockchain at unbelievable speeds. It is believed that this will be more of a mutual partnership as both are influenced over by the other.
This article only serves to inform and not as legal advice.
Thank you for reading!