Over the course of the last few years, cryptocurrency has established itself as a new and successful digital form of currency. Almost everyone is familiar with Bitcoin, arguably the most popular and significant form of crypto. Bitcoin is becoming more relevant to the business community in recent times, as more and more people seek investment opportunities in it. Cryptocurrency is mostly used by investors, traders, and corporations. However, tech geeks are also indulging themselves in this sector. Though, everyone is expected to have the know-how to go about it. There is plenty of crypto software that actually guides a newbie through the entire process, and gives a real hands-on experience of the field.
There is still a huge percentage of the global population that remains oblivious to the crypto world. To spread knowledge and information about cryptocurrency, many have taken over accounts on famous social media platforms like Instagram, Facebook, Twitter, and YouTube. People can even listen to podcasts about cryptocurrency. In this article, we will explore the effect of social media on cryptocurrency, whether it is a successful method of outreach, and if investors have grown since the beginning of cyber education on these social platforms.
Cryptocurrency And The Impact Of Social Media
There is no deniability in the power of social media. Social media has a severe impact on how people think and act in their daily lives. Almost every professional uses social media to endorse their business. There is no difference when it comes to cryptocurrency. Social media has a big influence on the highs and lows of cryptocurrency.
Now, it is easier than ever to educate yourself on cryptocurrencies, be it bitcoin, dogecoin, Litecoin, or any other such crypto asset. Many people have chosen YouTube to earn money by making crypto-related videos, like training the basics about crypto trading and mining. You can also find cryptocurrency-related hashtags on Twitter and on different Facebook pages that are all about spreading awareness, facts, the latest news, and so on.
The main reason why the cryptocurrency is not a bigger deal than anticipated is that it is complicated and complex, mainly for new traders in the field. A layman will never understand digital currency in one go, they will need proper dedication to learn the basic concepts and workings of digital currencies, and will have to sit through some long training sessions, and webinars to grasp the idea. This is where social media kicks in. Many digital currency platforms, for instance, ripple, have created a noticeable online presence on social platforms like Twitter. They use their popularity to educate the masses, which in turn helps them gain more investors. The easier it is for people to understand, the faster more people will hop on board. As mentioned before, social media affects the highs and lows of crypto. The Tether hacking incident (a cryptocurrency system) is an example of loss caused in the crypto market because of social media, due to which Bitcoin and Ethereum went 6% down in value.
Trading markets for cryptocurrencies are also using social media to their advantage. They use their online platforms to spread information about blockchain currency, customer support, and alerts. There are plenty of scammers that try to take advantage of a new investor who does not completely know their way around the crypto world. They create fake accounts and pose as well-known exchanges and generate fake links to steal money or crypto assets. There have been repeated incidents of hacking crypto wallets, all over the world. However, many platforms and authorities are actively working on eradicating such fraudulent activities through social media. The most they can do for their followers is to point them in the right direction, so they always make sure to warn investors of potential scams through online presence.
Celebrities And Their Influence On Cryptocurrency:
It is certainly evident that celebrities and influencers have an immense influence on almost every major sector of the world. Similarly, cryptocurrency has also experienced shifts in market interests and trends with mere statements of recognized and renowned international celebrities. A few of these individuals are mentioned below to analyze the impact they carry in the world of crypto.
John Cena: John Cena posted a picture of coins on social media with no caption. Everyone assumed the post was referring to Bitcoin and after his Instagram post, the value of Bitcoin went noticeably up.
Elon Musk: Elon Musk is an open supporter of cryptocurrency. He endorsed Bitcoin and other cryptocurrencies and this was followed by the biggest value increase bitcoin has seen. More recently, he has turned his attention towards “Dogecoins”, established in 2013. He called Dogecoin “The people’s crypto” and later created a poll asking if Dogecoin was “the future currency on Earth”, all on Twitter. Two tweets from his end managed to increase the value of Dogecoins to above $10 billion. This was another historical moment in the crypto industry, as it was a record high for Dogecoin. Recently, his company, Tesla also invested in Bitcoin. It is an act that will go a long way in normalizing the use of Bitcoin in the mainstream economic world.
Snoop Dogg: Snoop Dogg continued what Elon Musk started. He joined in with Elon on the Dogecoin meme-sharing thread on Twitter. After Elon jokingly tweeted about Shiba Inu, the representative of the Dogecoin, Snoop Dogg posted a meme of Shiba Inu edited into one of his album covers. Although this was all in humor, the prices of Dogecoin soared high. The price rose up to 55% on the same day this tweet exchange between Elon and Snoop occurred.
These incidents show the influence and reach of these megastars that only a social discussion from them can help in initiating a major shift in the market. Other celebrities like Ashton Kutcher, Lil Nas X, and Akon also support the crypto industry through their statements or actions. Social media and popular social media accounts (mostly belonging to celebrities) have a massive impact on the crypto industry. It is safe to say that social media holds enough power to make or break any cryptocurrency. However, social media is also advantageous to the crypto industry, as it helps spread awareness, knowledge, and even speculations, which are necessary at times to toy with the value of different crypto assets.