The Impact of Social Media on Cryptocurrency
Social media has had an impact on a variety of industries worldwide and its influence over what content we view grows every day. When it comes to Cryptocurrency and blockchain technology however there is a special relationship with Social Media that has shaped the way in which Cryptocurrency has grown almost from its inception. But this begs the question what makes Cryptocurrency and Social Media’s relationship so different? Why does Social Media have such a staggering influence over the growth of the Crypto Industry?
When looking at the 4 and 5 figure highs of Bitcoin it is easy to forget where the cryptocurrency started. Back in 2010 Bitcoin was worth less than 0.06 cents. Many of the first bitcoin transactions were stipulated on Bitcoin Talk – a bitcoin forum that still exists today and has become a reputable source for all things crypto. This was where the currency first gained traction and people became aware of the technology. Much of the price can simply be attributed to greater knowledge of the coin and its applications, which can be directly attributed to the conversations on forums and message boards like BitcoinTalk early on in the coin’s life.
When promoting or marketing anything, social media is a no brainer, it’s how most people digest everyday news. Over 60% of American Adults use social media as their main news outlet. With platforms such as Facebook brandishing over two billion monthly users it’s easy to see how Cryptocurrency would grow being exposed to such a huge audience. Cryptocurrency news is rampant over social media, especially Twitter and Reddit and many people form their opinions based on these two platforms alone. The cryptocurrency industry definitely utilises social media in order to expose the industries to prospective investors.
Whilst cryptocurrency benefits from all the exposure social media has given to the technology some of the price volatility can be attributed how social media has sensationalised crypto. All it takes is one or two reports of a cryptocurrency exchange hack and suddenly the price drops. For example, when Hong Kong based exchange Bitfinex was hacked, Bitcoin value dropped 20 percent. This presents a big pitfall in the crypto-social relationship.
The future of Social Media and Crypto
From the news articles hyping coins to the crypto enthusiasts promising huge returns on the next best ICO social media is plagued with ‘get rich quick’ schemes and scams. But just as social media has made its mark on crypto, there are some ways crypto and blockchain technology have influenced social media. The idea of decentralized social media has been circulating over the last year with the aim to give control of content back to the creators as well as making users information more secure and even rewarding users for sharing their interests and viewing habits with advertisers.
As cryptocurrency and blockchain technology continues to mature and companies are finding real world applications and bringing them to market the relationship with social media continues to evolve. Can blockchain solve the problems of traditional social media? Where do you see the relationship with cryptocurrency and social media going moving forward?