The evolving relationship between social media and cryptocurrency
from Adam | January 24, 2021
Social media has become a valuable influencer in blockchain and cryptocurrency technology. Platforms such as social forums have made a significant contribution to growth. And the relationship seems to be on a promising cycle. Let’s take a closer look at the evolving relationship between social media and cryptocurrency and what that means for the future.
Social media introduced the bitcoin transaction
The very first cryptocurrency trade was negotiated in a forum. But it would be years before the market took it seriously.
The big guns like Microsoft, Overstock.com, and JPMorgan wouldn’t dip their toes in the water until Bitcoin’s popularity became inevitable. You can’t blame them. In this first transaction, the currency traded for 0.06 cents. Buying Bitcoin on a cryptocurrency exchange like OKEx will cost you in the low five-digit range today.
How the relationship works
Cryptocurrency is trendy. And social media is like. Digital channels have no choice but to use their platforms to follow. Facebook, Instagram, Twitter, Pinterest, none of them want to stay on the roadside while the world struggles to understand how this new form of money affects us. Facebook is even considering cryptocurrency for its business growth.
That shouldn’t come as a surprise. Social media has become the most powerful marketing tool in the world. Those who are not on board stay in the dust.
The proof is in The Social Pudding
There is no better evidence that the relationship between social media and cryptocurrency is forever intertwined. Social media platforms have influenced the price fluctuations in cryptocurrencies. When Bitfinex, a Hong Kong-based exchange, was hacked, Bitcoin’s value fell 26%.
The current situation
Those who are rooted in digital currency and blockchain technology see the importance of social media. For the latest news, both the investor and the curious turn to forums and social media.
Bitcoin’s social growth can be linked to Reddit. Even before the detailed information on Bitcoin subreddit, the platform offered analysts and enthusiasts insights. This has led to significant influencers like Ethereum, DarkNetMarket, CryptoCurrency and CryptoMarkets.
Even crypto journalists use Reddit, Telegram, and Slack to organize and share information on trends in digital currency and blockchain news. In fact, it has been found that Reddit is responsible for most of the cryptocurrency and blockchain trends that hit social media and other communication networks.
The future of the relationship
While social media is influencing the bitcoin and blockchain movement, the opposite is also true. A platform like Steemit proves this. Content creators on Steemit are paid on the social platform, not through advertising. Users pay a fraction for content they like, and it goes to the author.
Anyone can use Steemit and anyone has the opportunity to generate a stream of income while connected and without being tied to PPCs or ads.
The equilibrium continues to shift. Crypto’s social platforms are growing, adapting and improving the traditional social network mores for users and businesses. The relationship between social media, cryptocurrency and blockchain is moving at lightning speed.