Social media has been impacting the world in many different ways since it started, even business. One of the industries that social media significantly impacted is blockchain and cryptocurrency. Bitcoin’s popularity is greatly due to social media, and the relationship between social media and cryptocurrency continues to evolve in exciting ways. You’ll even see blockchain-based social networks starting up.
Alex Lysak, a digital marketing expert at Scanteam, discusses the relationship between social media, cryptocurrency and how the two complement each other.
The First Cryptocurrency Transaction
The very first cryptocurrency transaction happened on a Bitcoin forum. A member on the forum stated that he’s willing to pay Bitcoin for Papa John’s pizza. He was taken up on his offer, and so a new era started. The member made a crypto payment of 10,000 Bitcoin for two large pizzas, worth millions today.
The Relationship Between Cryptocurrency and Social Media
A Scanteam analysis has shown that almost 40% of Americans get their news on social media. With cryptocurrency trending on many mainstream social media platforms, it’s at the forefront of everyone’s mind. People used to view Bitcoin and other cryptocurrencies as payment methods on the dark web for illegitimate transactions. Since it became a topic of discussion on social media, cryptocurrency has moved away from this image and become much more popular.
As the value of cryptocurrency is growing, people are buying this currency as a form of investment. In addition, Facebook itself is considering cryptocurrency as business growth. The network has over 2 billion active users and can easily use the influence to drive the adoption and sale of anything. So as long as news on cryptocurrency is trending on social media platforms, the relationship between the two will stay strong.
How Social Media Influences Cryptocurrency
Trends show that social media can influence the value of cryptocurrency, either causing increases or decreases in the price. As people seek to invest in this currency, the role that social media plays is still crucial.
Social media has the most updated news regarding cryptocurrency, which means that everyone interested looks for their news updates on these platforms. For example, Bitcoin owes much of its success to the online forum Reddit. This forum has been one of the biggest crypto social networks in cryptocurrency. There are various subreddits dedicated to the topic, where knowledgeable people inform others on developments in the industry. In fact, this is where journalists turn when they’re looking for news on cryptocurrency. As a result, trending cryptocurrency stories generally start on Reddit before it trends on other platforms.
What Does the Future Look Like?
It’s safe to say that social media will continue to influence the value of cryptocurrency and the decisions people make around it. Having said that, blockchain is making its own mark in the social sphere. As more industries start adopting blockchain, the roles of social media and cryptocurrency may become reversed.
Blockchain technology is disrupting many industries, and the idea of social media could be next. However, many of the methods in which blockchain operates can be solutions to current social media problems.
Since blockchain is decentralized, social media will never be on a single server. Instead, the network will regulate itself. This will allow for more control over the content that users post and less censorship.
Blockchain can also make the social network safer and more secure. Government and other agencies won’t be able to use your information. Blockchain-based social media will also be impossible to hack. In addition, these networks can allow users to manage their own personal information.
Blockchain technology also offers social network users better payment options. Payments can be more secure, and marketers can better their campaigns using Basic Attention Token processes.
Basic Attention Token
The Basic Attention Token (BAT) is one way that blockchain technology is disrupting digital marketing. Since more than 25% of Americans use adblockers, digital marketing is becoming more complex. BAT will allow users to get rewards when marketers come to them directly. It allows users more control over their history and who can access it, making their information more private. Marketers can track what consumers pay attention to without needing any more personal information. It also gives marketers more accurate information about the consumer that they’re targeting.
Will This Trend Continue?
The balance in the crypto-social relationship seems to be shifting and will likely continue to do so. More and more blockchain social platforms are popping up, and it’s becoming more popular, as it solves many of the problems traditional social media struggles with, especially privacy concerns.
Blockchain and cryptocurrency will probably become less reliant on social media as time goes on, while social media will become more reliant on blockchain technology.
The relationship between cryptocurrency, social media, and blockchain is an interesting one to watch. The relationship is bound to evolve, and this evolution will take place at the speed of light. The disruption that blockchain technology is causing in so many industries will impact social media more and more. As cryptocurrency and blockchain technology become more mainstream through popular social media, it will also affect social media works.