The Crypto space is currently generating a lot of buzz amongst the crypto traders in the market. A few years ago, we only know the engineers or developers who were involved in the conversations about cryptocurrencies. Today, practically everyone is discussing cryptocurrency.
Have you ever wondered the reasons behind all these discussions?
We are going to discuss in detail the social influence revolving around the crypto space.
Relationship between social media & cryptocurrencies
Cryptocurrencies owe a lot of their popularity and growth to social media. It continues to have an impact on cryptocurrencies and blockchain which we can’t ignore. The relationship between crypto and the media spans a wide range of topics, from social forums to deep channels.
The proactive social media platforms enabled investors, traders, and corporations as the primary users of cryptocurrency. Besides, techies are also investing in the industry. Last but not the least, due to social media, the concept of cryptocurrency is gaining a lot of traction in the public eyes.
Impact of social media on crypto space
On social media, you may find any kind of information. Reddit is the frontrunner in the crypto race. They have aided in mainstreaming top cryptocurrencies by collaborating with Facebook and Twitter. The notion that Facebook is contemplating digital money as an investment option is intriguing.
Also, developers and investors use telegram and slack to reach billion of users to deliver updates and information related to crypto.
Software such as Lunar crush provides real-time insights that can help you make smart crypto investing decisions using research applications and APIs. Crypto investors, funds, and exchanges benefit from LunarCRUSH’s community insights.
What role do celebrities and influencers play in the crypto space?
The prospect of extraordinary gains motivates many investments. Even people who do not hold bitcoin or altcoins as of now have recently begun to explore the wild world of cryptocurrencies.
Practically, Celebrities have enormous power in every significant industry of the world. The mere remarks of well-known celebrities around the world have shifted market interest and trends in cryptocurrencies.
Elon Musk (celebrity CEO, who has over 72 million Twitter followers) is the only person in the world who has the power to alter markets with a single tweet. Every time he shocks the market with his tweets on cryptocurrencies. The millionaire has driven the price of bitcoin and Dogecoin up and down with less than 280 characters.
Dogecoin started as a joke that surfaced on social media merely as a meme.
While it’s simple to view Dogecoin as a joke, its large market cap, and strong community make it difficult to dismiss. On Reddit, the Dogecoin community had over 4 million subscribers back in early 2021 and has won praise from people like Elon Musk. Currently, Dogecoin has over 2 million subscribers.
Hitesh Matlani and Nikhil Chinappa are part of a new breed of cryptocurrency social media influencers in India that are boosting awareness and sharing market insights and viewpoints. Several of them are funded by exchanges that want to persuade additional investors to join.
How does social media influence crypto prices?
The dissemination of crypto news impacts a lot of opinions about bitcoin’s value. Both positive and negative news spread on social media platforms influence the crypto space. Trading markets may reduce bitcoin’s fiat value as a result of the news of a hacked exchange. Positive news can also cause the price to unexpectedly climb.
In other words, just as social media can help popularize bitcoin, it can also play a vital role in market price volatility.
For example, bitcoin and Ethereum both decreased in value by 5.4% after Tether, a digital currency system, was hacked for roughly $30 million in tokens.
Although social media does not have an accounting system, it does have mechanisms to engage the appropriate target audiences to conduct financial transactions.
What is the role of crypto communities?
The social networking site was also utilized by cryptocurrency to develop communities. There are few crypto professionals among these communities who share their valuable information with others. They provide infographics regularly and persuade individuals to join.
Cryptocurrency, like any other type of financial system, has performance concerns. The hazards are the same when compared to investing in real estate or the stock market.
The other concern has a lot to do with the dangers of the internet. Cryptocurrency holders may forget their passwords, and hacks may cause price fluctuations. For the time being, the use of cryptocurrencies eases business on the internet with the help of these communities. In general, content authors and curators gain a lot of perks for sharing crypto news and crypto material.
We can’t deny the associated risk that comes to mental health by social influence. But despite several drawbacks, we can observe social media is giving power back to the public and is being beneficial for the crypto space. The internet presents the globe with numerous options, and we can be certain that it will be a part of our future.