There are very few industries that haven’t been affected by the rise of social media. One of the most dramatically impacted industries is cryptocurrency and the blockchain that is its foundation. The incredible rise of Bitcoin, Etherium, and Ripple is largely due to social media, and there’s little disputing that social platforms have added to the legitimacy of cryptocurrency. As even Facebook has announced the intention to create its own version of cryptocurrency, the link between social media and crypto is only set to grow closer. The continued growth of cryptocurrency, alongside the integration of social media into the general public’s daily life, means that Bitcoin and social platforms are only set to become even more intertwined.
The First Bitcoin Transaction
It might not have been on Facebook (or MySpace), but the very first purchase using cryptocurrency was carried out over a social forum called BitcoinTalk. From that very humble beginning of ordering two pizzas online and paying with cryptocurrency, the digital currency has gone from strength to strength. Now, it is talked about in some of the biggest news media in the world, and is the subject of many articles, think pieces and banking periodicals regularly. The fact that the two pizzas cost 10,000 Bitcoins, which is currently worth somewhere in the millions, only furthers interest in the digital currency. It would have been hard to gauge just how much the value of Bitcoin would rise, but with many people making legitimate fortunes from buying and selling their cryptocurrencies, it remains possible to generate large profits. Even minor prophets on a regular basis can add up. And for every successful Bitcoin trade, you can be sure that social validation is only adding to the buzz.
As much as two-thirds of Americans get their news from social media platforms. Whenever a big shift in the value of a cryptocurrency happens, it immediately starts to trend on Facebook, LinkedIn, and Twitter. Now that Facebook is looking at cryptocurrency as a potential method of growing even larger, the legitimization of Bitcoin looks set to continue. Facebook alone is large enough to drive the general public to the mass adoption of seemingly anything, and with the social giant’s planned launch of the Libra cryptocurrency in 2020, the impact of digital currency can only grow. Of course, crypto prices can go up as well as down, and social media can be a double-edged sword in many cases. When the price of Bitcoin drops, it can lead to social media trending that reduces the price even further. Therefore, social platforms aren’t always beneficial for crypto traders.
Community and Crypto
Of course, one of the few benefits of social media is its ability to build communities among people who would otherwise never connect. That makes it easier than ever to get involved in buying and selling cryptocurrencies, as advice can be easily sought out. The social platform Reddit is one of the main sites for finding out the latest Bitcoin news, and it’s important that you have some idea of how to short Bitcoin. Short selling Bitcoin can lead to big profits when done right, so be sure to find out how it works. With advice available on almost every social platform, even those just entering the market now have unlimited potential for profits, but knowing the basics should always be the priority.
Social Media and Blockchain
The blockchain is one of the more complicated elements of cryptocurrency to get your head around, but it could be the key to the future of social media. There are those that fear that the blockchain could lead to the collapse of established social media because it eradicates the negative aspects of those social platforms.
- Decentralized social content: Without a centralized server, a social platform built around blockchain will not have to be governed by a controlling board. With the controversies surrounding the use of data by Facebook, Twitter, and TikTok, that lack of dictatorial control and exposure to the whims of those platforms is a very promising approach.
- Security: Whether it’s Facebook selling your data or hackers getting into your accounts due to exposed backdoors, social platforms are notoriously lacking in security. A social channel based on the blockchain can let users take control over their own data, improving their security online and making sure that owners of social media platforms are unable to profit from those that try to influence us.
For good or for bad, social media continues to have a significant impact on our daily lives. Now that the social space is becoming ever more intertwined with the rise of cryptocurrency, there are even those that believe blockchain technology is the next big disruptor for the social media companies that have helped cryptocurrency grow. What is clear is the relationship between social media and digital currency is only going to evolve, and it will do so faster than ever.