Social media is coming to define our relationship to the internet and to each other. Our social connections exist increasingly in an online-only sphere, with many users crafting entire identities and live out whole new lives within a social network.
What social media has done for social connections, cryptocurrency is now doing for finance. Blockchain technology and the currencies it supports are slowly but surely changing how we relate to the stock market, how assets are managed, even the very nature of ownership online.
Considering these two revolutionary forces, there’s little surprise that they have a shared history. In a way, Bitcoin has its origins in a forum: the first ever recorded Bitcoin transaction, when Laszlo Hanyecz bought two pizzas from Papa Johns with 10,000 bitcoin back in May 2010. Since then the relationship between this industry-disrupting technology and these society-disrupting services has only grown stronger.
Perhaps the top reason social media has become such a catalyst for cryptocurrency discussion, sharing and promotion, is because forums and social networks are so good at sharing. This doesn’t mean photos of cats and political rants (though they’re good at sharing those too), in this case it’s any and all news. With two thirds of Americans getting their news from social media, social networks are the ideal place to share news about digital innovation, and therefore the ideal venue to create buzz about cryptocurrency.
When it comes to the most up-to-date information on cryptos, you’ll have to go to Reddit. The social platform cum forum has subreddits dedicated to any niche interest you can think of, so it goes without saying that there is one for every cryptocurrency you can think of. The Bitcoin subreddit is one of the largest crypto-related subreddits, with thousands of posts a day on anecdotes, questions and advice regarding bitcoin trading.
The Social Impact
However, the power of social media is more than sharing information. In fact, by being such a powerful source of crypto news, social networks have the power to tip the market.
Sally Phillips, a tech writer at LastMinuteWriting and Writinity, points out that social media has a more profound effect than just news sharing. “Social media can directly affect the value of cryptocurrency. If there is a flurry of activity praising a currency, or personal testimonials of wealth gained, that almost always results in a direct increase in investment, resulting in increased value. Equally, negative stories correlate to selling and price drops. This is simultaneously why Bitcoin is so popular on social media, and why it fluctuates in value so frequently.”
As for Reddit, their crypto subreddits are frequented by anyone and everyone interested in blockchain investment. “If a big corporation is interested in a cryptocurrency, it’s almost certainly because they’ve read about it on Reddit,” says Kish Numar, an social media blogger at Draft Beyond and Researchpapersuk. “Even if they didn’t, the mainstream journalists that report on cryptos get their news from Reddit. It’s the Alpha and the Omega of crypto activity.” That means cryptos depend on social media activity to drive the major investment that’s needed for widespread adoption.
It seems pretty unfathomable to think of a world in which social media doesn’t have an effect on cryptocurrency. With social media becoming an increasingly interlocked part of the way we interact, it’s hard to think of any interest that exists without social media. As the younger generation more accustomed to digital worlds makes up an increasingly large part of the workforce, social media and cryptocurrency are set to grow in tandem.
One area this growth is sure to affect is the blockchain. It’s been proved over the past few years that the technology is no longer suited just for financial exchanges. In fact, there may well be benefits to using blockchain technology to manage social networks themselves. Blockchain could mean more secure social networks with decentralised content, minimizing the risk of fraud and breaches that have plagued large platforms in recent years.
The future of the blockchain social network is still emerging, but one thing is for sure: cryptocurrency and social media are not parting any time soon.
Victoria Munson is a business reporter at LuckyAssignments and GumEssays. She is always up to date with current events and enjoys writing about them. Victoria helps audiences’ understanding of the news by analyzing and interpreting the information, and is very passionate about following digital marketing and technology trends.