Do you think there’s any field in this world that hasn’t been touched by social media yet? Well, I don’t think so. Be it health, beauty, fitness, finance, or anything else for that matter, social media has made an impact on all areas. For example, crypto companies make use of social media platforms to share relevant data and reports with US earnings calendar, that further impacts shares and investments in the crypto sector. Earnings calendar helps investors track, measure, and predict earnings from companies, including those serving the crypto industry, across timelines in a much more efficient manner.
Besides this, the overall influence of social media on cryptocurrency has been overwhelmingly positive and negative, too. But, you might be wondering, how did this happen? At first, there seems to be no connection between social media, cryptocurrency, and Bitcoin.
Well, to understand that, you will have to learn about the relationship between these three things. And although the relationship between the two isn’t complicated at all, it surely has various aspects that need to be considered before arriving at any conclusion. Some of the aspects are discussed below. So, to understand the interplay between cryptocurrency and social media, keep scrolling through!
Bitcoin
In 2023, the prices of Bitcoin have fared high in the US, probably because of the improved economic conditions. Just in October, the value of Bitcoin was above $35,000. And this was for the first time since May of 2022. In addition to this, Bitcoin is likely to see more investors from the US in light of the major trade changes that will be taking place.
The same has been predicted by other investors as well. For example, a renowned multinational bank has predicted that the value of crypto is likely to be around $1,00,000 by the end of 2024.
Ethereum
Although Bitcoin is the most popular cryptocurrency in the world, Ethereum still happens to be quite popular. In fact, this cryptocurrency ranks at the second position, just after Bitcoin, and has a lot of potential for growth! It goes amazingly well with NFTs, DApps, DeFi, and the list is predicted to grow each year.
As of 2023, the value of Ethereum is said to range between $1,800-$1,900. The lowest this can go is $1,600. However, don’t let this worry you. As it is said that the value of Ethereum will increase to a maximum of $6,500 and a minimum of $4,500 by 2025.
A Place For Discussions
Ask an average person when and where they heard about cryptocurrency first, and they will definitely say social media. True enough, social media platforms have played a huge role in introducing people to cryptocurrencies like Bitcoin. But apart from that, they have also acted as the top destination for people to hold in-depth conversations and discussions on everything related to cryptocurrency.
Social media is where people exchange information related to cryptocurrency — market trends, developments in the industry, different prices, etc. These discussions play a significant role in shaping the narrative around the usage of cryptocurrencies.
In fact, it has been shown that positive discussions and endorsements related to a kind of cryptocurrency on social media can lead to an increase in demand and price. On the other hand, negative news and wrong public opinion can bring down the price of some currencies and even compel buyers to ditch their holdings.
Promoting Financial Literacy
Cryptocurrency was always something that people were skeptical of. But, this was mainly because they didn’t understand it well. Yes, there were other ways of understanding the same, but they were not always reliable or straightforward.
Now, thanks to social media, people have started learning more about different kinds of currencies and their values in simpler terms. On top of that, due to the constant discussions, news, and analysis, people get to stay on top of new updates and make decisions readily.
In other words, with vast information available in their hands, they can educate themselves and make their own decisions without having to rely on anyone. This has led to people developing self-sufficiency and made them more financially literate as well.
Community Building
Who knew that cryptocurrency could ever act as bonding grounds for different sections of users? But, it is true. Social media platforms like Facebook, Reddit, etc., have emerged to be facilitators of various groups and communities of cryptocurrency enthusiasts, traders, investors, and developers. There is something for everyone.
And so, even though dealing in cryptocurrency used to be a lonely journey earlier, it has become less daunting now. People can now discuss the decisions they are going to make, get guidance and opinions on the same, share their insights with each other and more. All this leads to better and more informed decisions, too.
Besides this, there are separate communities and groups on social media that are specifically dedicated to Bitcoin advocacy. These groups advocate for the adoption of Bitcoin cryptocurrency and how important of a role that is going to play in the financial terrain.
Market Prediction
You may find it hard to believe that social media can also influence the cryptocurrency market. But well, it very well can. All the information that is shared and consumed has a direct impact on consumer behavior, trading strategies that are employed, and overall market sentiment. As mentioned above, positive discussions held on platforms like Twitter can lead to a surge in the demand and prices of a cryptocurrency, whereas negative ones can bring it down.
On the other hand, social media platforms can also lead the way to fraudulent practices. Pump-and-dump schemes have to be an excellent example of the same. Under these kinds of schemes, shared efforts of a section of traders first artificially increase the price of a cryptocurrency. They then create hype around the same, asking users to believe that buying it is going to be beneficial for them, even though it may not be the case. In the end, traders sell it off to earn profit.
Final Words
Okay then, people! You’ve scrolled to the bottom of this article, and so I hope you guys have understood the relationship between social media, cryptocurrency, and Bitcoin. Here, you have to explore the various aspects of the multifaceted relationship between these three. To sum up everything that was discussed, the relationship is dynamic and has both positive and negative sides, with a large number of factors influencing both.
