What Is Social Media's Role in the Cryptocurrency World?
Social media is a big part of our lives, and the existence of these platforms has bolstered cryptocurrency in a unique way. A lot of Bitcoin’s value derives from how we envision it within the depths of the internet. The advent of social media has pushed this value further with forums, Facebook, Twitter, Internet Relay Chat (IRC), Telegram, Slack and many more.
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The Early Days
When Bitcoin first appeared, many people talked about it in IRCs, mailing lists and forums like Bitcointalk.org. These online meetups were often where people first heard about digital money in the early days. Satoshi Nakamoto used these forums to spread the first adoption and discuss how to manage the network. These social media hotspots became the first breeding grounds for Bitcoin.
Satoshi used forums such as the P2P Foundation, Bitcointalk.org and Linux Foundation lists to discuss his new idea. The first “sale” — two pizzas delivered for 10,000 BTC — happened on a forum. These sites often saw people trading bitcoin for the first time, implementing new ideas, and spreading the technological innovations further.
Another extensive directory of computer activists was the Cypherpunks Mailing List. The list of associated members began in 1992 discussing computer science, the advantages of cryptography and software use-cases. By 1997, over 2,000 subscribers read the list regularly, discussing various ideas, including encrypted chat and electronic currencies.
Today’s Social Media Influence
Today, Bitcoin is a global phenomenon and you can track its exponential rise on several more social media platforms. Now, users on Facebook, Twitter and Reddit discuss cryptocurrency on a daily basis. Significant announcements and discussions take place in these online forums. As a result, the value of cryptocurrency solutions is way more prominent.
Even development teams and cryptocurrency projects operate their platforms around social media. Bitcoin developers, altcoin teams, Bitcoin businesses and news outlets, to name a few, run their organizations with Slack and Telegram. This environment has created a different kind of atmosphere, with teams working from around the globe remotely. Many of these crypto-workgroups are working in a holocratic fashion, and this atmosphere has changed how businesses operate.
Reddit has been a huge platform for the cryptocurrency crowd for quite some time. While visiting subreddits, users see daily news concerning virtual monies and blockchains. From mainstream news to crypto-specific publications, there’s always a steady stream of stories about the industry. Lots of these articles find their way throughout the hallways of many other social media platforms as stories get shared.
Social Media Pushes Initial Value, But in Time These Forums Will Change Too
Spreading this information creates a lot of speculation on bitcoin’s value. Positive and negative news posted throughout various platforms can affect the market. Stories of a hacked exchange may cause trading markets to downgrade bitcoin’s fiat value. Positive stories also cause the price can rise unexpectedly.
Social media plays a significant role in the getting this information out to the general public. If there are early signs of an insolvent exchange, for example, there have been cases of people being able to exit before the business folded.
Now there are social media applications aimed at using cryptocurrencies to reward users for spreading information. Blockchain-based platforms such as Steemit, Synereo, and the upcoming Yours Network intend to pay people to share. The attention economy is huge today, and many of these platform ideas may replace the social media giants like Facebook or Twitter.
Social media networks have brought many new attributes to the cryptocurrency industry, and this trend will continue. Blockchain technology and digital currencies are overlapping innovations when tethered to online forums. These online areas of discussions has helped give cryptocurrencies initial value, but they also strengthen the environment overall. In time, blockchain technology itself could also change social media for the better.
What do you think about social media’s influence on cryptocurrencies? Let us know in the comments below.
Images via Shutterstock, and Pixabay.
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