The Impact of Social Media on Cryptocurrency and Blockchain
Social media has demonstrated its ability to serve big business, not only for advertising but by creating communities and movements lead by those who support the company. In addition, social media has demonstrated its ability to influence investors in the cryptocurrency space, whether positive or negative. The growth of cryptocurrencies and blockchain technology is highly dependent on social media websites, as there is a lack of information available to potential investors from other sources and provides a medium for investors and believers to share ideas.
Ranging from the forums to the major social media channels such as Instagram, Reddit, Twitter and Facebook; cryptocurrency is now trending almost everywhere. These mediums have connected millions of people from different corners of the world and continuously enable users to spread awareness and gather information.
Issues may arise when a potential investor will generally look to social media websites for information, rather than soliciting information from reputed sources. In an immature market such as cryptocurrency, there are not many reputed sources to gather information from. The problem is further exacerbated when false information is spread on social media, as this misinformation an only be dispelled through a discussion amongst users on the platform. Often enough, a false headline is sufficient to achieve whatever the purpose of spreading the false information.
People tend to visit Reddit as their primary social media source for all things cryptocrrency. The website contains many important details about the crypto market and important dates/news relating to an individual coin. Each coin will generally have its own “subreddit”, where a focused discussion can occur regarding that coin alone.
While social media has played a very important role in enabling potential and current investors to discover new information and share ideas, one must always be cautious of the spread of false and misinformation. As sources can rarely be identified and opinions taken for fact, one should always take what they read with a grain of salt and ask many questions until they can formulate their own opinion.