Cryptocurrency social media
Before going into cryptocurrency social media, let’s take a look at the early days of crypto.
Few people know, but cryptocurrencies were launched as a side product of another popular invention. The unknown inventor of Bitcoin, Satoshi Nakamoto, actually never wanted to invent a currency.
However, it is a currency in the internet that employs cryptography, the course of converting intelligible information into an uncrackable code for tracking transfers and purchases.
Cryptography was invented out of the need for safe communication during the Second World War. Now, it has evolved in the digital era with components of computer science and mathematical theory and has become a crucial way to safeguard information, money and communications online.
Cryptocurrency is a kind of peer-to-peer network or blockchain technology, by which digital currency is accepted and received. Since the inception of cryptocurrencies, traders have been pulled in by the fantastic volatility and mindblowing returns. Reddit, Twitter, YouTube, 4Chan and almost every other social network have been surrounded with predictions about where the market is heading. But as soon as you are exposed to this swiftly emerging asset class for a continued period, you start to realize that nobody actually knows what is about to happen.
Cryptocurrency has soared in both popularity and value, over the last few years. According to several renowned industry leaders, cryptocurrency has the potential to revolutionize marketing and finance forever. However, as it becomes more popular, cryptocurrency comes with a few serious concerns for marketers who are looking for valuable consumer data.
How Is Digital Currency Different From Conventional Monetary Systems?
All transactions are secured, created and enforced on a decentralized ledger.
This implies that digital currency can be received and sent securely and anonymously without any fees or financial institution middlemen. Owing to this anonymous nature of cryptocurrency, it is strong enough to shape the future of how social media works.
We all are well aware of how social media affects our lives daily. Individuals who are interested in and holding bitcoin can receive any information on it by means of social channels. Reddit, Twitter and Facebook have helped introduce bitcoin into the mainstream. Bitcoin is nothing but a kind of cryptocurrency that has gained huge popularity among financial experts. It has also captured a notable market share and is referred to as digital cash system or virtual money that secures the anonymity of transactions.
However, just as social media may popularize cryptocurrency; it can also play a major role in fluctuating market prices. This was observed when Tether, a digital currency system, was hacked for over $30 million in tokens. This incident led Ethereum and bitcoin to drop in value. All this is a part of social media’s o in the global adoption of cryptocurrency.
Is Cryptocurrency Changing Digital Marketing?
Cryptocurrency transactions are great ways for consumers to buy services and products anonymously and securely. Although such deals are beneficial for today’s consumers, it could result in some serious issues for even the most seasoned marketers. Small digital footprints result in a less consumer data that marketers can compile for identifying key demographics, running ads and studying audience segments.
As digital currency gains momentum, social media marketers would ultimately have to redesign their research methods for predicting consumer behavior.
Owing to the decentralized peer-to-peer network that cryptocurrency and the blockchain maintain, marketers are sure to find it more challenging to accumulate consumer data. In the absence of timely and rich consumer data, the future of digital marketing strategies appears wobbly.
Cryptocurrency is a potent step toward online anonymity. No wonder, current internet users are thrilled to embrace this trend for securing their transactions. A recent research reveals that 86% of internet users have taken precautions to mask or remove their digital footprints. The process involves not just clearing cookies but also encrypting their email or to avoid using their real names for using virtual networks. They also take steps to mask their internet protocol (IP) address.
While cryptocurrency’s influence on digital marketing and future social media trends is still vague, experts also predict that the power social media has on the value and development of digital currency may also pave the road for the creation of unique crypto-oriented social networks.
Cryptocurrencies are fundamentally only digital money. There are various digital tools of exchange that have utilized cryptography and the blockchain technology to assist anonymous transactions. Over the years, we have witnessed several iterations of cryptocurrency. However, Bitcoin has largely mainstreamed cryptocurrencies in the late 2000’s. Although there are thousands of cryptocurrencies available in the market now, only Bitcoin has managed to attain success.
Bottom Line
Meanwhile, digital marketers may have to invest in consumer research for gathering all the relevant data that they require for accomplishing long-term advertising success. Naturally, such a trend is going to put more power into the hands of consumers. Whatever, the case may be, the future trends are going to decide the cryptocurrency social media alliance.
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