The hype around cryptocurrency is increasing at a rapid rate. People used to be hesitant about trading in cryptocurrencies earlier. Now, with more resources like Chrominator, social media platforms, etc., the awareness is slowly rising, thereby bringing in more investors. But do you know what’s been the greatest catalyst for the rise of crypto? Social Media! This might be making you wonder how social media is helping cryptocurrency flourish.
Well, it’s doing that in a variety of ways. If you want to explore all possible reasons, make sure you don’t skip a single section of this post.
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How Social Media Is Helping Cryptocurrency Flourish | Platform For Discussion
Since the very beginning, social media platforms like Twitter, Reddit, Instagram, etc., have provided people with space to hold discussions and debates about cryptocurrencies and everything related to them. Due to this, new ideas have come to light, and newer beliefs have been formed. Lengthy discussions held on social media made people less reluctant to invest in cryptocurrencies.
Besides this, social media is where people exchange information about the latest developments and market trends in the crypto industry. This information exchange further contributes to increasing awareness and knowledge. All the knowledge, in turn, helps people decide what they should invest in and how much. This is especially true for tech-savvy people; due to social media, most of them have started using cryptocurrencies as a mode of payment.
Although social media had played a part in fueling rumors like how buying Bitcoin is a terrible idea, over time, platforms also contributed to lessening rumors. It has been proven that positive discussions about a particular cryptocurrency have always led to an upward tick in its sales for a period.
Having plenty of information and resources at hand does lead to an increase in overall awareness, but, at the same time, it can be very confusing. A beginner in the field can easily get overwhelmed by the whole of it. It’s common for beginners to find themselves unable to decide where to start their trading journey, not despite all the information available but because of it.
This is where crypto influencers come into the picture. Think of them as influential leaders of the industry. When you find yourself stumbling around in the dark, confused about where to invest, they will be the light to guide you.
And how to identify a crypto influencer? Well, it’s easy. They have a large following on their social media accounts, all the content on their page is about crypto, and they also take part in collaborations and partnerships with other influencers and trading platforms. Their word is law; this is no exaggeration.
People trust them, look up to them, and invest in whatever they say will be profitable. That’s why they hold a lot of influence in the industry. Hell, the prices of cryptocurrencies can change on the basis of what they say or post!
It’s hard to accept that memes can contribute to the growth or flourishment of anything. But yes, guys, it is true. Memes play a significant role in pushing the crypto industry upwards.
You see, memes have become one of the most preferred ways of communication and expression on social media. All trending things have memes made on them. Trends give rise to memes. Memes on a particular trend further fuel the trend itself. And this has been happening with cryptocurrencies over the years. Memes on cryptocurrencies have made them even more popular among people.
The after-effect of the consumption of memes on cryptocurrency is not limited to entertainment and the popularity of a particular trend alone. Memes also affect their values. A particular cryptocurrency can experience a sudden rise in its price if the memes made on it generate a lot of excitement or go viral.
For example, because of all the memes made on it, PEPE’s value increased by 400% within just two days of its launch. It surpassed the values of those of its competitors like Shiba Inu and Dogecoin as well. Similarly, when Elon Musk shared jokes on Twitter about Dogecoin and that it was his favorite, the value of Dogecoin rose by 5000%, which made people who’d invested in it extremely rich within a few days.
All the discussions held, hard work by crypto influencers, and memes made gave rise to communities of crypto enthusiasts. They created their own Instagram pages, chat rooms, Slack channels, forums, etc., and garnered an audience of their own.
This created a very wholesome and welcoming environment for any newbie wanting to start trading in crypto. Beginners can simply join communities made on a particular coin and seek help from other members of the community if they need it.
Apart from discussing ideas and sharing knowledge, these communities promote and support cryptocurrency projects, thereby helping them flourish.
Fear Of Missing Out (FOMO)
How can we forget about FOMO when it comes to anything even remotely involving social media? All of the above-mentioned things, discussions and debates, influencers, memes, and communities on social media, make trading in cryptocurrencies the coolest thing to do on Earth. Anyone who is not involved in this is uncultured, uncool, and missing out on a lot.
This induces a severe Fear of Missing Out (a.k.a. FOMO) in people who aren’t taking part in any crypto-related activity. Not wanting to be looked down upon by others, these people jump on the crypto bandwagon, too.
The more people on board, the better it is for the crypto industry. And so, because of social media-induced FOMO, cryptocurrency flourishes.
Okay then, people! We’ve reached the end of this post. And so, I hope you’ve understood how social media is helping cryptocurrency flourish. In this article, we discussed all possible ways social media has contributed to the rise of cryptocurrency and brought in more traders. If you know any other reason apart from the ones mentioned above, please share it with everyone in the comments below!