Bitcoin and social media are among the most popular and innovative technologies in humankind’s history. These technologies have influenced the daily lives of many people in different ways. They have shaped how people interact, invest, manage their finances, and access information.
For instance, many people connect via social media. They also use social media platforms to collect data and access news. On the other hand, Bitcoin facilitates cheaper and seamless global transactions, including trading on platforms like Bitcoin Code, investing, and remitting funds to their loved ones.
But many people don’t know that social media affects Bitcoin’s value significantly. This article highlights how social media impacts or influences Bitcoin’s prices.
Social Media Relationship with Bitcoin
Social media and Bitcoin have an intricate relationship. Before exploding into the blooming flower of social media today, creators didn’t realize that their content could bring them significant returns. Social media platforms had their share. However, content creators didn’t benefit much from their creativity and hard work. And these eventualities made Bitcoin appealing to some content creators, providing avenues for compensation for their hard work.
Fast-forward, social media has significant power to influence modern society. Currently, social media presents a double-edged sword that may harm or help Bitcoin prices. Social media platforms can paint the Bitcoin picture to the masses. And if this picture flatters social media users, the value can increase.
If social media portray Bitcoin negatively, the prices can go down. Thus, social media can influence investors’ moods. Considering Bitcoin’s volatility and the increasing number of Instagram, Facebook, TikTok, and Twitter users, you realize that social media can influence Bitcoin prices significantly.
Social Media Trends
A TikTok trend caused an odd surge in the DOGE or Dogecoin price in July 2020. Jamezg97 uploaded a Dogecoin-pumping video on TikTok that caused an increase in its price. And this became a weird cryptocurrency trend that year. However, it showcased how the media can influence the crypto space. Today, DOGE rallies because of this trend.
Another popular trend began when Elon Musk, the Tesla CEO, announced that the electric carmaker would accept Bitcoin payments. He noted that the company had purchased Bitcoins worth $1.5 billion. The company said that this purchase added its flexibility to maximize returns and diversify its investment portfolio. Also, Elon noted that Tesla would accept Bitcoins in exchange for its products, becoming the first automaker to make such a move.
This particular announcement caused a surge in Bitcoin price, breaking the $44,000 record for the first time. Elon Musk went further to add #Bitcoin to his bio on Twitter. And this increased the crypto market craze. Eventually, the Bitcoin price rose to $58,000, surprising people from all parts of the world.
Many people interact via social media in the current world. Therefore, social media provides platforms that bring people from different places together. With Bitcoin gaining more popularity, people have established forums for sharing ideas and learning about it on social media.
Currently, Bitcoin-based businesses have social media platforms to promote their services, explain how this cryptocurrency works, educate, and attract new users. Social media is not like conventional news platforms where people watch or read published content without doing anything. Users can share their opinions and views in the comment sections with social media.
When researchers and analysts comment on social media content, they can affect Bitcoin’s price positively or negatively. Thus, social media comments can undoubtedly affect Bitcoin’s value and investors’ decisions.
Social media has more than four billion users globally. Therefore, no entity can underestimate its power and succeed in its operations. As noted, social media presents a double-edged sword, meaning it affects Bitcoin’s price positively and negatively.