Cryptocurrencies and social media seem to be getting along just fine. The digital payment solution that has taken the financial world by storm originated in forums and other kinds of social networks. And, crypto payments are slowly becoming the mainstream payment option.
In this article, you’ll read about how crypto payment is impacting social interaction online, and vice-versa. Stay tuned with our guest specialist, Alex Lysak, and follow the latest developments in the crypto world as he shares his extensive knowledge and expertise on the topic.
What is Crypto?
Cryptocurrency, also called “crypto” or “altcoin,” is a kind of decentralized currency. This means that no central bank or government regulates it. Bitcoin is the first cryptocurrency; that’s why many people equate both terms. However, bitcoin is one among several “altcoins.” Ethereum (ETH), Ripple (XRP), Neo (NEO), and Litecoin (LTC) are some of them, or you can refer to Scanteam research and crypto payments infographic to learn more.
Blockchain technology is behind the whole concept of cryptocurrency. The invention of this technology is attributed to the name of Satoshi Nakamoto. However, no one knows whether it’s a real person or a collective of developers.
Social media witnessed the first bitcoin transaction. It’s written into the history books as the “bitcoin pizza day.” A guy named Laszlo Hanyecz posted it on the Bitcoin Talk forum, a crypto social network offering 10,000 bitcoins for two pizzas.
At that moment, bitcoins were worth less than $0.06. Nowadays, they are worth more than $60,000. Those pizzas ended up costing way more than Laszlo Hanyecz expected.
Bitcoins are constantly in the news, thanks to their volatility. Because of its behaviour, many people are sceptical or unaware of its functioning. A recent survey from Alpari points that 60% of Americans are clueless about cryptos.
For this reason, there has been an increase in online groups dedicated to explaining how bitcoins work. You can find related content on YouTube channels, Twitter, Instagram, and Facebook. Such a social media push is turning bitcoins or crypto payments mainstream.
Blockchain and Social Media
Blockchain technology is affecting how social media platforms interact with their users. The last two years have seen a surge of crypto networks such as Bitfinex, Hive, Mamby, and Honest.
Those social networks reward their users in cryptocurrencies based on online engagement and content creation. Such is the case of Mamby. This platform awards its users based on high-quality content while fake news or inadequate information is ruled out.
Cryptos Against Fake News
Blockchains can be the cure to the fake news plague. In theory, the technology can be used to create a sort of “Fake News Database,” which would be accessible by anyone. It can also work as a tool for fact-checking content on platforms like Facebook and Twitter.
Elon Musk, Bitcoins, and Twitter
In another example of high volatility, bitcoin value went on a roller-coaster ride with Elon Musk after a couple of tweets. A few weeks ago, the billionaire announced that Tesla would no longer accept crypto payments or payment in bitcoins.
It came as a shocking surprise since Musk purchased a massive sum in bitcoins ($1,5 billion) last February. The announcement has caused a sharp decline in bitcoin value, which fell to $31,227 after a record value of $63,000.
This shows how social media can affect altcoins’ fluctuation.
Blockchain Against Censorship – Meet the BitClout
BitClout is a spearheading experiment on the decentralization of social media. For starters, it isn’t a company. In fact, it was created by a collective of anonymous developers. Because there’s no moderating authority, no one can censor any content.
BitClout is a blockchain created to support social media. However, it adds its twist to it, rewarding the creator rather than the content. The platform explores the popularity of the Non-Fungible Tokens.
In fact, there are many musicians, celebrities, and influencers migrating to this new platform. NFTs are the latest trend in the monetization of the creative industry. This trend is attracting the attention of fintech companies all over the world.
Because of the speculative nature of altcoins, it’s impossible to predict their fluctuation. Still, it doesn’t seem to be daunting investors, and some social media platforms even give away fractions of it only for rewarding online traffic.
More people are earning cryptos online. So, more people are likely to spend it or make crypto payments, expanding business opportunities.