Recently, Facebook expressed its intent to develop blockchain technology. The news followed after FB’s CEO Mark Zuckerberg announced that he intends to make his cryptocurrency.
The combination of cryptocurrency and social media is something going on since the surge of the use of the digital currency in other aspects. The blockchain technology is the subject of tests as a solution to almost everything, even to social media.
Even though social media and messaging platforms like iMessage and Whatsapp claim to have end-to-end encryption, some clusters of data that are left get picked up by third parties. Because of blockchain based social media not only does privacy and security get tightened, but also users can use cryptocurrency to buy content and access other services.
Social media sites like Obsidian Messenger, Nexus, Indorse, Synereo, and Steemit are blockchain based. Most of them employed blockchain based technology to decentralize their operations and to pay users while using the app for various reasons like posting on the app, for Steemit.
Different platforms are also used to increase awareness regarding cryptocurrency. Before, cryptocurrency was only a whisper among those who had and were interested in high technology that gives them access to such. Now, it is more accessible even if you are not a technology expert. A decade ago, the Bitcoin’s value was only less than 0.006 cents, but because of social media platforms, they drove the development and the growth of cryptocurrency. Because of its continued growth, the blockchain technology changed the finance industry and others.
Aside from its development, social media also brought people invested in cryptocurrencies into one big support group. In Reddit, crypto-analysts, and crypto-enthusiasts alike engage in conversations to share their insights in threads called subreddits. For example, the Bitcoin has its subreddit where it contains everything a person needs to learn about the said cryptocurrency. Some crypto-journalists also use social media as a means of gathering news about cryptocurrency.
Despite its positive points, the blockchain technology also has its fair share of negatives. Because of social media, it is easy to find out when a particular cryptocurrency value falls. For example, Bitcoin has previously experienced instability with its value surging to record highs, then suddenly plummeting. When a crash or scam news spreads through the Internet, some users feel doubtful in investing in such currencies.
The correlation between social media, cryptocurrency, and blockchain continues evolving as more crypto-based sites emerge. However, changes are still taking place when it comes to managing and developing these currencies through social media, but overall social media plays a significant role in the success of these cryptocurrencies.