Source: socialmediaexplorer.com

The Relationship Between Social Media and Cryptocurrency in 2021

Virtual (crypto) currencies represent a modern form of money, ie private means of payment. Thanks to the technological properties they possess, especially the use of Blockchain technology, the global transaction networks associated with them are relatively secure, transparent, and fast, which gives them good prospects for further development. Today, they are one of the most lucrative forms of investment, and many people are taking this step by step, whether it is mining or trading.

Cryptocurrency originator Satoshi Nakamoto (probably a pseudonym) in 2009 announced that its peer-to-peer software Bitcoin offers an alternative to traditional e-payment channels. An idea to create such a system arose from the need for an electronic payment system that is based on cryptographic evidence instead of trust, allowing any two willing parties to execute direct mutual transactions without the need for a reliable third-party side. Open-source software with a peer-to-peer design is based on a complex algorithm and secured by cryptography. The protocol allows users to record and transfer brand new digital currencies, automatically generated and unbound by central monetary policy.

Source: pexels.com

Cryptocurrencies represent a global phenomenon of the new age that has caused numerous controversies, condemnations, and enthusiasms. After almost a decade of existence, the passions of support and condemnation of cryptocurrencies are still not calming down. It is an indisputable fact that, in addition to all the condemnations and disputes, cryptocurrencies have survived, and not only that but in recent years experiencing rapid development. The Internet and globalization are the wind behind their development. Cryptocurrencies were created in response to needs created by future trends. Cryptocurrencies today are no longer an indication of far future, rather than a real means of payment with real consequences.

Social media are very popular today and could be said to be the most effective system of advertising and publicity. Cryptocurrencies have embraced Twitter as a major channel of communication. Employing social network analysis and sentiment analysis, this study investigates the Twitter-mediated communication behaviors among cryptocurrencies. This study determines whether a significant association exists between cryptocurrencies’ Twitter networks and their credit scores. Let’s just remember the events of March 2021, when the owner of the Tesla company, Elon Musk, posted a tweet in which he announced that he had invested millions in this currency and that bitcoin would be accepted as a means of payment for Tesla cars. So just one tweet was enough to launch the value of this currency from $ 40,000 to $ 60,000.

Source: entrepreneur.com

It is also important to point out that one social network, Facebook, has publicly introduced its currency, Libra, which should compete with previously known cryptocurrencies such as bitcoin and Ethereum.

“Libra,” as Facebook’s currency is called, should provide a secure payment system based on Bitcoin, but unlike bitcoin, it would base its value on concrete values and have the support of banks. So, we see the direct connection of cryptocurrencies with social media in another way.

With its new plan, Facebook wanted to create a crypto platform that would be based on their coins and would allow users to receive and send money via the social network. In addition to a personal account, users also have their own wallet with cryptocurrencies through which physical and virtual goods would be traded, without the additional fees that otherwise exist in a classic online store. In order for this service not only to be useful to people who have their personal profiles on this largest social network, the new form of trading is also adapted to advertisers.

Source: bbc.co.uk

Thus, cryptocurrencies are definitely worth investing in, although they are accompanied by volatility, ie uncertainty in their value. In any case, in order for someone to start trading or mining, he must know some of the basic things, and the first of them is to open a crypto wallet in which cryptocurrencies will be placed. This digital wallet can be cold and hot. We prefer a cold hardware wallet because it does not require an internet connection as hot. You can now move on to buying cryptocurrencies, which usually take place in exchange offices. Bitcoin has gone a step further and sets up new bitcoin ATMs around the world every day, which makes shopping much easier because the transaction takes place anonymously and without intermediaries. It’s time to invest – trade or mining. Mining is very popular, but it is not supported by the consumption of electricity, so many prefer to trade. All it takes is to find a reliable platform and the investment can begin. You can visit this site to learn more about it. What is especially useful are mobile applications intended for independent trading, ie applications in which artificial intelligence does most of the work, ie monitors the market situation for you.

The system is so oriented that the cryptocurrency gains in value over time and that there is never inflation; first, because there is no central institution to pump currency into the system, and second because the software is so programmed. No bitcoin owner is motivated to do so because he would lose by crashing the system bitcoin, or money. This opens up space for alternative cryptocurrencies – different concepts of software – who use the basic ideas of bitcoin but pay mining prizes more casually and generously. Time will tell show how sustainable and stable they are.

Source: pexels.com

No matter in which direction things develop, the fact is that digital currencies at the same time bring new opportunities but also new shortcomings and problems. As many times before, new technological opportunities can be exploited in both the positive and negative sense that we are tried to show in the first part of the paper. Digital currencies are a new economic tool, whose importance, contribution, and usefulness depend primarily on the circumstances and manner of use.

Money laundering, tax evasion, trafficking in illegal goods – these are all activities that are can design and charge cryptocurrencies. Opponents of cryptocurrencies often point out that they are the most loyal users of cryptocurrency criminals. On the other hand, many developers want an open dialogue with the authorities regarding regulation (part) of these systems, but in institutions, they most often encounter misunderstanding and reluctance. Also argue that cryptocurrencies are just one type of technology, a tool that in itself can be neither good nor bad: it depends on what it is used for.

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