The Influence of Social Media on the Public Perception of Cryptocurrencies

Social media has not only revolutionized our forms of communication but has also become an integral aspect of our daily lives. Nowadays, our reliance on smartphones is ever-growing; we use them to stay updated on the latest news related to our interests, connect with new people, and even uplift our spirits with a bit of humor. While this dynamic can have adverse effects that warrant consideration, our focus today is on examining the monumental influence exerted by platforms like Facebook, Instagram, and others across multiple industries. It’s nearly impossible for any project or company today to overlook the importance of crafting a social media strategy.

In today’s digital age, platforms such as Reddit, TikTok, YouTube, and LinkedIn have emerged as powerful tools for sharing information. Their influence is undeniable, shaping how we consume and interact with content daily. According to Statista, the average time spent on social media worldwide saw a steady increase between 2012 and 2020. A study conducted in August 2023 by the same company highlighted the significant presence of social media users in countries like Brazil, the Philippines, and the United States. For instance, Brazilians spent an average of 3 hours and 49 minutes per day on social networks, while Filipinos devoted 3 hours and 53 minutes. In the US, the average was slightly lower, at two hours and three minutes per day… The most populous country in America has more than 300 million people active on social networks, with women comprising 53.9% and men 46.1% of these users as of early 2023.

Multiple transformative paradigms, encompassing both social and technological realms, have experienced significant successes and notable setbacks as a result of social media behavior. Our focus lies on a paradigm situated within the technological sphere, yet closely intertwined with the economic landscape—cryptocurrencies. Platforms such as Reddit, X, and Telegram have played a crucial role in connecting experts, enthusiasts, and investors in this domain, facilitating the formation of countless communities where discussions on news, market trends, and technical analyses take place daily.

Experts have made it clear, and newcomers quickly realize, that the influence of social networks on the public perception of cryptocurrency is exceedingly powerful. Remarks from public figures and even memes can significantly impact the prices of various crypto assets. For example, consider the case of Elon Musk, who has repeatedly used his Twitter account to discuss projects such as Bitcoin, Ethereum, and Dogecoin. In May 2021, Musk announced via Twitter that Tesla would cease accepting BTC as a means of payment, citing environmental concerns surrounding Bitcoin mining’s energy consumption. As a result, the prices of the leading cryptocurrency and other digital assets immediately plummeted. On the other hand, it’s important to note that while social networks have immense potential for educational purposes, they can also serve as channels for certain groups to spread misinformation and fake news, thereby exacerbating both euphoria and panic.

Given our examination of cryptocurrencies and their influence on public perception, it becomes necessary to uncover the backstory of Dogecoin. Prepare yourself, especially if you’re new to the crypto world, as what you’re about to discover is truly fascinating. Dogecoin, Elon Musk’s favored cryptocurrency, has its origins in an iconic internet meme: the Doge meme. This meme humorously utilizes a Shiba Inu dog to depict ironic situations. The genesis of Dogecoin can be traced back to 2013 when Jackson Palmer, an Adobe Systems employee, jokingly floated the idea of creating a cryptocurrency inspired by the popular meme. This lighthearted suggestion piqued the interest of Billy Markus, a programmer and former IBM engineer, who joined forces with Palmer to turn the idea into reality. Dogecoin is built on the Litecoin codebase and utilizes the scrypt hash algorithm. Its logo prominently features the Shiba Inu dog from the Doge meme.

Dogecoin has experienced a consistent increase in value over the years, reaching its peak in 2021, largely attributed to Elon Musk, CEO of Tesla and SpaceX, publicly endorsing the cryptocurrency. Musk famously declared it as “the people’s crypto,” emphasizing that “you don’t have to be an alpha male to have it”. His endorsement notably boosted the price of Dogecoin, with its value reaching $0.5697 per coin in May 2021, according to CoinMarketCap data. The current value of Dogecoin stands at $0.08106 per coin, which might appear modest. However, the long-term performance has been positive. For instance, consider the value of each DOGE on December 17, 2020: $0.00373.

Closing thoughts

There is no lack of politicians and educators who critique social networks, frequently emphasizing the risks tied to their usage. However, the situation is not so cut and dry. Social platforms have also produced positive outcomes, filling informational voids on various subjects and aiding in the promotion of admirable initiatives that truly needed broader exposure.

In the United States, home to over 300 million active Internet users, it’s the 18 to 29 age group that dominates online activity through smartphones. Notably, within this demographic, Facebook reigns as the primary social network, especially among those aged 25 to 34. The connectivity phenomenon has also deeply affected minors. According to a study by Kaspersky, 61% of children receive their first smart device between the ages of 8 and 12, meaning that many kids, often under parental supervision, learn about social networks and absorb a substantial amount of information directly from the Internet. Even my nephew, at just 9 years old, asked my brother about ‘this digital money called Bitcoin’ a couple of months ago.

Social networks play a pivotal role in shaping opinions and trends across various topics, particularly in the realm of technology. It’s safe to say that without social networks, cryptocurrencies would have struggled to gain the level of prominence they enjoy today. Now, it’s our turn to contribute. Our strategy for promoting the adoption and understanding of crypto is the LOAD protocol—an innovative, open-source solution that integrates decentralization and transparency principles to democratize access to digital financial markets. Through this protocol, we aim to cultivate vibrant and inclusive communities where users can freely engage in trading and stimulate discussions about the future of Blockchain. Hamza.biz, the inaugural platform powered by LOAD, is already online, offering numerous opportunities to embark on this thrilling journey toward a new economic and social paradigm.