The cryptocurrency industry has grown indefinitely over the last few years or so. There are certain factors that have contributed to the growth of the sector constantly. Nonetheless, the crypto market is now a trillion-dollar industry, and it has a lot of potential to offer high returns to the investing sector. Moreover, crypto coins are also emerging as a viable alternative to traditional currencies. They are believed to act as a hedge against inflation, and they provide an effective payment gateway to the consumers as well.
In addition to that, Bitcoin and other such cryptocurrencies are also challenging the supremacy of traditional banks by providing the desired levels of anonymity to the users. Many countries have challenged the use of crypto only because of its decentralization and anonymity. But at the same time, it came as a relief against the regulated conventional banking system for the consumers. The crypto industry is also gaining a lot of attraction from the developing countries, as they get a chance to support their economies through the emerging concept.
However, it has been observed that the crypto market is highly volatile and reactive to the news which makes it rather unstable and unreliable. Many individuals and organizations practice crypto trading and investing. They choose from a range of cryptocurrencies, and trade according to their goals and strategies. Due to the risks associated with crypto trading, individuals opt for trading platforms to make the right trade calls. Trading platforms, like Bitcoin Code, use artificial intelligence to forecast the price of certain assets. Traders and investors sign up for bitcoin code elon musk to have a better understanding of the ongoing market condition.
Are content creators monetizing their intellectual property through blockchain?
With the increasing popularity of blockchain, content creators and influencers are getting a chance to monetize their creations and claim copyright over them. The use of NFTs is also increasing in the entertainment and sports industry, as they are being sold for hundreds and thousands of dollars over different NFT marketplaces. Artists believe that this is a more profitable way of claiming their hard-earned rewards. This is why there has been a growing shift of trends in the flow of money in these sectors.
Even though there is no doubt that blockchain has the capability of solving certain issues for these artists. But at the same time, the influence of these artists over the crypto realm is rather challenging for other investors. They tend to drive campaigns and trends that eventually disrupt the outlook of the market. Creators also often confuse blockchain and cryptocurrencies as a concept. However, they have surely found a way of tackling the copyright and hacking issue in the entertainment industry.
The influence of social media platforms and influencers
Apart from this, the cryptocurrency market has been more responsive to the tweets of billionaires and renowned personalities than any other form of market. For example, the CEO of Tesla, Elon Musk has been repeatedly accused of manipulating the crypto market through his tweets and statements. In the year 2021, the performance of Bitcoin and Dogecoin was immensely impacted by Mr. Musk’s remarks. The crypto industry has been criticized for this disruption over and over again by financial experts. However, the phenomenon ceases to exist in the sector, and many investors are making their peace with it.
Moreover, social media platforms like Facebook, Twitter, and Tiktok have also been called out for having a strong influence on the cryptocurrency market. Influencers run campaigns, trends, and hashtags on these platforms to reach a wider audience and manipulate the market per se. There is a firm belief that trends of these social media platforms can cause price fluctuations in the market, for better or even for worse. The gossip and chatter on these media outlets have the capability of causing a panic among the users. Many examples of this phenomenon have been observed in the market lately.
Crypto experts have repeatedly explained how these influencers spread FUD (Fear, Uncertainty, and Doubt) and FOMO (Fear of Missing Out) among the consumers through social media campaigns. Being so reactive to such trends is never a healthy sign for a financial market which is why the crypto industry has to find a way out of this for good.