Social media has long been part of everyday life. Different platforms with different content formats are not only open to younger generations. Over the past few years, researchers have examined how virtual social space and cryptocurrencies are related with exciting findings.

More than four billion people are active on social media. On a wide variety of platforms, they either actively participate in the general discourse as content creators to find out more news. Due to social media, people can know how to use bitcoin360ai here (utilisez bitcoin360ai ici).

Cryptocurrencies hit social media

There is no question that cryptocurrencies have long since reached social media. It is people of generations X, Y and Z who primarily influence events. Their openness to virtual currencies and the great interest in the Metaverse ensure that crypto is increasingly being talked about. The advantages are obvious. Influencers who talk about cryptocurrencies today open up new possibilities for a large number of people in the areas of investing, decentralized finance and virtual goods.

Influencers already enjoy well-established trust, making it easier to decide to get started. The big names in particular can have an incredible influence. Recently, Bitcoin and Dogecoin prices have skyrocketed after Elon Musk tweeted about the currencies.

In addition, social media has a massive number of active users. In contrast to the earlier crypto forums, which tended to occupy a small niche, social media offers the chance of a much broader distribution.

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Bitcoin study suggests influence of social media

To test the hypothesis that social media influences the crypto market, researchers at the Stevens Institute for Technology in New Jersey turned their attention to it. In addition, they wanted to find out what dynamics underlie this influence. To do this, they dealt with the Bitcoin course and those factors that make it fall and fall.

The team proved that positive comments have a significant impact and make the Bitcoin price rise. What is interesting about this, however, is that those content creators who talk about cryptocurrencies regularly and often anyway did not have the greatest influence. Rather, as the researchers summarize, it is the “silent majority” that can make the price rise noticeably. Effects on price were about 10 times greater for more inactive users than for users who constantly tweet, post, and talk about crypto.

A significant reason for this could be that investors and business people deliberately do not pay attention to the people who deal a lot with cryptocurrencies. Here it could be that they only report positively because they want to increase the price and thus pursue their own interests. Viewers attribute less bias to the more inactive users.