A growing number of business leaders and celebrities – such as Elon Musk, Jack Dorsey, Alex Ohanian and more recently Ricardo Salinas – have added the Bitcoin hashtag to their Twitter resumes. It did not go unnoticed. When Elon Musk added #Bitcoin to his résumé in late January, Bitcoin rose 20%.
If a series of billionaires and tech tycoons really took the Bitcoin pledge – whatever that was – what was their motive? Are they trying to manipulate the market, for example – or promote their brand?
Could they just be looking to pull the collective leg of true cryptocurrency believers? On the other hand, CEOs can be deadly serious: They point to a technological future that they think is coming – for example, global and decentralized.
Whatever the reason, it seems fair to say that social media has been tending to offer Bitcoin (BTC) value lately, and that raises some questions. For example, are cryptocurrencies more vulnerable to social media messages than other financial assets?
BTC and Social Media – Have you joined the hip?
Rightly or wrongly, many users judge BTC’s success by its daily market rate, and that price appears more entangled than ever before with social media activity.
Feng Mai, an assistant professor in the business school at Stevens Institute of Technology, commented on Cointelegraph “definitely.” “My research shows that Twitter posts from influencers have an immediate effect on BTC pricing.” This is for two reasons, May explained: “its lack of intrinsic value compared to other financial assets, and the demographics of its users overlap with social media users.”
Neil Wilson, chief market analyst at Markets.com Trading, added that cryptocurrencies – like some other assets that occupy relatively small pockets in the overall investment market, for example, GameStop – appear to be particularly vulnerable to social media because they are relatively illiquid with holdings. Large in the hands of relatively few people, and also because they have an ‘audience / follower’.
Lennard Neo, head of research at Stack Funds – a funding provider for crypto index – told Cointelegraph that although social media does not alter BTC’s “foundational value proposition”, which remains robust, “Tweets act as accelerators.”
Finn Brunton, Professor of Science and Technology Studies at the University of California, Davis, and author of the book Digital Cash: The Unknown History of the Anarchists, Utopians, and Techies Who Created CryptocurrenciesBTC and social media have been entwined since Bitcoin’s origins, he told Cointelegraph.
According to him, “Bitcoin has always been a social media movement first and a working currency second – driven by testimonials, stunts, memes, and advice for HODL and faith.” In this sense, the price of BTC is skyrocketing as a Foguchi CEO edits his Twitter bio “entirely on brand”.
Is celebrity interest good for Bitcoin?
On the face of it, the timely addition of #Bitcoin to the Twitter résumés of chief tech executives, such as Dorsey, Ohanian and Musk, seems to attract more interest in Bitcoin and ultimately increase acceptance and approval. Wilson told Cointelegraph:
“The startup support we are seeing for Bitcoin is very important in the price hike over the past few months. The Tesla movement is the kind of big corporate support that bulls are stuck with. More corporate support means more generalization and greater acceptance. The network’s influence is the key here.”
May added, “Musk and Tesla’s embrace of bitcoin is good news for the cryptocurrency, in that it lends credibility to the cryptocurrency as a medium of exchange, which is one of the main functions of money according to economists.”
But doesn’t this social media’s turbo fee make the BTC price more volatile – volatility has long been cited as a major barrier to cryptocurrency? When billionaire Salinas, the third richest man in Mexico, added #Bitcoin to his Twitter résumé in early February, for example, the price of the top cryptocurrency asset soared to over $ 40,000 for the first time in 23 days.
May responded that the entry of large companies like Tesla offsets any short-term volatility, and large companies will make Bitcoin less volatile: “Companies that accept BTC now should have a greater incentive to stabilize the value of BTC – they don’t. They want their earnings to fluctuate significantly. Day after day “.
Regarding the recently hashed bios, Brunton commented, not exactly a BTC bull: “It’s good for Bitcoin that more buying from the wealthy equals more parties invested in maintaining this leaky raft.” In his view, the better outcome in the long term is for users to migrate from BTC to cryptocurrencies that “perform better, are better designed, or have superior applicability.” He added that Bitcoin “is an alpha subtraction of what cryptography could be, so the higher the cost of sinking, the longer we will be stuck with it.”
Isn’t it just a fancy caught?
When Elon Musk added #Bitcoin to his Twitter bio on January 29, the impact on BTC was flammable – the price went up 14% in the first 30 minutes. But not all followers were completely clear about the intentions of the world’s richest man. Was he interacting with 43 million followers on Twitter? Add cryptic tweet – “Looking back on the past, that was inevitable” – only deepened the mystery.
However, the picture became clearer on February 8 when it was widely reported that Tesla had recently bought $ 1.5 billion of Bitcoin, which has yet to be revealed. Musk’s interest in BTC was clearly real. Musk has since removed #Bitcoin from his Twitter bio. Wilson told Cointelegraph:
“We know now that Musk is not just on his side but Tesla supports him at the corporate level – the strategy was approved by the board and audit committee. This is important because it is not just Musk’s whim but a” serious “corporate investment.
Brunton was less tolerant of Musk, whom he called the “A-1’s poster — who happened to be a billionaire.” However, according to him, “#bitcoin is definitely part of the Reddit-style starter pack of decorations and art displays for the Baron’s lifestyle. It’s about a culture and a scene, though. It has nothing to do with” technology “per se.”
Elsewhere, it has been suggested that Bitcoin retail CEOs have been using social media to promote their brand as a cryptocurrency-friendly company and get plenty of free publicity. Niu, for his part, believes that the markets are over-spread, and “there are definitely revolutionaries who tweet for fun at the expense of people.” At times like these, he told Cointelegraph: “It is crucial that we be careful, and that we invest rationally rather than emotionally.”
Did you know the new bitcoin technology?
Meanwhile, Balaji Srinivasan, an angel investor and co-founder of Coin Center – and an advocate of non-profit crypto policy – has been in the past with I suggested Bitcoin has become the new “science of technology” that represents high-level economic values such as decentralization and globalization.
Among the values implicit in Bitcoin technology, as he wrote elsewhere, is “internationalist, capitalist, decentralized, hyperinflationary, networked, crypto, digital, volatile, ambitious, and quietly revolutionary.”
So, is this what’s happening with the #Bitcoin movement: CEOs brandishing the new “science of technology”, excited to introduce themselves to a decentralized future that remains together?
“He. She [BTC] It is the leader among all cryptocurrencies and represents many of the inherent values in technology, said Jay Howe, CEO of OKEx cryptocurrency exchange, although it often means different things to different people:
“It may represent freedom for one person, and competence for another […] A lifeboat, speculative assets, store of value, etc. A person who has seen their life savings dwindling due to hyperinflation and using BTC as a way to protect future wealth will see the Bitcoin flag differently from a day trader or institutional investor. ”
Wilson told Cointelegraph: “I think Bitcoin has always been somewhat of a movement – it’s about decentralization and” taking back control “from central banks and governments, etc.” Dallas Mavericks owner Mark Cuban went further, telling Forbes in December that Bitcoin was “more a debt than a solution to any problem.”
A high-level social movement with shared beliefs? Brunton remained skeptical: “Bitcoin has always been – and has always been – embarrassingly conflicting, multiple social movements over currency and transaction infrastructure.” He also added that beliefs about what Bitcoin is different for people like speculators, liberals, anti-state, etc., concluding that: “To say that anyone has shared beliefs by holding a BTC is a class mistake.”
“Whether it’s science or not, for the crowd out there, it’s not just a matter of investing, it’s also a statement that they support a particular ecosystem or an asset,” Neo told Cointelegraph.
On a journey of group adoption
Regardless of the explanation behind the spread of #Bitcoin in the Twitter bots, most Bitcoin users will likely be encouraged to do so, recognizing that it is still a side show at best.
As Howe told Cointelegraph, BTC has “steadily gained momentum over the years – long before senior business managers arrived“ late to the party. ”The hashtags are a“ nice gesture, ”another sign that BTC is becoming a movement, but at Hao, in the end, is just another step on his “group adoption journey.”