With everything happening in the economy, alternative currencies have been a popular topic in recent times.A great deal of money is being printed, and cryptocurrencies such as Bitcoin and new ones such as dogecoin are coming into the limelight.So we thought of exploring how exactly Bitcoin and cryptocurrency affect digital marketing and how they can, in turn, impact your business.In this blog, we will discuss a few ways Bitcoin can impact digital marketing and small businesses in the future.However, before we get on to the effects, let’s first take a quick look at what Bitcoin and cryptocurrency are.WHAT IS CRYPTOCURRENCY?Cryptocurrency refers to a virtual or digital currency secured by cryptography, making it almost next to impossible to forge or double spend.Many cryptocurrencies are decentralized networks based on blockchain technology which is an open, distributed ledger that records transactions between two parties efficiently in code.To simplify things a bit, think of these as a virtual bank account distributed across thousands of computers worldwide.Each transaction is recorded in a “block,” which is then linked together on a “chain” of past cryptocurrency transactions.An even easier way to understand this is to think that you have a book where you record each transaction, i.e., where you spend your money every day.While every page in that book resembles a block, the entire book comprising all of those pages resembles a blockchain.Blockchain is what enables all cryptocurrency users to have a copy of these records of transactions.In essence, this computer code automatically logs every transaction as it takes place.
And then, it will move on to update the blockchain with the new information.So mainly, one of the greatest advantages of blockchain is that it ensures each transaction is accurately recorded.Hence, allowing everyone to see what’s happening exactly.Another defining characteristic of cryptocurrencies is that typically no central authority issues them, meaning they are immune to government interference or manipulation theoretically.Bitcoin was the first-ever cryptocurrency created based on blockchain and continues to be the most popular one among all others.Let’s take a deeper dive into what bitcoin is before going any further.WHAT IS BITCOIN?Bitcoin is a cryptocurrency created in 2009 whose creator remains unknown to this date.Nevertheless, the majority of the hype that comes with Bitcoin currently is appreciation and trading it.This is partly because of Bitcoin’s price shooting up towards the end of 2017 and a massive increase in 2020.Although, that’s what makes Bitcoin so exciting.People can hold it like a stock hoping that the price will rise.Considering that we all know cash loses value as inflation increases.As a matter of fact, the value of a single Bitcoin has increased by more than $50,000 within the previous year itself.That’s pretty insane, isn’t it?Some SMBs might also like Bitcoin better as there are no credit card processing fees linked with them, which is contrary to other payment methods that most SMBs need to accept.Now, if you are fascinated by this, the chances are that you’re thinking about how to get Bitcoin.There are numerous marketplaces known as “Bitcoin exchanges” where most people buy and sell their Bitcoins.
If truth be told, social media has directly resulted in the immense popularity and growth of cryptocurrency.With cryptocurrency trending on the top social networking sites, it is no surprise that Bitcoin has become the focus of public attention today.As a matter of fact, social media giant Facebook has plans for cryptocurrency for the growth of its business.With that being said, social media influences cryptocurrency right now and not the other way round.For instance, when a cryptocurrency exchange known as Bitfinex was hacked recently, Bitcoin’s value decreased by 20%.Once this news started doing rounds on social media, that company’s credibility began diminishing.Social media can also impact cryptocurrency inversely.
That’s because as the hype continues increasing over Bitcoin, people and businesses will increasingly become interested and eventually invest in it.One of the main differences between the stock market and Bitcoin is that, unlike the stock market, Bitcoin is not regulated in the same manner.This means Bitcoin will not be much affected by the decisions of the Government.WHAT WOULD BLOCKCHAIN TECHNOLOGY LOOK LIKE FOR MARKETING?Now that we all know how social media influences cryptocurrency, the real question is – how can cryptocurrency impact social media marketing trends?First things first, it is crucial to understand where things stand right now.To understand it better, let’s take YouTube, for example.You must have watched videos on YouTube and sometimes come across ads on those videos.
In this situation, these are the current roles:You are the audience.The channel (whose video you are watching) is the publisher.The sponsored ad comes from the advertiser.YouTube is the platform.In this example mentioned above, there are four parties – audience, publisher, advertiser, and platform.Here the advertiser pays a commission to the publisher to leverage their audience.
But the publisher is not the only party getting paid here.The advertiser needs to pay for that ad space via the platform, which means in this example, YouTube is the one making the most money.However, if blockchain technology were incorporated into social media, this would seem a lot different than what it is now.It would be incredibly advantageous to the consumers while having a fair share of pros and cons for advertisers.MarketersWith the implementation of blockchain technology, the most significant change would be the access that marketers have to consumer’s privacy.Marketers would have to depend on collecting data from prospects and consumers directly to build a digital marketing campaign.
