A growing number of business leaders and celebrities – including Elon Musk, Jack Dorsey, Alex Ohanian and most recently Ricardo Salinas – have added the Bitcoin hashtag to their biographies on Twitter. It didn’t go unnoticed. When Elon Musk added #Bitcoin to his bio in late January, Bitcoin rose 20%.
When a bunch of billionaires and tech moguls have chosen Bitcoin for whatever it is, What is your motivation For example, are you trying to manipulate the market or promote your brand?
Could they just try to piss off real crypto believers? On the other hand, CEOs could get serious: They point to the technological future that they believe is looming, for example global and decentralized.
Whatever the reason, it seems fair to say that social media has recently overturned Bitcoin’s (BTC) value proposition, and this raises some questions. For example, Are Cryptocurrencies More Vulnerable to Social Media Messages Than Other Financial Assets?
BTC and social media: connected on the hip?
Rightly or wrongly, many users judge the success of BTC by its price in the daily market, and that price seems more intertwined with social media activity than ever.
“Absolutely,” Feng Mai, assistant professor at the Stevens Institute of Technology School of Business, told Cointelegraph. “”My research has shown that influencer Twitter posts have an immediate impact on the price of BTC“There are two reasons, said Mai:”Its lack of intrinsic value compared to other financial assets and its user demographics match those of 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 general investment market, such as GameStop – seem particularly vulnerable to social media because they are relatively illiquid and large are stakes in the hands of a comparatively small number of people, and also because they “a lot / cult followers“.
Lennard Neo, head of research at Stack Funds – a provider of cryptocurrency index funds – told Cointelegraph While social media doesn’t change BTC’s still strong “fundamental value proposition”, “tweets act as an accelerator”.
Finn Brunton, Professor of Science and Technology Studies at the University of California, Davis, and author of “Digital Cash: The Unknown Story of the Anarchists, Utopians, and Technologists Who Created Cryptocurrency,” Utopians and Technologists Who Created Cryptocurrency) said that to Cointelegraph BTC and social media have been intertwined since the beginning of Bitcoin.
According to him, “Bitcoin has always been a social media movement and then a working currency – powered by testimonials, stunts, memes, and admonitions about HODL and beliefs.” With that in mind, the price of BTC is skyrocketing as a fashionable CEO modifies his bio on Twitter.
Is Celebrity Attention Good for BTC?
At first glance, timely inclusion of #Bitcoin in the Twitter biographies of tech CEOs like Dorsey, Ohanian, and Musk would seem to be beneficial as it would get Bitcoin more exposure and ultimately increase adoption and adoption. Wilson said to Cointelegraph:
“The emerging corporate support that we see for Bitcoin is very important to the revival in prices over the past few months. The Tesla move is the kind of corporate support the cops are using. More corporate support means more generalizability, more adoption. The network effect is here is the key. “
“Musk and Tesla embrace Bitcoin is good news for cryptocurrency”Mai added, “In the sense that it gives credibility to cryptocurrency as a medium of exchange, which is one of the key functions of money according to economists.”
But isn’t it true that these social media measures are also making the price of BTC more irregular, as volatility has long been identified as one of the main drawbacks of the cryptocurrency? When billionaire Salinas, the third richest man in Mexico, added #Bitcoin to his Twitter bio in early February, the price of the main crypto asset topped $ 40,000 for the first time in 23 days.
Mai responded that the entry of big companies like Tesla will more than compensate for short-term volatility and that big companies will make Bitcoin less volatile: “Companies that accept BTC should now have more incentives to stabilize the value of BTC. They don’t want their income to fluctuate significantly from day to day.”
Regarding the recent hashtag bios, Brunton, who is not exactly a BTC cop, said, “It’s good for Bitcoin in the sense that more stocks from the rich means more stocks invested to keep this leaky raft afloat to keep.” However, in his opinion, a better long-term outcome would be to migrate users from BTC to cryptocurrencies “that perform better, are better designed, or have a superior implementation.” Bitcoin, he added, “is the alpha indicator of what cryptocurrencies could be. The more costs have come down, the longer we will hold on to it.”
Isn’t it just a musky fad?
When Elon Musk added #Bitcoin to his Twitter bio on Jan. 29, the effect on BTC was flammable – the price rose 14% in the first 30 minutes. But not all followers understood the richest man’s intentions. Was he joking with his 43 million followers on Twitter? Adding a cryptic Tweet – “In retrospect it was inevitable” – he only dealt with the ambiguity.
However, the picture cleared on February 8 when it was widely reported that Tesla had recently purchased $ 1.5 billion worth of Bitcoin, which has not yet been disclosed. Obviously, Musk’s interest in BTC had been genuine. Musk has since removed #Bitcoin from his Twitter bio. Wilson said to Cointelegraph:
“Now we know that not only Musk is on the side of BTC, but that Tesla is backing it at the corporate level. The strategy has been endorsed by the Board of Directors and the Audit Committee. This is important as this is not just a whim of Musk, it’s one “serious” business investment. “
Brunton was less tolerant of Musk, calling him an “s — poster A-1 who also happens to be a billionaire”. That being said, “#bitcoin is definitely part of the lifestyle starter package for the tech barons and their exhibits. It’s a culture and a scene. It has nothing to do with ‘technology’ as such. “
Elsewhere, it has been suggested that Bitcoin branding CEOs were just using social media to “promote their brand as a crypto-friendly company and get a ton of free publicity.” For his part, Neo believes the markets are oversized right now, “And there are definitely rioters out there who only tweet to ‘have fun’ at people’s expense.” At such times, “it’s even more important that we invest carefully, rationally, and not emotionally,” he told Cointelegraph.
Is Bitcoin the new flag of technology?
Balaji Srinivasan, angel investor and co-founder of Coin Center – a nonprofit that defends cryptocurrency guidelines – has done so recommended In the past, Bitcoin became the new “flag of technology” representing high-level economic values such as decentralization and internationalism.
Among the values contained in Bitcoin technology, as he wrote elsewhere, They are: “internationalist, capitalist, decentralized, hyperdeflationary, networked, encrypted, digital, volatile, ambitious and quietly revolutionary.”
Is that what happens to the #bitcoin movement? Groups of managers waving the new “flag of technology” and looking to identify with a decentralized future that is still evolving?
“Is [BTC] the flagship of all cryptocurrencies and represents the many values inherent in the technology “replied Jay Hao, CEO of the OKEx exchange, although this often means different things to different people:
“It can mean freedom for one person, efficiency for another […] a life raft, speculative asset, store of value, etc. A person whose life savings have been wiped out by hyperinflation and who uses BTC as a means of shielding future wealth will see the Bitcoin flag differently from a trader or an institutional investor. “
Wilson said to Cointelegraph: “I think Bitcoin has always been a movement to some extent: it’s about decentralization and “regaining control” of central banks, governments, etc.“Mark Cuban, the owner of Dallas Mavericks, went a step further, telling Forbes in December that Bitcoin was” more of a religion than a solution to a problem. “
A social movement with shared high-level beliefs? Brunton was skeptical: “Bitcoin is – and always has been – several contradicting social movements that clumsily unite around a currency and a transaction infrastructureAdditionally, he added that beliefs about what Bitcoin is are different for people like speculators, libertarians, anti-statists, etc., concluding that “To say that everyone has common beliefs about BTC is a category flaw.”
Neo said to Cointelegraph: “Flag or not, for the masses out there, it’s not just an investment issue, but also a statement that they support the particular ecosystem or asset in question.”
On the way to mass adoption
Whatever the explanation for the spread of #bitcoin in Twitter biographies, Most bitcoiners are likely to be encouraged by this, although they acknowledge that it’s still a sideline at best.
As Hao Cointelegraph said, BTC “has steadily gained traction over the years – long before that Top business managers will be “late for the party”. “Hashtags are a ‘nice touch’, another sign that BTC is turning into a step, but in the end, Hao added, it’s just another step in the process.” Travel to mass adoption. “