With numerous cryptocurrencies like Bitcoin and Dogecoin on the rise, the number of influencers has risen as well. YouTubers, TikTokkers, Businessmen, and any media personality who has a large following has been diving into the Crypto market and trying to influence their followers into buying and selling Cryptocurrencies. While some Crypto Influencers have been rising in terms of their popularity and the number of people that they have influenced. In this article, we will analyze the rise and fall of different crypto influencers like Carlos Matos and also discuss how CryptoCurrency has been on the rise recently.
What is CryptoCurrency?
A cryptoCurrency is a form of online digital payment that a lot of companies offer so that their customers can buy products online. Crypto can not only be used to buy products or services but can also be traded for money. This form of digital money is bought using real currencies. Crypto Currencies use a technology called Blockchain. Blockchain links computers and uses a network of computers for transactions. This makes the process very secure. There are more than 10,000 different cryptocurrencies in the market that amount to a total value of $1.7 Trillion as of May 27.
What is a CryptoCurrency influencer?
Just like Influencers that exist in promoting brands and products on the Internet, Crypto influencers work on promoting Crypto Currencies and sharing more data on them using platforms like Instagram, Facebook, and other similar platforms. They help to make the technicality of CryptoCurrencies clear to normal people who do not understand how Crypto works. Crypto Influencers are very essential to promote CryptoCurrencies as recently digital marketing has been failing to gain the attraction of more investors. Influencers have been very effective in bringing more investors for CryptoCurrencies with data showing that 92% of users would invest trusting influencers rather than following digital ads.
The influence of Crypto Influencers.
There can be no better example than the great man Elon Musk himself to describe how the Crypto Market is influenced by influencers. Elon Musk, who is the second richest person in the world, has been influencing his followers for a long time now on the profits of investing in CryptoCurrencies. The guy who has 55 Million Followers on his Twitter, often tweets on different Crypto Currencies that have a lot of effect on the market rates. Back in 2019 when he announced that he would be investing in BitCoins and Tesla cars can be bought using BitCoin as well, market rates had soared up. Similarly, when he announced in May that he would no longer be offering Tesla cars for BitCoins, the rate of BitCoins got more than halved.
Elon Musk has had an influence on other CryptoCurrencies as well, like DogeCoin. When Elon tweeted that he has been working with the DogeCoin team to make it more efficient, the prices of the cryptocurrency went up by 30%. Every time Elon tweets about CryptoCurrency, it greatly affects the rate of the currency as well as adds more investors to the list as well.
Crypto Influencers who failed:
We believe you all know the infamous Carlos Matos. Carlos was an investor of Bitconnect, a currency that is now defunct. Bitconnect had a value of $0.17 back in 2016 and went to a high of $436 in 2017 before going out of the market in 2018 with a value of $0.40 before being seized by regulators. The YouTuber and Influencer Carlos went into hiding right when the Bitconnect tragedy happened. He had played a major role in getting a lot of users to invest in cryptocurrency.
Similarly, a lot of other big names in the media industry got themselves tied up with Crypto scams as well while trying to influence their followers. Paris Hilton had gotten into a controversy when she partnered up with LydianCoin, whose CEO was convicted for domestic abuse. World-renowned boxer Mayweather and the singer DJ Khaled, got into a crypto scam when they endorsed a company that had scammed investors off millions of dollars. Centra Tech, which sold crypto-based financial products was shut down and its CEO was arrested for scamming. This is a good example of how Crypto companies can scam you and why you should not trust all the influencers either.
What is the future of CryptoCurrencies?
Even though the prices of CryptoCurrencies are still not stable, rates do come down or go up with each passing day, we should not forget that Digital coins are the future. We are all going cashless and CryptoCurrencies are probably the best and most secured option out there to make payments. With each day more countries have been working on regulating CryptoCurrencies and very soon it will become mainstream. Prices might be going up or down, but investing now should help for the future.
There might be a rise or fall in the prices of CryptoCurrencies in the future as well, but that is no reason to not invest. There is something that all investors should do and that is to do more research before investing and not blindly get influenced by Crypto Influencers.