Influence and power have always played a significant part on this planet. From the Middle Ages to this Bitcoin era, influence and power have been able to accomplish many things that the average person cannot.
Let’s say you don’t want to buy something because your favourite movie star is wearing it. Automatically, a desire to obtain that item would arise in your subconscious mind. It’s not that the item is necessary for your daily life; rather, you want to be in a location where your favourite star is present. You’d like to experience a fraction of what he feels while he’s using that item.
This also occurs in our crypto sector, where a small group of people may exert influence over a large number of people’s ideas. Today, we’ll hear about a few of these occurrences.
Elon Musk and Dogecoin
Elon Musk is arguably one of the most well-known entrepreneurs. He later played a significant role in influencing the cryptocurrency market. Take, for example, dogecoin, which is the first meme coin ever developed. Essentially, it was created for amusement, but when Elon Musk put a significant sum in Dogecoin, it gave people hope. Dogecoin’s value skyrocketed overnight, and it became extremely popular. However, as we all know, Dogecoin is currently in freefall. Because Elon mentioned selling his Dogecoin holdings, many people were alarmed and began selling their Dogecoins, resulting in massive volatility.
YouTubePlays a Huge Role
According to a new report, YouTube plays a significant impact in the turbulent crypto market. There have been instances where a well-known YouTuber has simply stated that a crypto coin is going to boom and that people should invest in it. Simultaneously, he has already invested in that cryptocurrency at a low price. When his target audience invests in that cryptocurrency, the price automatically rises, and the Youtuber sells their investment and keeps the profit. People may dominate the market just via their words and influence. And, as a result of these forces, the cryptocurrency market’s volatility has escalated in recent days.
There are some alpha influencers in the crypto world who have tried to manipulate the market to their benefit. It is only recently that digital currency companies have been granted permission to place advertisements on social media platforms. However, when they were restricted, it was influencers who did the work on their behalf. As a result, there has been a trust relationship between individuals and influences. Because people have seen the way, they’ve decided to say something about the next major crypto that’s likely to take off. And then there was the hike, which took place in the literal sense. As a result, influencers have an advantage in influencing the market in the way they wish.
Let’s use a simple example: suppose there is a coin valued at $1. There is now a Youtuber or influencer with 500,000 subscribers or followers. If a person has this large a following, they have undoubtedly found their target market. Now, if someone tells you to invest in that $1 cryptocurrency, you should do it. At the very least, we may estimate that 200,000 people will invest in that cryptocurrency. If everyone buys a minimum of $5 in that $1 in cryptocurrency, the price will skyrocket overnight. This is where the YouTuber makes money since he had already invested, say, $100 in that cryptocurrency. And now that $100 has been changed to $500 with a profit of $400.
However, the problem that is now in front of our eyes is that well-known influencers are increasing market volatility day by day. When Elon Musk announced that individuals will be able to buy Tesla with bitcoins, there was a massive uptick in bitcoin. Elon Musk, on the other hand, recently stated that bitcoins will not be accepted as a payment mechanism for Tesla purchases. This is when people begin to sell their bitcoins, causing the market to plummet. The challenge for retailers is that these giant sharks adjust the market according to their interests.
Big business people and influencers have no such issues because they understand how to manage the entire situation whenever they want. However, retail traders and day traders are affected by this volatility. In a nutshell, in this Bitcoin era, it is dependent on the big sharks but at the same time after getting access to the public through various social platforms. It is slowly changing from influencer-oriented to public-oriented. But Influencers always had the power to manipulate which is never going to completely fade away. If you living in United State, you can check the best crypto legal services firms in the USA.