The new era of finance has begun and celebrities have paved the way for cryptocurrency adoption. Some celebrities are excited about blockchain and virtual currencies, which only increases their appeal to the average person. People’s confidence in the crypto space has grown. Therefore, it is becoming increasingly popular as a speculative investment choice.
According to market researchers and specialists, the growth in its trajectory in the coming years will be unprecedented. Celebrities, especially in the United States, have had a great influence on their followers. Currently, these celebrities have forced most of their fans to invest money in various areas of the crypto space.
Why are celebrities obsessed with the cryptocurrency industry?
With the latest technology, cryptocurrencies have become something that meets almost all of our requirements. Celebrities recognized the benefits and started a fad around it. Here are some of the main reasons why cryptocurrencies became popular among our favorite celebrities.
The power of social media has been critical in the cryptocurrency world. Social media celebrities have used their platforms to promote cryptocurrency around the world. The basic idea behind blockchain technology is to connect the majority of the world’s population who have been dissatisfied with traditional financial systems.
On the other hand, social media platforms have become sites where celebrities can reach a larger portion of their fan base. Moreover, it creates a dual identity: being a celebrity and an active investor in the financial market. Celebrities who make smart decisions on social media, such as musicians and actors, have a long-term impact on investors.
Most cryptocurrency investors follow a high-risk, high-investment model. Despite their inherent volatility, volatile markets provide excellent returns. The extreme trend is something that gives people an adrenaline rush and makes it very attractive to millennials.
One of the reasons why celebrities have taken such a deep interest in cryptocurrency is the control over their money, which is not subject to government or central regulator oversight. The blockchain network manages all issuance and transaction processing through smart contracts between the two parties.
Market mechanisms are not subject to any form of government intervention. They are entirely driven by supply and demand, with no room for third-party involvement. Another desirable aspect of the system is that not involving any third party in the transaction increases the speed of money movement from one source to another.
The outbreak of Covid-19 presented a unique opportunity to the online financial network, making digital currency the most popular form of payment worldwide. According to financial experts, global demand for digital currencies and gold rose sharply in response to the economic crisis.
As a result, the demand for inflow of money through cryptocurrencies increased. In other words, the financial worries and panic of the epidemic fueled celebrity interest in cryptocurrencies.
Celebrities Are Trying To Embrace Cryptocurrencies, But At What Cost?
Due to the current situation, the influence of social media is expected to increase in all verticals. As more and more investors use blockchain and virtual assets, the number of investors investing their money using such methods is increasing.
The rise of cryptocurrency in the financial world has been influenced by various factors. Also, as technology advances, it will get the boost it needs to become the preferred and preferred way of handling money in the years to come.
On the other hand, the influence of celebrities on the cryptocurrency market has not been nearly as pronounced. A few months ago, the idea of buying and selling non-fungible tokens (NFTs) to mine and sell crypto-art seemed absurd, however, internet trends seem to be evolving at a faster rate.
Celebrities such as Paris Hilton, Snoop Dog, Mila Kunis, Matt Damon, and Eminem have helped boost cryptocurrency adoption rates around the world. The list goes on (and on) and the answer is in some ways obvious. Celebrity endorsement deals usually include a substantial celebrity salary.
The problem is that these celebrities have a lot of money to invest and are willing to take significant gambles. Their followers, not so much. In an area that is currently largely unsupervised, has resulted in huge losses for investors. This, by the way, is why stars are allowed to do cryptocurrency endorsements in the first place.
A traditional financial institution such as a bank would not be able to hire a famous actor/actress to promote a risky program because they have a legal obligation to act in the best interest of their clients.
In theory, cryptocurrency should provide a fantastic platform for individuals previously neglected by traditional banks. In other words, it’s definitely possible. At the same time, these same people have experienced disproportionate economic suffering in recent years.
Under the right circumstances, the cryptocurrency market is an exciting get-rich-quick industry and free from financial constraints. However, like other traditional markets, it has been rigged with fraud and pyramid schemes. These celebrities have deliberately excluded part of the crypto industry from their pre-planned marketing campaigns.