How cryptocurrency is discussed in the media is important for the volatility of cryptocurrency. This is something that can vary from day to day.
Below we will take a closer look at the reason why this is so. In addition, we will answer some important questions that one has to have control over in connection with cryptocurrency.
What is cryptocurrency?
The very first question one must know the answer to is as follows: What is cryptocurrency?
Cryptocurrency is a digital currency . It is thus a payment method in the same way as our physical currency units. We are of course talking about coins and banknotes.
But there is an important difference between cryptocurrency and coins / banknotes. It is that cryptocurrency is exclusively a digital currency, while coins and banknotes can be both. Coins and banknotes can be deposited on your bank payment card, but cryptocurrencies cannot.
Cryptocurrency is a form of currency that can only be used online.
What does volatility mean?
Initially, we mentioned that how cryptocurrency is mentioned in the media is important for the volatility of the cryptocurrency. Below we will take a closer look at why we say that.
But before we move on to that, there is an important question that needs to be answered. This question is: What does volatility mean?
Volatility is a term used to describe the uncertainty that comes with, among other things, cryptocurrency. In terms of value, cryptocurrency is not a safe choice, because most cryptocurrencies are associated with high volatility. This means that the value increases and decreases at a tremendous speed.
Bitcoin is a classic example of cryptocurrency with high volatility. But there are also a few exceptions to the rule. Stablecoins are known to have a lower volatility than most other cryptocurrencies, making it a slightly safer choice in terms of volatility.
That is why the reviews are important
There are many factors that come into play in relation to how much a cryptocurrency is worth. As mentioned in the introduction, how they are mentioned is an important part of it. But what do we really mean by that?
Who are the people listening to?
First and foremost, it is important to reflect on who people are listening to. Is it the case that someone chooses to steer clear of cryptocurrency because their parents or best friend thinks it’s a bad idea?
Of course, that may be enough, but that’s not what we’re thinking about in connection with reviews . When we talk about the importance of reviews, we mainly think about how cryptocurrencies are mentioned in the media and possibly influencers.
Both the media and the influencers are part of what is called the fourth state power , so these are two “groups” that hold a lot of power in today’s society.
Crypto – why it is safe and a good investment .
Positive and negative publicity
The media and the influences have several things in common. They are more or less free to say what they want, and people have great confidence in them.
If, for example, an influencer has had a bad experience with cryptocurrency and is open about it, then it can lead to people becoming skeptical about it.
But it works the same way the other way around. If the fourth government is positive about cryptocurrency, then it is suddenly not so scary after all.