Celebrities' obsession with crypto reaches new heights in 2022
The new financial era has begun, and celebrities have paved the way in crypto acceptance. Some celebrities are enthralled with blockchain and virtual currencies, which only adds to their allure for the average person. People’s trust in the crypto space has been growing. Therefore it is becoming increasingly popular as a speculative investment choice.
According to market researchers and specialists, the growth in its trajectory will be unprecedented over the next years. Celebrities, particularly in the United States, have had a great deal of influence over their followers. At this time, these celebrities have compelled most of their fans to put money into different areas of the crypto space.
Why are celebrities obsessed with the crypto industry?
Cryptocurrencies have evolved into something that meets almost every one of our requirements through the use of cutting-edge technology. The celebrities recognized the benefits and began a fad around it. Here are some key reasons why cryptocurrencies became popular among our favorite celebrities.
The power of social media has been critical in the crypto world. Social media celebrities have used their platforms to boost cryptocurrency worldwide. Blockchain technology’s basic idea establishes a connection for most global citizens who have been dissatisfied with conventional financial systems.
On the other hand, social media platforms have emerged as sites where celebrities may reach out to a larger portion of their fan base. Furthermore, it creates a duplicitous identity: that of being a renowned celebrity and an active investor in the financial market. Celebrities who make informed decisions on social media, like musicians and actors, have a long-term influence on investors.
The majority of crypto investors follow the high-risk, high-investment pattern. Despite their inherent volatility, tumultuous markets provide excellent returns. The extreme trend is something that sets off a surge of adrenaline in people and makes it highly attractive among millennials.
#Crypto is all about financial freedom, it is a complete lifestyle!— Crypto Jobs (@CryptoJobs) July 25, 2022
One of the reasons why celebrities have such a deep interest in the crypto space is the control over their money is because they are not subject to government or central regulatory supervision. The blockchain network manages all issuance and transaction processing through smart contracts between the two parties.
The market mechanisms are not subject to any form of government intervention. They are entirely demand and supply-driven, with no room for third-party involvement. Another desired aspect of the system is that the non-involvement of any third party in the transaction increases the speed at which money moves from one source to another.
The COVID-19 outbreak gave the online financial network a one-of-a-kind opportunity, making digital currency the most popular payment method worldwide. According to financial experts, global demand for digital currencies and gold rose dramatically in response to the economic crisis.
A surge in demands for money inflow through cryptocurrencies occurred as a result of this. In other words, the epidemic’s financial worry and panic had promoted an interest in cryptocurrencies among celebrities.
Celebrities push for crypto adoption, but at what cost?
The influence of social media is expected to increase across all verticals as a result of the current situation. As more investors use blockchain and virtual assets, the number of investors who invest their money through such methods is growing.
Various factors have influenced the rise of cryptocurrency in the financial world. Furthermore, as technology advances, it will receive the boost it needs to become the preferred and desired way to handle money in the future years.
On the other hand, celebrities’ influence in the cryptocurrency market has not been nearly as prominent. A few months ago, the notion of buying and selling non-fungible tokens (NFTs) to acquire and sell crypto art would seem preposterous, yet Internet trends appear to move at a higher speed.
Celebrities like Paris Hilton, Snoop Dog, Mila Kunis, Matt Damon, and Eminem have helped boost crypto adoption rates worldwide. The list goes on (and on), and the answer is evident in some ways. Celebrity endorsement contracts generally include a hefty salary for the celebrity.
You may love them on the big screen or the basketball court, but you shouldn’t rely on your favorite celebrities and athletes when it comes to financial advice. If something sounds is too good to be true, it probably is. https://t.co/ZpFryjXtdq— Senator Dick Durbin (@SenatorDurbin) August 2, 2022
The issue is that these celebrities have lots of money to invest and are willing to take significant gambles. Their followers, not so much. In an area that is presently largely unmonitored has caused investors massive losses. This, by the way, is why stars are permitted to do crypto endorsements in the first place.
A traditional financial institution like a bank would not be able to hire a famous actor/actress to promote a risky program because they are legally obligated to act in their customers’ best interest.
In theory, cryptocurrency should provide a fantastic platform for individuals previously neglected by traditional banks. In other words, this is certainly feasible. Simultaneously, recent years have witnessed these same people endure disproportional economic suffering.
Ok, repeat after me: Don't rely on a celebrity endorsement for financial decisions. Again, with feeling: DON'T RELY ON A CELEBRITY ENDORSEMENT FOR FINANCIAL DECISIONS!— Zbylut on Taxes (@TaxHacker) May 13, 2022
If you're blaming #MattDamon for your crypto losses, you're blaming the wrong person. #taxtwitter #Cryptocrash https://t.co/pirE7nIdBS
In the proper circumstances, the crypto market is an exciting sector to get rich quickly and free yourself of financial constraints. However, like other traditional markets, it has been defrauded by fraud and pyramid scams. These celebrities have deliberately excluded a portion of the crypto industry from their pre-planned marketing campaigns.
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