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  • Emily King

How Cryptocurrency Is Impacting Digital Marketing

Updated: Apr 24


How Cryptocurrency Is Impacting Digital Marketing

We have been hearing about cryptocurrency for years now. But just because we hear about it doesn’t mean we really understand it. This can be a problem as alternative forms of currency have become a gradually growing field.


With their gaining popularity, it’s no surprise that cryptocurrency is now impacting the digital market. Digital marketing has a large impact on businesses, no matter their size. By investing in cryptocurrency, you can help your company’s future growth. But to invest, as I said earlier, you need to understand what you are investing in.


Cryptocurrencies: What Are They?


In simple terms, crypto is virtual money that is nearly impossible to forge. When you make a transaction using cryptocurrencies such as Bitcoin, it is recorded in code that produces a ledger known as blockchain technology.


Blockchain technology utilizes many devices rather than a single device to save the information distributed from the ledger, making your information much safer. Like online banking, each transaction you make via crypto will be kept on a record you can access, including the blockchain. Also, government interference is rare because no sector or division issues cryptocurrencies.


Breaking Down Bitcoin


Bitcoin was the first blockchain-based cryptocurrency to be introduced in 2009 and has remained the most popular form of crypto since then. As of late, the price to buy Bitcoin has skyrocketed, considering all of the trading that has been happening. Perhaps Bitcoin's best trait is that there are no credit card or processing fees.


Where Can I Get It?


Although there are countless exchange marketplaces to purchase and sell Bitcoin, there are also many options to buy from home called Antminers. A Chinese business, Bitmain, first developed antminers. Their main focus was on developing hardware technologies that allowed the earning of money through a process called mining.


Bitcoin runs without a central bank and instead manages its transactions through peer-to-peer technology. As Bitcoin is an open-source, no one person can own or control it, and anyone can participate. Because of all of these unique characteristics, Bitcoin can be used in ways that other payment methods cannot.


Risks Involved


Though Bitcoin is excellent for making money, users should also be aware of a few risks. For instance, the Federal Deposit Insurance Corporation does not insure Bitcoin wallets, meaning that if your Bitcoin is stolen, you won’t be reimbursed. Along the same line, wallets kept in devices such as The Cloud have been hacked, unintentionally deleted, or completely destroyed by viruses.


Digital Marketings Role


We must examine existing scenarios to understand cryptocurrency's effect on digital marketing fully. One such example is those small advertisements you see in the middle of videos you watch on social media. Advertisers pay publishers a commission to give them that ad space (provided by the platform; thus, they must pay through the platform), and the platform receives most of the funds.


Taking A Closer Look At Blockchain


Blockchain’s number one benefit is that it allows a company to collect large amounts of data about customer preferences by monitoring apps. This allows for the tailoring of customer experiences to fit each customer exactly. One example is the recent addition of users’ choice in what kind of ads they want to see.


These ads raise awareness about products and services while benefiting the platform, publisher, and consumer. However, considering they are still ads, they can be irritating once interest is lost in the products. An offered solution for this irritation is the addition of crypto marketing.


By adding cryptocurrency to digital marketing through a BAT or basic attention token, you can monetize attention and eliminate some of the unnecessary aspects of ads (expenses included). BATs would benefit all involved parties, from the publisher to the user, as you would be compensated for your attention. By now though, you’re probably wondering how it works.


How To Use BATs


BATs are available for purchase by advertisers who in turn for their purchase, will gain feedback on whether or not the public likes the product being advertised. If viewers are interested in purchasing a BAT, they can choose which ad they would like to see and, as mentioned before, will be reimbursed just for paying attention to it.


Users will be able to learn more about the brand and other items they offer by doing so. Users are then rewarded with a percentage of the BAT being used by the advertisers. Since both advertisers and users are compensated, the publisher receives the largest portion of the compensation. Premium services can be easily integrated by charging for the usage of BATs for content/subscriptions.


Effects Of Crypto On Digital Marketing


Blockchain technology offers users control rather than marketers. Before, decisions were made from campaigns based on consumer data, but now, they are made by a limited customer pool.


Blockchain is increasingly affecting every aspect of businesses, especially marketing teams. It can be used to reach different marketing objectives while meeting user expectations regarding transparency and safety. For marketers though, blockchain technology's most significant impact is accessing users’ private data.


Though now it may seem that Bitcoin, blockchain, and BATs are the way of the future, much can change in a short amount of time. The risks mentioned prior leave its future suspended in a state of unknowing. For now, though, Bitcoin remains an evolving and quickly progressing field.

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