Cryptocurrencies are a buzzing topic nowadays. Bitcoin hitting new records, as well as other coins, are inflaming investors’ minds. But not only theirs. Financial institutions and governments are also observing the situation. However, they are more anxious and susceptible than excited. There are many challenges crypto PR face. Why? That is a question I will try to answer in this blog.
It’s worth explaining first what cryptocurrency is. According to Investopedia, cryptocurrency is a digital or virtual currency secured by cryptography, making it nearly impossible to forge. There are hundreds of different coins. Many of them rely on the blockchain – a specific kind of database helping to secure the integrity of transactional data.
What are the challenges crypto PR faces?
Cryptocurrencies are independent of governments and traditional financial systems. It gives users privacy but also a grey area for criminals, which is often the most questioned issue regarding crypto. Various opinion leaders point out that cryptocurrencies are a handy tool for criminals to launder money and finance illegal activities.
Governments worldwide think about regulating the crypto market, but there is no result besides banning or limiting using cryptocurrencies in some countries like Egypt and China. Crime financing by cryptocurrencies is a significant issue, but the rising popularity among individual investors shows that it doesn’t overwhelm the new system’s advantages.
In the new, digitised world, every non-cash transaction is traceable what many people find inconvenient. A financial system based on blockchain is quicker, cheaper, and more transparent, as every transaction is easy to verify. Transparency of cryptocurrency’s deals can be a great foundation to build trust between the organisation and key stakeholders, who will verify how and what is financed. Cryptocurrencies also eliminate the middle-man in transactions like banks and other financial institutions. Arrangements between partners are direct and safe, as well as transparent.
The other challenge is the enormous volatility of the market. Recognised investors like Warren Buffet claim that crypto-frenzy will end sadly for investors with losing much money. So far, the crypto market is getting stronger and more mainstream than it used to be. Companies like Tesla and Microsoft accept payments in Bitcoins, which helps build credibility to the whole crypto market. It is impossible to predict whether there will be a massive dump in Bitcoin price and other coins following it. But for now, perspectives are brighter than darker.
Who is the potential target?
Apart from a challenging product, targeted audiences differ from each other a lot. To simplify, I divide them into two main groups: people involved in the crypto community and those who are green but want to find out what it is all about. The first group is knowledgeable, and maybe they have already invested in some coin. Probably they have already read articles and forums like CoinDesk. The second one usually heard something about bitcoin from a friend or mainstream media, and they started to research the topic by themselves.
Both audiences look for something different, and they need targeted key messages and tactics. It is crucial to find a good balance between them and make sure that both are informed appropriately. It is also challenging to find them (particularly knowledgeable) in mainstream media, so the better focus here is CoinDesk, Steem.it, Bitcointalk, Cointelegraph, and Bitcoin News. As they value privacy, they are often not present on Facebook or Twitter. They instead use Reddit, Slack, or Telegram to communicate with each other.
Crypto PR is a new and emerging branch of the PR industry. It is very promising, and the number of agencies specialising in crypto PR is increasing significantly. The challenges are difficult to overcome but definitely worth explaining to the broader auditory. Blockchain is a technology that allows transactions quickly and privately and has many applications in different industries like medicine, IT, logistics, and many more. Ethical usage of it is crucial and could bring many benefits to society.