How Public Relations Can Reshape Cryptocurrency’s Image
A recent YouGov survey reveals that only around 27% of US residents want to use Bitcoin as legal tender, while 39% of those surveyed opposed the idea. Of those respondents, 28% strongly oppose the move towards cryptocurrency, while 34% “don’t know”. These mixed feelings reflect the overall reputation of cryptocurrency. If cryptocurrency startups want widespread crypto adoption and investment, they need to address the current public perception towards it — and this is where public relations can help.
Issues in Cryptocurrency Adoption
Cryptocurrency is a digital currency that uses an online ledger called ‘blockchain’, which has strong cryptography to secure online transactions. Blockchain is a specific type of database which allows decentralized data storage, so no single person or group has control over the information. Once data is entered into the blockchain, it is irreversible and transactions are permanently viewable to everyone.
Because blockchain is decentralized, there is now a near-endless list of cryptocurrencies utilizing this technology. At present, the top cryptocurrencies on the market are coins like Bitcoin, Ethereum, Tether, and XRP. The worth of some coins — like Tether — are tied to the US dollar, which is why they’re called stablecoins. All of them, however, remain reliant on blockchain. Unfortunately, consumer understanding of cryptocurrency and blockchain is poor. Among the general population, only 25% have any idea about blockchain; most people who recognize the term don’t necessarily understand it.
This confusion is understandable, as blockchain is a relatively unfamiliar technology. Additionally, most people believe the worth of cryptocurrency is purely speculative; people buy them on the assumption that other people value them. Stablecoins aside, cryptocurrencies aren’t backed by anything because they aren’t legal tender, nor are they controlled by a central bank. This is why crypto experiences extreme price volatility, which is beyond the risk appetite of most people. Others think crypto is only valuable because they’re scarce. The lack of trust, protection, and regulation for digital currencies leads to little public awareness, which is the main barrier that crypto must overcome.
Helping Crypto Go Mainstream: The Role of PR
Cryptocurrency and blockchain can power genuinely useful applications, and it’s a shame that many promising startups have yet to be discovered. The first thing a cryptocurrency company should address is regulation. Regulatory concerns are a major hurdle facing crypto-asset markets, and crypto executives should accommodate regulators to ensure field compliance. By improving the crypto framework to mitigate fraud, crypto startups can reduce risk and encourage wider adoption.
From there, public relations can further crypto’s move towards the mainstream. As we discussed earlier, their market remains poorly understood despite its speedy growth, which indicates consumers should be educated about crypto products. PR agencies can craft campaigns that introduce and familiarize audiences with different cryptocurrencies, trading platforms, and strategies. They can also prepare messages to remove lingering skepticism about blockchain technology, and address misconceptions as well.
Furthermore, public relations teams can develop a crypto firm’s brand identity and win industry authority. With a higher status and thought leadership, crypto startups can position themselves as credible, transparent, and reliable. Instead of looking like a risky venture, cryptocurrency can become a key investment type alongside stocks, bonds, or commodities. A constant communication strategy would also build positive community relations among potential consumers and investors, so they become aware of what a crypto startup will do next. With strong investment relations backing crypto, startups can meet potential investors that fit their ideal profile, like their product, and support their cause. Creating a network that encompasses regulators, investors, and consumers would definitely allow crypto firms to dominate the competition.
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Patricia Baronowski-Schneider
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