Altcoins have been on the news a lot recently, especially with the uncertainty surrounding the world economy.

There are new digital currencies coming mainstream. Pioneer coin, Bitcoin (CRYPTO: BTC), and deFi like Dogecoin (CRYPTO: DOGE), Tether (CRYPTO: USDT), and Ethereum (CRYPTO: ETH) are enjoying mass adoption like never before.

Here, we want to explore the effects of BTC and altcoins on digital marketing. How exactly will these coins change the online marketing landscape?

But before we explore the impact of cryptos on digital marketing, let's briefly explain what crypto and Bitcoin are.

What Is Cryptocurrency?

Cryptocurrency, crypto for short, is a virtual or digital currency secured by cryptography. This form of security makes it very difficult to double-spend or counterfeit. Many of the cryptocurrencies traded today are decentralized networks based on blockchain technology.

What is blockchain technology?

It is an open, distributed ledger whose duty is to record transactions in code.

Think about it this way. A bitcoin technology is similar to a virtual bank account distributed on thousands of computers worldwide.

Transactions on this virtual bank account are recorded in "blocks." All transactions past and present are then chain-linked together.

Or you could think about blockchain technology as a record book where you input all the expenses you incur daily.

Each page in this book represents a block. And the whole record book, meaning all pages together, is the blockchain.

On a blockchain, all crypto users have a copy of past and present transactions. This is because the computer code simply logs all transactions as they occur in real-time. Then, it updates the blockchain with new information for everyone to see.

One defining characteristic of crypto is that they are not issued by any governmental authority. As a result, they are immune to government manipulation and interference.

Bitcoin is the pioneer cryptocurrency. The first blockchain-based digital coin is roughly equivalent to 2.1% of the world’s narrow money supply.

What Is Bitcoin?

Bitcoin is a cryptocurrency created in 2019. The creator, Satoshi Nakamoto, is unknown to date. However, the hype surrounding Bitcoin mostly has to do with its rising value and crypto trades. This is primarily due to recently reaching an all-time high price of $68,521 on November 2021.

Astonishing!

Another interesting fact about Bitcoin is that you can buy and hold it like a stock, hoping that the value will increase with time.

Businesses are beginning to accept Bitcoin for payment of goods and services because there are no card processing fees associated with it, unlike traditional fiat.

So, are you intrigued and wondering how to buy some Bitcoin?

There are hundreds of marketplace exchanges where you can buy and sell digital currencies. The following exchanges are listed on coinmarketcap:

With the mass adoption of cryptos and the ever-increasing use of blockchain technology, stock exchanges are now extending their services to cryptocurrencies. This is to help traders buy and sell using their platform. For instance, WeBull and Robinhood now allow traders to buy and sell cryptos directly.

In addition, people are also starting to trade cryptos via personal computers and mobile apps. This process is similar to sending digital cash through online payment services like Cashapp, Venmo, and Apple Pay.

Although buying and selling Bitcoin has plenty of benefits, it is also fraught with risks that you need to be careful about. 

For instance, crypto wallets are not regulated by SEC. They are also not insured by the FDIC. Cryptocurrency exchange and wallets domiciled in the cloud can be hacked. Wallets living in physical computers can be accidentally deleted or destroyed by computer viruses. Therefore, you need to be careful in the crypto world.

 How many cryptocurrencies are there?

How many cryptos are in circulation? According to data available on CoinMarketCap, there are over 13,500 crypto projects in existence. There are new entrants all the time, each with a different backstory and use case.

The crypto market cap fluctuates regularly. This is majorly influenced by the performance of heavy-weight digital assets like Ethereum and Bitcoin. At the time of writing, BTC constitutes 66 percent of the total market cap. However, this market share may dwindle if altcoins go on an extended bullish run.

According to coinmarketcap, the top five cryptocurrencies Ethereum, Binance Coin, Tether, and Solana, represent over 65% of the cryptocurrency sector’s market capitalization. Many of these altcoins have a valuation in tens of millions. Often, the coins in the two last spots drop out altogether, replaced by new cryptos. 

The Impact of Cryptocurrencies on Digital Marketing

1. Easy transaction

Online marketing is facilitated by e-commerce giants like eBay and Amazon that make money charging both sellers and buyers on their platform. However, to facilitate trade, buyers are mandated to enter their account details for verification of identity. This makes completing digital transactions time-consuming and complex.

With the introduction of cryptos, the process becomes simpler as marketplaces and middlemen will not be required. In addition, if digital coins are accepted as means of payment for goods and services, it effectively eliminates the need to verify bank accounts. As such, the process of buying and selling becomes less-time consuming and complex.

2. Basic Attention Tokens

Another important example of how cryptos can transform digital marketing is the Basic Attention Token (BAT). This is a digital advertising token that serves as an exchange where publishers, users, and advertisers communicate in a decentralized manner. This technology is built on the Ethereum blockchain network. It monetizes attention by paying users to watch ads with non-essential expenses eliminated.

3. User anonymity and autonomy

The risk of user data being sold to the highest bidder in dark forums is a cause of concern among e-commerce users. Certain social networking sites sell users’ data to companies allowing for specific ad targeting. When the digital marketing world leverages the powers of blockchain, this problem will be solved. Customer information can be securely stored in block ledgers that cannot be stolen, manipulated, or sold to anyone.

4. It facilitates international trade

Inter-country financial transactions are often expensive and complicated, owing to currency differences and deduction of overhead charges. If cryptos are adopted for e-commerce transactions, international trade will become easier.

In addition, since cryptocurrencies are not regulated nor owned by any government authority, there are no differences in currency valuation across countries. This will encourage small businesses to participate in international commerce, opening up the economy and avenues to profit.

5. Consumers will become stronger than companies

Digital commerce relies 100% on consumer data. Businesses plan their online adverts leveraging these important details. They identify customer preferences and push adverts to customers based on the data. The use of cryptocurrency in e-commerce will bring a power shift, as companies will not have the data for targeted ads.

6. Companies will buy data from customers directly

As mentioned above, digital marketing depends a lot on customer data extracted majorly from social media. Giant advertising brands purchase user information from Facebook and other social networks for targeted ads.

When there is an adoption of cryptocurrency in the digital marketing world, there will be a change. Since there won’t be cookies tracking user activities on social media, there won’t be data to sell to the highest bidder. As a result, companies who want to run adverts will need to purchase needed information directly from customers. 

7. Online advertisements would change

Online advert is a crucial part of any digital marketing strategy. Customers are shown ads online, which leads to buying a product that meets a need. The impact here is dependent on how users decide to carry out their transactions and the mode of payment.

For users paying with a credit card, harvesting spend details is possible. However, this is very difficult for cryptos as they do not store a history of online purchases. Therefore, only the user knows the products and services he spent money on.

8. Low budgets for online advertising companies

It is a known fact that the adoption of cryptocurrency in the digital marketing world will impact the activities of online advertising companies. But it is not all gloom. These companies pay top dollars to buy consumer information for targeted adverts. This will change.

When crypto is adopted in digital marketing, brands will no longer need to pay huge sums to get customer information. This means better financial results as huge sums will be saved. In addition, collecting user data from social media giants like Facebook and Google is never easy. The whole process becomes complicated because there are no other effective channels to reach the customers except through the same social platforms.

There are zero monetary histories stored with cryptos; brands will be required to source needed data from customers, directly bypassing social media and cutting expenses.

Conclusion

Cryptocurrencies like Bitcoin (CRYPTO: BTC), Dogecoin (CRYPTO: DOGE), Tether (CRYPTO: USDT), and Ethereum (CRYPTO: ETH) are gradually taking over the online business world. As a result, many businesses are gravitating towards transacting with these coins rather than the traditional, cumbersome banking procedures. These coins are powered by blockchain technology and utilize decentralized networks.

In all, the impact of cryptocurrencies on digital marketing is bright. But there are some socioeconomic hurdles to scale before we reach utopia. The road to this decentralized future is long and winding and will require plenty of effort to attain.