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Cryptocurrency Technologies: Communication Theories Essay

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Updated: Oct 23rd, 2020

Introduction

The fascination with the cryptocurrency and the digital money trade has recently gained great popularity among people of different incomes, gender, age, etc. It is quite natural since today, this type of money called Bitcoin is one of the most valuable world currencies, which has an extremely high course and is therefore very rare and desirable for many. Over the past year, many people joined the movement in support of the search and resale of the cryptocurrency, and many were unconsciously guided by some communication theories.

Those efforts that are used by Internet users around the world have certain and often selfish motives. Therefore, the concept of buying and reselling the cryptocurrency implies following the communication privacy management theory, as well as the uncertainty reduction theory, which is caused by the natural desire of the majority of the Internet users to enrich themselves.

Summary of the Context of the Cryptocurrency Trading

Bitcoin as a world-recognized electronic currency was most widely spread in 2017, even though it had been created much earlier (Fetisova 162). However, it was in 2017 when the course of this virtual money reached a large size (more than $7,000 per Bitcoin) (Fetisova 162). Any interested person can act as a market participant. The fact is that the earnings procedure of electronic money is not very simple; nevertheless, ordinary residents found a way to correct this situation: they began to use third-party websites and other resources as a platform for their earnings. The popularity of this currency is possible because this type of payment is quite convenient. However, such a large exchange rate concerning other money confirms the uniqueness of this means of trading and makes it possible to evaluate it as the most expensive currency.

Media to Disseminate the Communication

The main source of Bitcoins distribution is the worldwide Internet since this money is primarily a virtual currency. Nevertheless, news about it regularly comes through other media – radio, television, newspapers, etc. It allows talking about the popularity of Bitcoins and their acquaintance among the majority of users. According to Narayanan et al., traditional ways of trading gave way to new and promising ways because of the global fascination with the virtual world and the post-popularization and expansion of the Internet (172). It is difficult to find a person who does not know about the existence of such currency as Bitcoin, even if this person is representative of another race, gender, etc. It confirms the rapid dissemination of information on a new way of trading.

Impact of the Messaging on the Dissemination

Due to increased attention to the cryptocurrency, certain financial trends and principles are emerging in the world. Thus, according to Harwick, cryptocurrencies “will be able to grow outside of established regulatory structures until they become too big to ignore” (569). In other words, advertising and increased interest in such a financial and economic phenomenon as the emergence of a new world currency, albeit electronic, cannot leave the world financial balance the same.

In any case, there are several people with more and fewer Bitcoins earned through advertising. Messaging plays an important role in this process since many deals occur not only inside the network but also go beyond the trading exchange, which makes the process of buying and selling Bitcoins a unique and special procedure, at the same time similar to the standard methods of currency exchange.

Stakeholders’ contact today can be realized in different ways. Nothing is surprising in that many buyers and sellers communicate with one another through social networks since this method is one of the most common today (Dainton and Zelley 220). Accordingly, free communication and the absence of serious exchange conventions do not stop participants in the trading process from actively working and making a profit. Even though studying the ways to buy and sell cryptocurrency takes some time, many Internet users decide to deal with such a thing, inspired by the widespread successes in the media. Therefore, messaging plays one of the key roles in the process of forming the Bitcoin’s stability background.

Actual Acts of Communication Arising in the Cryptocurrency Controversy

As it was mentioned before, many people decide to buy and sell the cryptocurrency without having special skills to trade on the stock exchange or assess the growth and fall prospects. Certainly, this type of activity is accessible to any person, and no one has the right to prohibit it since it is a free activity that does not have any conflicting motives (Reijers et al. 134). Nevertheless, the primary contradiction of such an activity is the incompetence of the majority of Internet users who want to take advantage of trades but do not have an idea about the rules of doing business in this direction. It, in turn, leads to the fact that a large number of people quickly abandon the idea of ​​working with cryptocurrencies because of the lack of experience hurts the result of work.

As Fry and Cheak note, mathematical analysis and accurate calculation are important components of perspective assessment (343). However, many participants of the global trading network on buying and selling the cryptocurrency have no idea concerning how much work should be built and are guided solely by intuition and personal motives. For example, the communication privacy management theory can be used about this type of work since this concept considers personal values ​​and interests as unique and fundamentally important (Dainton and Zelley 221).

Thus, a person is looking for contacts of people or companies to establish a profitable partnership, for example, to exchange available Bitcoins for another currency. Nevertheless, in the case of an incorrect interpretation of the terms of this communicative theory, likely, this person will not find clients because an exclusively personal desire for enrichment is not an occasion for success. It is necessary to have entrepreneurial skills and at the same time have the ability to persuade. If such skills are not available, the probability of failure is high.

Another theory to which some beginner brokers resort is the uncertainty reduction theory that involves looking for third parties to confirm or approve certain ideas about a potential partner (Dainton and Zelley 42). Unable to use all available data, a bidder can build an incorrect image regarding a potential buyer or seller. It, in turn, negatively affects further cooperation and can lead to growing inconvenience between the two sides. To prevent it, it is significant to study the features of communication with partners, especially if it is a question of such a contentious issue as the cryptocurrency trade.

Theory-Based Suggestions to Improve the Situation

In order not to fail and achieve success in the described field, it is required to resort to the communication theories themselves to take advantage of their foundations and possibilities. Thus, for example, the communication privacy management theory will be effective if one of the trade initiators preliminarily thinks through the actions in advance to anticipate events and predict their turn (Dainton and Zelley 221). For instance, first, it is essential to study all the conventions of working with the cryptocurrency, calculate all possible options for deposits or sales, compare market prices, etc. If this work is not conducted, the whole procedure may fail due to an oversight or self-confidence. It is important to timely make a forecast because such an approach to work is professional and reasonable.

The uncertainty reduction theory will be effective if a person intentionally strives to learn more about his or her potential partner (Dainton and Zelley 42). If such actions are not taken, cooperation will likely be unsuccessful. It is necessary to ensure that there is no uncertainty left, and it will be easier and more comfortable to collaborate on mutually beneficial terms.

Conclusion

Compliance with the terms of special concepts, in particular, the communication privacy theory, as well as the uncertainty reduction theory can lead to significant success in the sphere of trade and the purchase of cryptocurrencies. This work requires detailed forecasting and the consideration of different market factors. The lack of experience can adversely affect the success of the whole plan. The efficiency of activities can be determined by using several profitable partners and financial profit.

Works Cited

Dainton, Marianne, and Elaine D. Zelley. Applying Communication Theory for Professional Life: A Practical Introduction. 3rd ed., Sage Publications, 2014.

Fetisova, Tatyana. “Economic and Legal Issues of a Bitcoin Actual Paradigm, or Bitcoin: Listen, if Stars are lit it Means-There is Someone Who Needs It.” Knowledge E Social Sciences & Humanities, vol. 3, no. 2, 2018, pp. 162-169.

Fry, John, and Eng-Tuck Cheah. “Negative Bubbles and Shocks in Cryptocurrency Markets.” International Review of Financial Analysis, vol. 47, 2016, pp. 343-352.

Harwick, Cameron. “Cryptocurrency and the Problem of Intermediation.” The Independent Review, vol. 20, no. 4, 2016, pp. 569-588.

Narayanan, Arvind, et al. Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction. Princeton University Press, 2016.

Reijers, Wessel, et al. “Governance in Blockchain Technologies & Social Contract Theories.” Ledger, vol. 1, 2016, pp. 134-151.

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