The cryptocurrency industry has experienced exponential growth over the last few years, none of which could have happened without a committed community of people with a shared interest in investing in a decentralised asset.
While crypto has exploded recently, the importance of cryptocurrency communities has remained the same, helping projects to be developed before they are launched in the public arena.
To find out more about communities in the crypto world and their importance, read on.
What are crypto communities?
A crypto community is a gathering of people who typically meet on social media platforms, such as Twitter, Reddit or WhatsApp, online forums or blockchain project spaces to share their interest in the sector.
They discuss the latest trends, news, opinions, and questions about cryptocurrency, and use this opportunity to learn more about the industry and its constant evolution.
Bitcoin, which was the first cryptocurrency, was originally introduced in a crypto community, having been invented by Satoshi Nakamoto. Once it was understood and accepted by like-minded thinkers, it launched in 2009, with the value of one Bitcoin originally being $0.0009 (£0.00069).
This is compared with its value these days at $53,010, having fallen slightly from its record of $73,750 earlier this year.
This meteoric escalation in value demonstrates the importance of crypto communities in supporting an idea and helping it launch publicly.
As they are active on platforms, they can share their knowledge, promote digital assets, and encourage their adoption. Therefore, they play a big role in the growth of cryptocurrencies, having helped to develop and build them with their innovation and freedom to collaborate on projects.
This is because members of the community are themselves part of the governing system. They make decisions unanimously by voting, which means there is no authority in each community, and everyone has their role in shaping a new product or change.
As the crypto sector grows and groups that support it expand, there have been new platforms and tools that have emerged. This is making it even easier for people to connect with one another and share their ideas, which is why cryptocurrency is always evolving and improving.
What is the role of crypto communities?
As well as discussing the latest market trends and product launches, crypto communities help to connect beginners, investors, creators, developers, and influencers.
This means any challenges the crypto world faces can be managed by communities, as the different ideas, thoughts and opinions can help to tackle the issues and find solutions.
They also help when it comes to developing a project, deciding on the mortality rate of new innovations, encouraging user adoption, and ultimately, ensuring the success of a blockchain start-up.
These, as well as regularly discussing market trends, help members keep up to date with the direction the project, and cryptocurrency as a whole.
Why are crypto communities important for the sector?
Due to the open conversation about new currencies, market changes, and how spenders are beginning to use the tender, such as with XRPayNet cards, this is helping to drive development and improvement in the industry.
Having open communication and creating a sense of belonging helps to attract supporters, tech builders, and investors who can boost the success of a blockchain project.
These communities, through improving trust and credibility, create money-making opportunities for members. They also increase exposure, improve adoption rates, and boost awareness.
Therefore, new investors are likely to come on board by seeing the support and positive feedback they have given to a new crypto project.
Prospective members see the positive impact of collaboration and innovation in the sector and are, therefore, more likely to join others in investing in it. They might even want to be part of the community themselves, having seen how engaging and encouraging it is.
Consequently, crypto communities have a big role to play in the growth of the sector, which has helped it develop from one cryptocurrency just 15 years ago to a market worth more than $2 trillion, with a large number of currencies, non-fungible tokens and other crypto assets now available to invest in.
The launch of XRPayNet card, for instance, which allows holders to spend or withdraw cryptocurrency around the world, shows just how much the industry has come in less than two decades, all thanks to community teamwork, participation and support.