Twitter launched its much-anticipated Bitcoin tipping feature for iOS users on Wednesday. The social media platform also announced plans to support NFT authentication, which would allow users to track and display their NFT ownership on Twitter.
tested the Tips feature, turns out people love money
rolling out on iOS with Android coming soon pic.twitter.com/pkmLHzg6fu
— Twitter (@Twitter) September 23, 2021
Following the announcement, Twitter’s stock price increased by approximately 4%, providing investors with a boost in confidence. A similar effect was seen in Tesla’s share price in February, when the carmaker announced a $1.5 billion purchase of BTC, resulting in a 2% increase in the share price. While the company later removed the functionality due to environmental concerns, it will “most likely” accept Bitcoin again.
Twitter is experimenting with blockchain integrations.
Twitter is the first social media platform to accept Bitcoin payments. This could indicate a desire to compete with rival platforms such as Facebook, which has previously expressed interest in the crypto space with their Diem project.
Twitter’s product lead for creator monetization, Esther Crawford, stated:
“We believe we can continue to incentivize the kinds of conversations people want to see.”
Twitter’s new tipping system is a hybrid of Reddit’s karma and upvoting system, as well as tipping seen on platforms such as Twitch, where streamers can receive donations from their fans.
The microblogging service in the United States also announced plans to create a fund to compensate users who host audio chat rooms on its new Spaces feature. The fund is intended for creators who host recurring audio programming on Spaces.
Twitter also announced the addition of a feature to verify NFT ownership, allowing users to showcase their NFTs on the platform. Discord has previously done this with platforms like Collab-Land for MetaMask integration, so it will be interesting to see if Twitter does something similar or develops its own tool in-house for this.
Twitter’s Opinion on Crypto
Following the announcement, a number of users took to Twitter to share their reactions. @cjking711 said this is crypto’s “Netscape” moment, alluding to how this new feature will drive more people to Bitcoin and cryptocurrencies in general.
Until Internet Explorer took over, Netscape was the dominant internet browser. The analogy is appropriate, as Netscape was the first browser to attempt to advance the capabilities of the World Wide Web, much like Twitter is doing here with Bitcoin and blockchain payments.
Twitter integrating #Bitcoin is this emerging asset class’s “netscape” moment.Education, access, and ease of use continue to be the strongest drivers of adoption.— Chris King (@cjking711) September 23, 2021
The economic hardship caused by the pandemic may have pushed more people into the crypto industry, resulting in unprecedented Bitcoin adoption. That situation persisted into 2021, when the Consumer Price Index for All Urban Consumers (CPI-U) reached 2008 levels, prompting many to turn to cryptocurrencies as a means of hedging against inflation.
Overall, the events of 2021 proved to be a powerful driver of Bitcoin adoption. Twitter’s 350 million users are now potentially exposed to Bitcoin, according to @TheMoonCarl.
Twitter has announced that it will now allow users to tip content creators using #Bitcoin!This is massive, as Twitter has over 350 million users!Mass adoption is coming!— The Moon (@TheMoonCarl) September 24, 2021
Twitter’s active user base has increased this year, and the platform has outperformed Wall Street expectations. This is in contrast to a few years ago, when it was said that its user base was declining.
@PrestonPysh also suggested that users have the option of having any received donations sent to Bitcoin developers instead.
Hey @jack if people don’t want to accept their Bitcoin tips on twitter, they should be able to toggle their settings off so all funds then flow straight into a #Bitcoin developers donation account. Just an idea.— Preston Pysh (@PrestonPysh) September 23, 2021
However, not everyone is ecstatic about the new feature. Because Twitter isn’t really a creator hub, one user, @iamDCinvestor, argued that a tipping feature isn’t really necessary.
the problem with tipping is there’s not much reason to transact on this sitei guess you can charge for access to articles? spaces? idk what. even then, USD seems a better currency than BTCbut trading NFTs and other digital assets?well, that’d be a lot more interesting tbh— DCinvΞstor (@iamDCinvestor) September 24, 2021
Nonetheless, data from the leading blockchain analysis firm Glassnode shows that the Bitcoin Lightning Network is currently at an all-time high, up around 226 percent from the levels seen in 2019-2020.
#Bitcoin Lightning Network now at an all-time-high of over 72,380 open payment channels.
This is up 226% from the stable baseline of ~32k channels established throughout 2019-20.
— glassnode (@glassnode) September 24, 2021