DeutschIn a 21-page report, Pulsar addresses the general rise of cryptocurrencies in connection with social media. The study primarily examines the behavior of the mainstream.
Total Market Capitalization Rises Due to the Hype
In 2018, the total market capitalization was approximately CHF 500 billion. Bitcoin was on everyone’s lips, the media reported almost daily on new record values, and a hype spread across social networks. At that time, a true FOMO effect could be observed. FOMO (Fear of Missing Out) refers to the fear of investors to miss something. Although this effect has been known for a long time and can be observed in many markets, the volatile price fluctuations in the crypto space caused a real hysteria.
Pulsar’s Approach to the Social Media Study
The Pulsar report primarily deals with the conversations and user data in social media. Price trends, market cap and hash rate are only treated secondarily. It is about the importance of Bitcoin and Co in everyday conversations. To what extent is the mainstream familiar with the topic and who belongs to this mainstream? The study examines the social media discussions, which have a total of almost 5 million mentions on the subject of blockchain. The data is based exclusively on data from the US and English-speaking areas.
Data Collection at the End of 2018
In the report, Pulsar refers to conversations in the period between September 14, 2017 and January 8, 2018. At that time, Bitcoin was racing towards the 20,000 USD mark and pulverizing old records. Overall, the data of over 1.5 million users were evaluated in the study.
The most Important Results
- Bitcoin is Top-Buzz
- Audience is divided into 5 groups of people (“Pop Culture Techies” strongest)
- The understanding of blockchain is inadequate in the mainstream
- Mood divided (pessimism slightly outweighs optimism)
- Cryptocurrencies are losing their reputation as a currency for criminals
- Security concerns are the main barrier to entry
Volatility in Correlation to User Behavior
Prices rise and fall dramatically in the crypto space. At the beginning of 2018, double-digit percentage price fluctuations are the order of the day. But how is the enthusiasm in social media related to the actual demand? In a side-by-side analysis, Pulsar comes to the conclusion that the digital discussions in social media affect the investment behavior of investors. Patterns in social media discussions indicate BTC price movements. Peak values in social media interaction are often followed by new price highs. Accordingly, the conversations clearly influence the price of cryptocurrencies.
Again: Bitcoin is the Driving Force
The study comes to the conclusion that Bitcoin drives the entire crypto market. The term “Bitcoin” comes before “cryptocurrency” or “digital currency”. The well-known first-mover effect of Bitcoin is also reflected in the search volume. Many users hear the word “Bitcoin” before they know the term “cryptocurrency”.
Which cryptocurrencies are best known (after BTC)?
- Ethereum (ETH)
- Ripple (XRP)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- IOTA (MIOTA)
- Monero (XMR)
- NEO (NEO)
- Cardano (ADA)
- Stellar (XLM)
- EOS (EOS)
Demographic Groups
In social media, 66% of conversations about cryptocurrencies are conducted by male users and 34% by female users. 33% have children. Most conversations come from users aged 25 – 34 years.
