Interplay between Cryptocurrency Transactions and Online Financial Forums
Cryptocurrencies are a type of digital money meant to provide security and anonymity while using cryptography techniques. Although cryptocurrencies represent a breakthrough and provide some important benefits, their usage poses some risks that are a result of the lack of supervising institutions and...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-02-01
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| Series: | Mathematics |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7390/9/4/411 |
| _version_ | 1797395891661832192 |
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| author | Ana Fernández Vilas Rebeca P. Díaz Redondo Daniel Couto Cancela Alejandro Torrado Pazos |
| author_facet | Ana Fernández Vilas Rebeca P. Díaz Redondo Daniel Couto Cancela Alejandro Torrado Pazos |
| author_sort | Ana Fernández Vilas |
| collection | DOAJ |
| description | Cryptocurrencies are a type of digital money meant to provide security and anonymity while using cryptography techniques. Although cryptocurrencies represent a breakthrough and provide some important benefits, their usage poses some risks that are a result of the lack of supervising institutions and transparency. Because disinformation and volatility is discouraging for personal investors, cryptocurrencies emerged hand-in-hand with the proliferation of online users’ communities and forums as places to share information that can alleviate users’ mistrust. This research focuses on the study of the interplay between these cryptocurrency forums and fluctuations in cryptocurrency values. In particular, the most popular cryptocurrency Bitcoin (BTC) and a related active discussion community, Bitcointalk, are analyzed. This study shows that the activity of Bitcointalk forum keeps a direct relationship with the trend in the values of BTC, therefore analysis of this interaction would be a perfect base to support personal investments in a non-regulated market and, to confirm whether cryptocurrency forums show evidences to detect abnormal behaviors in BTC values as well as to predict or estimate these values. The experiment highlights that forum data can explain specific events in the financial field. It also underlines the relevance of quotes (regular mechanism to response a post) at periods: (1) when there is a high concentration of posts around certain topics; (2) when peaks in the BTC price are observed; and, (3) when the BTC price gradually shifts downwards and users intend to sell. |
| first_indexed | 2024-03-09T00:42:39Z |
| format | Article |
| id | doaj.art-179c080783ef45589fd30df9af59093c |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-09T00:42:39Z |
| publishDate | 2021-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-179c080783ef45589fd30df9af59093c2023-12-11T17:43:39ZengMDPI AGMathematics2227-73902021-02-019441110.3390/math9040411Interplay between Cryptocurrency Transactions and Online Financial ForumsAna Fernández Vilas0Rebeca P. Díaz Redondo1Daniel Couto Cancela2Alejandro Torrado Pazos3Information & Computing Lab, AtlanTTic Research Center, University of Vigo, 36310 Vigo, Pontevedra, SpainInformation & Computing Lab, AtlanTTic Research Center, University of Vigo, 36310 Vigo, Pontevedra, SpainInformation & Computing Lab, AtlanTTic Research Center, University of Vigo, 36310 Vigo, Pontevedra, SpainInformation & Computing Lab, AtlanTTic Research Center, University of Vigo, 36310 Vigo, Pontevedra, SpainCryptocurrencies are a type of digital money meant to provide security and anonymity while using cryptography techniques. Although cryptocurrencies represent a breakthrough and provide some important benefits, their usage poses some risks that are a result of the lack of supervising institutions and transparency. Because disinformation and volatility is discouraging for personal investors, cryptocurrencies emerged hand-in-hand with the proliferation of online users’ communities and forums as places to share information that can alleviate users’ mistrust. This research focuses on the study of the interplay between these cryptocurrency forums and fluctuations in cryptocurrency values. In particular, the most popular cryptocurrency Bitcoin (BTC) and a related active discussion community, Bitcointalk, are analyzed. This study shows that the activity of Bitcointalk forum keeps a direct relationship with the trend in the values of BTC, therefore analysis of this interaction would be a perfect base to support personal investments in a non-regulated market and, to confirm whether cryptocurrency forums show evidences to detect abnormal behaviors in BTC values as well as to predict or estimate these values. The experiment highlights that forum data can explain specific events in the financial field. It also underlines the relevance of quotes (regular mechanism to response a post) at periods: (1) when there is a high concentration of posts around certain topics; (2) when peaks in the BTC price are observed; and, (3) when the BTC price gradually shifts downwards and users intend to sell.https://www.mdpi.com/2227-7390/9/4/411cryptocurrenciesbitcoinfinancial forumsBitcointalksocial media |
| spellingShingle | Ana Fernández Vilas Rebeca P. Díaz Redondo Daniel Couto Cancela Alejandro Torrado Pazos Interplay between Cryptocurrency Transactions and Online Financial Forums Mathematics cryptocurrencies bitcoin financial forums Bitcointalk social media |
| title | Interplay between Cryptocurrency Transactions and Online Financial Forums |
| title_full | Interplay between Cryptocurrency Transactions and Online Financial Forums |
| title_fullStr | Interplay between Cryptocurrency Transactions and Online Financial Forums |
| title_full_unstemmed | Interplay between Cryptocurrency Transactions and Online Financial Forums |
| title_short | Interplay between Cryptocurrency Transactions and Online Financial Forums |
| title_sort | interplay between cryptocurrency transactions and online financial forums |
| topic | cryptocurrencies bitcoin financial forums Bitcointalk social media |
| url | https://www.mdpi.com/2227-7390/9/4/411 |
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