Social Media's Silent Impact on Bitcoin

For the first time, a link between social media influence and bitcoin value has been found. Bitcoin and other digital currencies have the potential to have significant impacts on financial markets. These technologies are breaking down payment barriers and increasing global market trade. Unfortunately, their potential may be short lived due to ignorance of price fluctuations and technologies.

A Study by Feng Mai of the Stevens Institute of Technology found that the silent majority on social media had a greater influence on Bitcoin prices than the loud, active minority of users. The team analyzed two years of data from Bitcointalk and a few months worth twitter posts, then categorized posts by positive, negative, or other sentiments.

Next, the team separated the users by frequency of posts in comparison with Bitcoin price. They found trends indicating the more frequent posting vocal users had little impact on Bitcoin value, yet the careful occasional posters had significant impacts. Logically, investors don't believe the "hype" of popular posters, but instead trust the word of the silent majority. The determination of Bitcoins' value has wide business and governmental implications. This study is the first of its' kind and shows the importance of understanding our rapidly growing technologies. The findings showed that social media is a determining factor involved in Bitcoin value fluctuations, but value of posts have varying impacts. "Don't buy into the hype"