Many people have wondered if social media insights have been a core driver behind cryptocurrency prices.
The cryptocurrency community had been before now given few opportunities in traditional media. Social media, it seemed gave the community an opportunity for interactions and even growth.
Anyone can now measure social media insights through a little-known tool known as CoinChat. E-Crypto News reached out to the CoinChat Creator (Brad) to talk about his creation. Here is what he had to say.
PS: Brad wishes to remain anonymous.
Brad, Creator of the CoinChat Social Media Insights Tool
- How does Coin Chat Work?
Coin Chat measures public demand for Bitcoin through global social media/search activity. It does this by cultivating data insights (i.e. global “Bitcoin” Tweet volume, global “Bitcoin” Google search volume, Twitter follower growth of key Bitcoin influencers, Twitter mentions of key Bitcoin influencers and more). We believe there’s a direct link between the amount of people talking about Bitcoin online and its price/demand – more people talking about Bitcoin = more demand.
2. What kinds of insights can be gained from the usage of the tool?
The main insight we attempt to capture is a snapshot of the global conversation that’s happening around Bitcoin. At a glance, our users can see how many people are Tweeting or searching “Bitcoin”.
3. How did you come up with the idea to build the Coin Chat platform?
As Bitcoin enthusiasts, we’ve always been fascinated by this space. We think capturing a snapshot of the global conversation can be a very powerful tool in predicting price movements. Initially, we built the tool for our personal use, but it’s something we now want to share with the world.
4. What are the key metrics that Coin Chat measures?
As mentioned above, we look at metrics such as global “Bitcoin” Tweet volume, global “Bitcoin” Google search volume, Twitter follower growth of key Bitcoin influencers, Twitter mentions of key Bitcoin influencers to provide a snapshot of the global conversation happening around Bitcoin.
5. What other projects are you working on?
Between buying the Bitcoin dips, HODL’ing and working full time, Coin Chat is our only project at the moment.
6. How deeply do social media interactions affect cryptocurrency prices?
It’s a tricky question to answer categorically and we don’t tend to offer specific investment advice. What we will say is, if you look closely at the 3 year historical data on our website (Bitcoin price and Tweet volume), you’ll see there’s a pattern that emerges.
When there have been notable jumps in Bitcoin price, there’s been notable spikes in global Tweet volume. We find this link fascinating. Obviously, where the link becomes valuable is if you can use the spikes to predict where the price is heading.
7. What is the relationship between search engine queries and cryptocurrency prices?
Search engine queries reflect how many people are searching for “Bitcoin”. A lot of these are people that have yet to invest and are looking for more information. For this reason, it’s a very valuable insight and represents another form of demand.
Twitter is about outward communication – talking at the world. Search is about people seeking information. Both speak to a different side of demand.
8. If you had a crystal ball, what would be your predictions for the cryptocurrency space in the new year?
As investors and HODLer’s, we’re probably biased at Coin Chat. One observation we will make is that Tweet and search volume hasn’t even come close to the levels of December 2017.
In fact, as well as Bitcoin has done in the past couple of months, we’ve probably only seen about 60% of the Tweet/Search volume of Dec 2017. This says to us that there’s still a lot of people not talking about Bitcoin. What happens when they do start talking again…