Bitcoin & Data Science
A picture says a thousand words. As you can see from the image above, the interest in Bitcoin (measured by the number of Google searches) has skyrocketed over the last two months as the price approaches the all time high of $20,000. The number of daily searches is still just 50% of what it was at the peak of the 2017 bull market hysteria, but then we haven’t yet crossed into uncharted price territory. If Bitcoin does break through previous all time highs, you can expect the interest and searches to ramp up even faster.
When looking at just the previous 12 months, we can see that we have reached a local high in Google searches. Though a bit of a lagging indicator, some traders have used Google Trends data in trying to predict the direction of the Bitcoin price. Financial analyst Willy Woo popularized this in 2017:
“What we have here is a steady exponential growth baseline with periodic peaks. As covered before, these peaks are are inline with price bubbles, periods where more users head online to check the value of their wealth. Taking readings from the baseline shows an order of magnitude of growth every 3.375 years. Or, expressed in terms of time, the user base doubles approximately every 12 months. (In honor of Moore’s Law, I propose calling this Woo’s Law of bitcoin user growth.)” — Willy Woo
Another interesting thing to note is the data shows that this time around, people are less interested in “crypto” in general and are primarily interested in Bitcoin itself. Hopefully this means we are moving past the hype of “blockchain technology” and focusing on Bitcoin, the true innovation in this space.