Bitcoin & Data Science
Over the years, the Bitcoin community has used several platforms for communication. The very early users were members of the Cypherpunk Mailing List, where Satoshi Nakamoto first announced he was launching the Bitcoin network. Soon thereafter a dedicated Bitcoin Mailing List was started, which is still used by developers today. For Bitcoin users, their first social discourse was on bitcointalk.org, rarely used today. After a few years the main discussion had moved to r/Bitcoin on Reddit. Today, the most popular platform for Bitcoin discussion is Twitter by far. “Bitcoin Twitter” has tens of thousands of daily users.
Similar to my earlier piece on looking at Bitcoin Google Search Trends, it is interesting to look at the data around Tweets mentioning Bitcoin over time. In the chart below which begins in 2014 (before then most of the discussion was on the platforms mentioned above) we can see the number of Bitcoin tweets spiked dramatically during the 2017 bull market. We also so this trend in Google Searches. Nearly four years later, as we are entering what many predict will be another bull market, we can see the number of Tweets starting to ramp up again.
In comparison to Google Searches which are only about half that of the 2017 peak, it is interesting to note that the number of Tweets has already almost reached their 2017 peak. My guess is this is because there are more members of so called “Bitcoin Twitter” as well as many more other Twitter users participating in the discussion.
Though I do not recommend trading Bitcoin, some have attempted to use this data to time the market, buying and selling based on the amount of Twitter activity.