Scam to Sexy: Alternative Research Explains Explosive Bitcoin Price Boom
Bitcoin has simply come of age and is being taken seriously. That’s the factor behind its price surge, research suggests.
By CCN: Bitcoin has surged up to 145.42 percent this year and more than 102-percent alone in the last 45 days, even if nobody exactly knows why.
Some said it was the institutional investors that pumped the cryptocurrency’s price. Some even rubbished the bitcoin price rally by calling it artificial. Meanwhile, one new research attempted to find what drove moneymakers (if there were any) to an asset whose valuation had dropped by 84-percent in 2018. The answer came out to be simple: the cryptocurrency started to matter and became the talk among academicians.
Indexica, a Los Angeles-based data analytics company, developed a natural language processing-based custom index that processed thousands of textual documents. The firm found that more academics and financial professionals are discussing bitcoin than earlier. It further noted that scholars are enhancing the quality of their discourse when they review the cryptocurrency in research papers, public conversations, and debates.
That, found Indexica, allowed researchers to effectively communicate more deeply about bitcoin with the rest of the world. The process further bridged the information gap that existed between the cryptocurrency market and institutional investors. As a result, the interest of moneymaking individuals, endowments, hedge funds, and family offices, towards bitcoin went up. Down the road, they started allocating a part of their financial portfolio to cryptocurrencies, while considering them seriously as an asset class.
Future Beats Past
Indexica performed text mining on the bitcoin-related textual documents to study whether they were written in past or future tense.