Quite naturally, social media comments exert influence over cryptocurrency prices but according to a new study, the vocal minority of frequent posters do not have the most influential voices. You’ll find the details in today’s edition of Bitcoin in Brief. Also, a new coin will be airdropped to football fans and players at the World Cup and new Bitcoin ATMs have been installed in Russia and Africa.
Social Media’s Silent Majority Moves Crypto Markets
Public sentiment, expressed on social media, has the power to manipulate the value of bitcoin, a new study reveals. The recently published report by the Stevens Institute of Technology explores and verifies the effect of social networks on cryptocurrency prices, detecting a link there.
Researchers claim that periods of predominantly positive social media commentary significantly influence crypto markets and are actually pushing bitcoin up or down. However, according to their paper, it’s not the vocal minority, but the silent majority that really moves crypto prices.
The scientists came to this conclusion after dividing tweeters and posters in two groups and finding that social media comments from very active users do not change market graphs so much. On the other hand, infrequent posters who comment on the crypto prospects exert much more influence on prices, especially when they are sharing positive opinions. It turns out prices change proportionally to their sentiments. According to Professor Feng Mai, who lead the study:
Vocal users of social media may sometimes have a certain agenda, in this case hyping or boosting the price of Bitcoin because they themselves have invested in it. So, if most of the social messages around Bitcoin are generated by people who are biased, the sentiments on social media may not accurately reflect the currency’s actual value.
The authors of the study collected and analyzed two years of forum posts published on Bitcointalk. The research also covered more than 3.4 million tweets about bitcoin from a two month period. Using natural-language processing techniques, scientists classified the comments into positive, negative and other sentiment categories. Then they compared the compiled data with bitcoin price graphs.
The researchers also made the following observation – the value of bitcoin at a certain moment in time can also influence the sentiment expressed in social media chatter. To better understand and analyze the two-way correlation, the team also took into account the daily movements of stock and volatility indices and gold prices.
Football Craze Captivates the Crypto World
With the Round of 16 World Cup matches coming, football emotions are infecting the cryptosphere, and some businesses are rushing to ride the wave before it flattens next month. The Moscow-based blockchain startup Waves has created a new token dedicated to soccer fans, Mutcoin. The coins will be distributed to subscribers on the company’s Vkontakte page and Telegram channel.
The issuer promises to buy its tokens back through its decentralized cryptocurrency trading platform within 60 days after the Final on July 15, at prices that depend on how high the Russian “Sbornaya” climbs up in the championship ranking. 100,000 Mutcoins will be airdropped – half of the tokens will be allocated to ordinary users and the rest will be given to the players and coaches of the Russian national football team.
Bitcoin ATMs Installed in a Bar and a Business District
The number of cryptocurrency terminals offering automated teller services has been growing steadily around the world in the past few years. Two new machines have been recently installed in a Russian city and in an African capital.
A Bitcoin ATM is now available to the frequenters of a bar in Voronezh, Russia. It’s located on the Friedrich Engels Street, in the very heard of the city. Local crypto outlets reported that the terminal supports both purchases and sales of bitcoin (BTC). The two-way crypto-fiat transactions are an extra that not all devices around the world offer.
A teller machine selling bitcoins (BTC) and litecoins (LTC) for cash has been installed in the Westlands area of Nairobi, the capital city of Kenya. The BATM, which is pretty close to the central business district, allows users to buy cryptocurrency for as little as $5 and pay for it in US dollars or Kenyan shillings.
Luxury Hotel Units Sold for Bitcoin
New luxury hotel units at the Al Mahra Resort by Cristal can now be purchased with bitcoin or other cryptocurrency. The complex, located on the Al Marjan Island in the United Arab Emirates, features 548 rooms, suites and villas. Al Mahra Resort is owned by FAM Holding, a business conglomerate with diversified investments across the Arab country.
“Some of the biggest names worldwide are warming up to cryptocurrencies. Therefore, it is logical for us to offer people the opportunity to pay in bitcoin or similar currency, rather than just fiat,” said Faisal Ali Mousa Al Naqbi, owner and chairman of the holding. He also noted that cryptocurrency has radically improved the transparency, speed and security of property transactions.
What are your thoughts on today’s stories in Bitcoin in Brief? Let us know in the comments section below.
Images courtesy of Shutterstock.
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