Bitcoin and mass media
Bitcoin price factors
What Influences the Bitcoin Price?
One of the main goals of purchasing cryptocurrencies, including the most popular among them – Bitcoin, is the desire to keep and multiply one’s capital.
This is quite real assuming that you’re able to analyze and predict the changes of the cryptocurrency rates as well as to react on the changes
of the market situation in time and make an appropriate decision regarding the management of one’s virtual assets in order to increase the value of your portfolio.
The laws and the dynamics of the cryptocurrency market are very similar to the stock market.
The rate of Bitcoin just like of any other cryptocurrency or asset is determined first of all by the changing demand and offers on it.
When the demand increases, the Bitcoin rate grows too, and falls correspondingly when the trading volume falls in comparison with the usual level.
- Main article: Bitcoin in world economy
Influence of the mass media on the Bitcoin rate
- Main article: Bitcoin Investment
Besides the classical influence scheme, when large players purchase the cryptocurrency in significant volumes, thereby raising the rate and creating an illusion of a stable growth, which in its turn, leads to the increasing of the demand. Then, at the peak of the trades, they begin to dump their assets, so that the rate may go down to the minimum values. There is also another influence mechanism.
Like under the conditions of any other segment, in the area of the cryptocurrency investments, the general market regularities are quite applicable. So the growth of any currency rate depends both on its popularity and the agio around it, which, as we can already understand, may be easily created artificially. To date, due to the constantly increasing interest to the cryptocurrency market, almost all media aim to publish at least the “hottest news”.
The experts of the American institute of economic research and the University of Missouri have prepared a report on the results of the conducted research concerning the reasons of the Bitcoin rate changes. Their conclusions converged to the fact that nobody manipulates the rate of the first cryptocurrency like the mass media do. The experts were observing, how the rage was changing depending the news digest. They have concluded that the biggest leaps in the rates happen in the forefront of high-sounding headlines in the news articles. As a rule, these are news about significant events on the cryptocurrency market. Moreover, in these materials, the reason of such a volatility of the first cryptocurrency may not be essentially explained. The last year of 2017 became particularly indicative, which has already received the status of the “year of the cryptocurrency”. This was because during this period much more things were told and written about it, as ever before. As an indicator, the cryptocurrency capitalization increased 35 times. The biggest influence on the Bitcoin rate was provided by the news about the state regulation as well as closed exchanges and new technological updates.
- Main article: Cycle FOMO-FUD
For the majority of people, the cryptocurrencies and everything combined with it, despite the abundance of information, still remains an enigma. Many tempted people try to earn without figuring out the things completely, which allows easily manipulating the opinion of such characters using some or other informational bogus stories, which in its turn inevitably leads to financial losses instead of the expected profit.
We can divide several directions of the mass media that allow to stay aware about everything what is happening on the cryptocurrency market:
- popular scientific thematic sources (sources containing basic, theoretical and applied materials that do not have a news character)
- thematic news sources (note: including aggregators)
- popular channels of non-thematic sources
- view: Crypto Blog List
|fresh Bitcoin forum dedicated to crypto currencies.
|a Russian-language forum about crypto currencies.
|the largest community about blockchain, Bitcoin and crypto currencies.. It has been existed from the very beginning of the Bitcoin appearance, created by Satoshi Nakamoto in 2009.
|Bitcoin & Reddit
|collection of materials on Reddit.com
Bitcoin & Twitter
Bitcoin & Telegram
Telegram channels and chat.
|a chat community about Bitcoin and Bitcoin Core