- February 2, 2019
- Posted by: Dollar Destruction
- Category: Cryptocurrency News
The cryptocurrency industry reached its peak market capitalisation in January 2018, nearly reaching $800 billion. However, even with such a large market capitalisation the industry faces a lack of trust.
BlockchainDefender recently released a report examining this lack of trust.
Questions Answered in the Report
Within the report, BlockchainDefender clearly outlines its goals. The first question to answer lines up with the title of the report and asks how market sentiment affects the market capitalisation of a cryptocurrency. The report also aims to determine which digital currencies have the best and worst online reputations, spot variations in digital currencies’ reputations by countries, and see where the online negativity most frequently gets published. The second section of the report compares the online reputation of traditional trading exchanges with crypto exchanges, and the final section explores the impact of a crisis on a cryptocurrency’s price.
Market Sentiment, Trends, and Capitalisation: Study One
The first study of the BlockchainDefender report begins by confirming that the number of searches for cryptocurrency and the online sentiment regarding digital currencies correlate with the global market capitalisation of the crypto market. This is confirmed via ups and downs in all values from January 2017 to July 2018, all clearly displayed on an easy-to-read graph.
In a specific analysis of Bitcoin’s online reputation, BlockDefender found that the United Arab Emirates had the most positive search results of the previously mentioned four countries. The United States has the most negative search results. In an overall global analysis of online sentiment towards dozens of digital currencies, BlockchainDefender reports that Iconomi performed the best and Bitcoin Cash performed the worst.
Comparisons with Traditional Exchanges: Study Two
The second study focuses on a comparison of traditional exchanges with cryptocurrency exchanges and discovers that the former has much more control over its online sentiment than the latter. BlockchainDefender outlines that a significant factor is the level of content ownership since traditional exchanges own 34.38% of content while crypto exchanges only own 17.75%.
Impact of a Crisis: Study Three
The final study looks at data for a cryptocurrency that experienced a hacking crisis in 2018, both before and after the crisis. In the West and overall, the crypto experienced a significant drop in positive content and an increase in negative content.
Here at Dollar Destruction, we endeavor to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!
Don’t forget to join our Telegram channel for Crypto, Business & Technology news delivered to you daily.