Media Influence On Cryptocurrency

Media Influence On Cryptocurrency

Cryptocurrency
Nov 2, 2019 by Ayush Shaurya
237
Various studies have shown that the media is the most important source of influence on the price of Bitcoin and other cryptocurrencies. Greater media coverage leads to a better understanding of cryptocurrencies and Bitcoin by the general public. This can potentially attract new people to cryptocurrencies. Effect Caused By Certain News Positive media coverage of
Effects Caused By Certain News

Various studies have shown that the media is the most important source of influence on the price of Bitcoin and other cryptocurrencies. Greater media coverage leads to a better understanding of cryptocurrencies and Bitcoin by the general public. This can potentially attract new people to cryptocurrencies.

Effect Caused By Certain News

Positive media coverage of Bitcoin will generally lead to higher prices, while negative price coverage will have the opposite effect on cryptocurrency prices.

Positive media coverage of Bitcoin will generally lead to higher prices, while negative price coverage will have the opposite effect on cryptocurrency prices.

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Let’s take the simple example of a large company that is well known in the world of traditional finance and that would declare a very strong interest in the Ripple system and would like to test it in real conditions in the near future.

This simple declaration of intent will cause a sharp increase in the price of its token, the XRP. Indeed, by reading this statement, many investors will consider that Ripple is legitimized since a major player proclaims its intention to support it. This will encourage them to invest in his token.

It is therefore necessary to keep abreast of the latest news on Bitcoin and cryptocurrencies in order not to miss future bullish or bearish waves.

Improvisations Of The Bitcoin Community

Improvisation of The Bitcoin Community

Another factor of instability linked to Bitcoin comes from its governance by a community that is struggling to find consensus to ensure its future in the middle and long term. In addition, decisions made by the community affect the Bitcoin Blockchain and therefore the entire ecosystem as a whole.

When a consensus cannot be reached, as was the case with the increase in block size in 2017, a hard fork can occur leading to a separation into 2 separate blocks according to different rules. This is how Bitcoin Cash was born in August 2017.

These periods of instability within the community over the rules of Bitcoin and its future have often had a negative effect on Bitcoin prices. Nevertheless, once the fork was passed, we could see that the trend was towards an upward recovery. So this is possibly an opportunity to take advantage of it to invest at when Bitcoin price is low and then make good profits.

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