Bitcoin - Social Media Analysis

Group 1
Shashank Yadav - PGP32140 | Aditya Sapate - PGP31064 | Anand Shah - PGP32249
Sudhanshu Jaiswal - PGP32047 | Chinta Vydehi – PGP32041 | Arvind Kalyan – PGP32331
Objective

 Bitcoin is currently trading at around $15,000; at the beginning of 2017, it was at $1,000,
raising warnings from some analysts and prominent financial figures that it’s a bubble
 The currency is extraordinarily volatile despite its recent ever-peaking performance, rising
by thousands of dollars in value on one day only to fall by even more the next
 Pro crypto people say that it is a revolutionary technology that changes everything and
adds massive value to society, that it frees us from the excessive power of banks
 Anti crypto group, say it is a fraud, a lie, a bubble without reason, that it has no value, that
it is dangerous due to lack of regulation

The objective is to analyse the actual public sentiment towards bitcoins

 Bitcoin Basics

 Bitcoin is a digital and global money system (currency). It allows people to send or receive
money across the internet, even to someone they don't know or don't trust. Money can be
exchanged without being linked to a real identity. The mathematical field of cryptography is
the basis for Bitcoin's security
 Bitcoin was invented by Satoshi Nakamoto in 2009
 Underlying network-- Blockchain
How Bitcoin Works?
 Why Bitcoin price is so volatile and
high?
 Scarcity – Total cap of 21m BTC
 Utility – Makes transaction easier and more transparent using blockchain
 Price determined by the supply and demand in the indexes
 The total Bitcoin market is still relatively small when compared to other industries. This explains
volatility
Social Media Influence on Bitcoin

 Researches proved that social media contributed majorly to cryptocurrency prices

 On Facebook, 57% of changes in Bitcoin’s Fan base can be attributed to price changes
 51% of changes in the number of Bitcoin mentions on Twitter
Is it a Bubble?
Bitcoin Influencers on Social Media
 Network Visualization on Gephi

Key Observations:

• Even at 8000 nodes, the network was densily

clustered into 5 communities
• People are finding it difficult to comprehend
the technicality of bitcoin
• People are seeking information from the
influencers in the group
• Hence, most of the information is disseminated
by the influencers
Sentimental Analysis - Procedure

 Data Extraction
 Extracted text data with hashtags “#Bitcoin”, “#Bitcoinnews”, “#Bitcointrade”,”#BitcoinBubble”
 Data Cleaning
 "bitcoin","cryptocurrency","give","crypto","2018","iamjosephyoung","legendofcrypto","tcorvprsnhpp
d","crowdsal","ansellindn","now","daili","updat","retir","ceo","meet","screen","come","reddit","amp","w
eek","via“,"wave","send","south","pop","project","video","know","music","can","print“,"year","check","h
our","ton","cryptomerckkkk","crypticsup"
 Data Visualization
 Sentiment Analysis
 Customized the lexicon
Data Visualization

• Loaded wordcloud and ggplot2 libraries to visualize the sentiment of public

Before Cleaning After Cleaning
Sentimental Analysis – Score Matrix

Most of the scores for the tweets are positively skewed

Sentimental Analysis – Scores Histogram

Histogram is positively skewed again

Sentimental Analysis – VOS Viewer

Key Observations:

• Key words such as

“ICO”, “Earning”,
“investment”, “success”,
“good profit”, “worth”,
“legit” indicate that the
public is extremely
positive about bitcoin at
the moment

• Words such as
“scammer” indicate
that there are few
people who think this is
a bubble
Heat Map– VOS Viewer
Real Time Tracker (Tool used – keyhole.co)
Conclusion

 Public is positively skewed about bitcoins and their valuation

 Our Analysis on Gephi, VOSviewer and R indicate the same

 This is in line with the results of other publicly available SMA tools
Thank You!