Indeed, the longer something has been around, the more chances there are that it will survive longer, and among memes, competition for survival is fierce. This theory states that the future life expectancy of certain non-perishable goods-such as a technology or an idea-is proportional to their current age. However, according to a big data study ( Tandon et al., 2021), it can clearly be stated that Elon Musk cannot control the utter volatile world of cryptocurrencies and especially Bitcoin and Dogecoin.īut the price of cryptocurrency could be more driven by the Lindy effect than anything else. He seemed to have a huge impact on the cryptocurrency market as value seems to increase or decrease as he tweets, which could constitute an insider delay. One of the most relevant examples when talking about online advertising of a coin might be Elon Musk’s tweets. Indeed, most coins have a strong community promoting them through social networks. This huge rise in cryptocurrency market capitalization seems, at first glance, deeply linked to the cryptocurrency community. Since Satoshi Nakamoto’s whitepaper in 2008, cryptocurrencies have grown to a huge market capitalization-currently over $2T (as of December 2021). ![]() The authors cannot be liable if any financial investment is made based on its conclusions. However, in itself, this study is only for academic discussion, and conclusions need to be drawn by further research. Therefore, those are just the beginning of scientific findings that may lead to building a trading robot based on these results. The forecasting error resulting from our ARIMA (0,0,0) models was 0.08% (with Litecoin) and 0.22% (with Dogecoin). Tweet number is impacted by Dogecoin whale behavior, but no significant relationship was found between Litecoin whales and tweets. ![]() In addition, we have computed different models (ADF, ARIMA, and Interpretable MultiVvariable Long Short-Term Memory recurrent neural network) that forecast past price values and assessed their precision.įindings and conclusions: While the average Dogecoin transaction value is impacted by tweets, tweets are impacted by Litecoin transactions number and average Litecoin transaction value. Method: Our study has retrospectively studied (from to )-using open access data-the association strength (using normalized mutual information) and the linear correlation (using Pearson’s correlation) between Twitter activity and cryptocurrency economical attributes. Furthermore, various methodological possibilities exist to forecast cryptocurrency price-mainly coming from online communities. To our knowledge, no study has independently assessed the crypto community’s economical impact on these cryptocurrencies. While Dogecoin is seen as a memecoin, the other gathers a very different category of investors. ![]()
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