If youve heard about the massive gains being enjoyed by bitcoin recently, then googled the digital currency to see what all the fuss is about, some of the cryptocurrencys investors may want to thank you. <\/p>\n
Bitcoin prices show a notably high correlation with Google search trends for the word bitcoin, according to Chris Burniske, a bitcoin expert who was previously a blockchain analyst at ARK Invest. <\/p>\n
In a series of tweets, Burniske speculated that an increasing price drives interest in bitcoin, and that interest further drives the price of $BTC, something he joked was a virtuous Satoshi cycle, in reference to Satoshi Nakamoto, the pseudonym used by the mysterious creator, or creators, of bitcoin. <\/p>\n
The price of a single bitcoin BTCUSD, +1.08% hit a record high of $4,483.55 on Wednesday, though it subsequently fell 4.2% to trade at $4,196.99. At current levels, it has more than quadrupled thus far this year, up more than 360%, a move that has lifted its total size to $68.7 billion, making it larger than Dow component Caterpillar Inc. CAT, -0.05% <\/p>\n
See a chart of the biggest digital currencies in the world <\/p>\n
Bitcoins rally has been among the strongest gains seen of any asset in 2017, although Etherbitcoins chief rival, which runs on the Ethereum networkhas soared more than 3,800%. <\/p>\n
According to Google trends, the search term bitcoin is reaching peak popularity in August 2017, while searches for ethereum have tapered off. (Bitcoin is in blue in the following chart.) <\/p>\n
The growth in bitcoin this year has come alongside growing interest in the overall cryptocurrencies, as well as increased regulatory interest and public debates over how it can manage at its current size. Recently, a new digital currencycalled Bitcoin Casherupted out of the original version to more rapidly process transactions in larger units, an issue related to bitcoin scability. <\/p>\n
The gains have been so large that major Wall Street banks have started to weigh in on the nascent sector. Both Wells Fargo and Goldman Sachs recently published primers on bitcoin for their clients, while one Morgan Stanley analyst called it a poster child for speculation. The investment bank had previously said that in order for bitcoin to rise furtherit had been trading around $2,750 at the timegovernment regulation would be necessary. <\/p>\n
See also: Bitcoin is up over 400% in the past yearwhats stopping it from going mainstream? <\/p>\n
Bitcoins evident connection to internet search interestwhen combined with its continuing move into the mainstreammay suggest that prices have nearly unlimited upside potential, something some proponents more or less agree with. John McAfee, the founder of his namesake antivirus software company, as well as a former fugitive and passionate cryptocurrency backer, recently tweeted that he would eat [his] d--k on national television if bitcoin didnt hit $500,000 within three years. <\/p>\n
Burniske disputed that general idea, noting that three peaks in Google search trends were accompanied by three of bitcoins six price bubbles. <\/p>\n
The virtuous Satoshi cycle can overheat though, as Google search activity divorces from its tight tango with bitcoins price, he tweeted earlier this week. <\/p>\n
Burniske defines bitcoin bubbles as the price doubling or more in a 30-day period. That is currently the case, as it was below $2,000 per bitcoin on July 16. After every bubble theres a crash, he tweeted, with some drops exceeding 90%. However, he added that those were *very* different bitcoin markets [emphasis in original] as they had thin liquidity, fragile exchanges, and a fraction of the users and investors, something he suggested could limit downside in the event of another sharp downtrend. <\/p>\n
Read this from June: Is bitcoin in a bubble? This metric suggests theres more room to grow <\/p>\n
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The rest is here:<\/p>\n
Bitcoin's rally seems closely tied to something you may do every day - MarketWatch<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" If youve heard about the massive gains being enjoyed by bitcoin recently, then googled the digital currency to see what all the fuss is about, some of the cryptocurrencys investors may want to thank you. Bitcoin prices show a notably high correlation with Google search trends for the word bitcoin, according to Chris Burniske, a bitcoin expert who was previously a blockchain analyst at ARK Invest Continue reading