Being an admin and co-owner of the whatsoncrypto community has allowed me some views and insights to the Crypto Market I would like to share with our crypto community.
If you pay attention to the news stories that are posted you can gain an unique insight to the shifts in the crypto markets. Take the Bitcoin mining market last year. At this time last year there was a few articles referencing the higher cost of mining equipment. Not really something you would notice unless you were interested in mining. A few weeks go by the Bitcoin price starts to go up in big percentage chunks. Than something interesting started happening. I started seeing more of the news articles about the mining equipment price increases. Than I started seeing articles about mining companies having a waiting list for mining equipment. Following that cloud mining services were booming as the Bitcoin price went up too. By December the Bitcoin price hit 20k. mining equipment was being sold faster than it can be built. More and more articles came out about companies building huge mining farms. So what happened? How did these news articles frequency and tone affect the real world?
Well the smart or observant people would of realized that Bitcoin Mining was becoming overcrowded and that the payouts would drop by 90% due to increase difficulty, and Bitcoin price drops over a matter of months. It was time to not invest in mining anymore and it is still overcrowded till this day.
Last year in March I started to see news articles about the uses of Bitcoin increasing. More and more stores and companies were starting to accept it as a payment method. I started seeing more stories about Bitcoin adoption and investment opportunities. Countries were working to allow Bitcoin to be a legal payment method. I personally consider stories and articles about these things as a positive for the crypto world. Thus I call them a positive story. The articles about Bitcoin theft, scams, countries banning Bitcoin were a negative thing for the crypto world. So I call them negative story. Once I realized this, it was easy to create a measurement of how many positive stories were published compared to how many negative stories got published. I knew this was an investment opportunity when I could see twice as many positive articles than negative stories everyday. I could see the picture so clearly I was willing to take out loans just to invest. And I was right. Bitcoin did nothing but go up by the end of the year. Oh happy days they were.
Starting January the trend reversed there was more negative every day than positive stories. Bitcoin and the other cryptos started free-falling. I could not see the overall market picture any longer and would not had invested anything more into the market.
Fast Forward to today.
Like I said being involved as an admin on the whatsoncrypto telegram channel and on our website, has allowed me to keep track of positive and negative news articles published. What I have noticed since early May is that the positive stories are starting to outweigh the negative ones again. I am seeing the picture clearly and feel safe in investing back into bitcoin and the other currencies once again. I feel safe in investing 10% of my pay into the crypto world.
Of course with crypto that does not mean that some country might ban Bitcoin overnight or there might be some kind of hack that dumps the Bitcoin price again. You never can tell in the crypto world what might upset the apple-cart. So be careful and do your own homework.
But for me, using my score of positive vs negative news articles, I have a tangible measurement for the public trend on Bitcoin and other cryptos and will invest accordingly. Only time will tell if it is a good move.