Cryptocurrency Dominates the Fintech Conversation

Analyzing the conversation about digital currencies on social media

The financial services industry has undergone a sea of technological changes in the last decade. Mobile banking and faster payments have made bank queues a thing of the past; most wallets are digital and bank transactions are virtual. And thanks to user-friendly, innovative apps, the famously frustrating banking systems have gotten easier to deal with.

From serpentine teller lines to digital currencies, the financial services industry has been upended by technology. And in many ways, social media has been a great catalyst for propagating ideas like Bitcoin and blockchain.

“A lot of Bitcoin’s value derives from how we envision it within the depths of the internet The advent of social media has pushed this value further. — as this quote suggests, it’s not preposterous to credit the rise of many newfangled financial concepts to the social internet.

In this post, we analyze the cryptocurrency conversation online as well as other fintech trends by looking at:

  • Crypto conversation
  • The rise of Bitcoin
  • Talking blockchain

Let’s Talk Crypto

Grouped as fintech, the avant-garde ensemble of financial ideas such as digital currency, robo advisors, and mobile tellers, has forever changed our exchange with money. Financial technology is lauded for overhauling the archaic banking systems but at the same time vilified for taking away jobs. Hot or cold, the internet audience never tires from talking about it.

The fintech discussion on social has grown astronomically over the past seven years and is still growing. Going from 3k posts in 2010 to 174k posts in 2017, much of the growth has taken place since 2015. The category includes many subtopics under its umbrella, like big data, Bitcoin, blockchain, and digital banking.

But is the talk all alike? What topics garner more attention on social? Is the audience interested in some topics more than others? The short answer is yes. The long answer lies in the data.

A bulk of the fintech conversation revolves around cryptocurrencies and Bitcoin — cryptocurrency had the highest share of voice, accounting for almost 80% of the entire conversation.

The Rise of Bitcoin

The first ever bitcoin transaction happened in 2010 for the sale of two pizzas on an online forum. Bitcoin has had a long and tumultuous journey since then.

The Bitcoin conversation on social has followed the spikes in news about the cryptocurrency. As more people grew curious, the conversation began to heat up. From negligible volumes in 2010 through 2012, it picked up some steam in 2013. However, 2017 has been the most eventful for the currency which started at the year under $1,000, and skyrocketed by more than 1,300% to more than $14,500 by December 29.

 

The bulk of the Bitcoin conversation was about the currency’s price. While the Bitcoin market is open 24/7, our analysis of the conversation showed that it follows some similar patterns to the stock market. People choose to trade at the most opportune times in hopes of maximizing their profit. The “high risk, high reward” principle from stock trading is also applied to Bitcoin.

Bitcoin dominated the cryptocurrency conversation over other players like Ethereum, Litecoin and Ripple. The bulk of the Bitcoin conversation was about the currency’s price, its performance, and the best times to buy and/or sell Bitcoin. Indeed, the social conversation volume for Bitcoin very closely matches the dips and rises of Bitcoin prices.

Block the chain

The Bitcoin frenzy on the internet set a precedent for many ancillary or supplementary phenomenons — blockchain being one of them. Blockchain is a decentralized, digital public ledger that records Bitcoin transactions.

On social, blockchain has come to gain some popularity — The discussion has grown to over 60% since it was first discussed, in 2010. What are people interested in knowing?

Primarily, the concept of blockchain and its applications, wallets, and Ethereum blockchain. On social people also discussed different use cases of the technology in different fields.

 

Conclusion

Cryptocurrencies have dominated the fintech discussion in the last few years. From demystifying Bitcoin as a concept to probing different use cases, social media has been at the helm of the cryptocurrency evangelism. Whether it’s Bitcoin, Litecoin or Ethereum, the social audience is piqued with curiosity to know more and talk more. And unsurprisingly they flock to social media and online forums to do so. The real question is whether these conversations are being heard and turned into consumer insights.

To download the full report on consumer insights for financial services industry, click here.

Request a Demo

Ready to transform your business?

Get a walkthrough of Crimson Hexagon and learn how consumer insights can help you make better business decisions.