Bitcoin [BTC] bubble saved from an imminent burst; Dutch Central Bank Advisor
Google has made a killing on the internet playground and has infested the information society. The internet giant is being called by names like Google Guru, the overlord of the information society. It has found a way to be the best search engine available on the internet preferred by the popular masses. Google has established its monopoly in the virtual world showcasing almost 90% share of the search advertising business. Even the content posted on any website depends on the ‘Google trends’ statistics. According to a CNBC report, a research found that Google search was successfully able to manipulate the Bitcoin prices.
The looming Bitcoin bubble burst
A research by Joost van der Burgt, a policy advisor at the Dutch National Bank, revealed that Google search activity largely influenced Bitcoin markets. The research compared bitcoin price movements to Google searches for the cryptocurrency. “Every time Bitcoin was in the news, be it positive or negative, the price went up accordingly,” said van der Burgt during an interview with CNBC.
The Dutch policy advisor explained that Google searches for Bitcoin was directly proportional to the coin’s prices until the end of 2017. This phenomenon seems to have returned with the introduction of Bitcoin futures market. “My take on it is that because of the introduction of futures, that might have deflated the bubble before it got to a level where it might burst completely,” said van der Burgt. However, Bitcoin promises that the cryptocurrency is not in a bubble. Forbes magazine has reported that ‘the existence of a bubble does not evidence that Bitcoin will either fail or succeed.’
Burgt also compared prices of popular assets like gold to Google searches and found no correlation. He suggested that an investment that is widely acclaimed by the public will see its market value spike compared to a less known investment. “If the buzz is everywhere, it doesn’t matter exactly what the news is about… nobody wants to miss out and everybody’s trying to get a piece of it,” he said.
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