Non-Financial Applications of Blockchains: Systematizing the Knowledge

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Original Research
09 October 2019
Wikipedia and Cryptocurrencies: Interplay Between Collective Attention and Market Performance
Abeer ElBahrawy
1 more and 
Andrea Baronchelli
Evolution of the network of cryptocurrency pages. Nodes represent Wikipedia pages and edge exist between two nodes if they have at least one common editor. The radius of a node is proportional to the sum of weights of incoming links and the edge thickness is proportional to the edge weight, measured as the number of common editors. The network is aggregated over a different period of times: (A) from July 2005 until July 2013, (B) from July 2005 until July 2015, (C) from 2005 until July 2017, (D) for the entire period of study.

The production and consumption of information on Bitcoin and other digital-, or crypto-, currencies have grown, along with their market capitalization. However, a systematic investigation of the relationship between online attention and market dynamics across multiple digital currencies is still lacking. Here, we quantify the interplay between the attention to digital currencies in Wikipedia and their market performance. We consider the entire edit history of currency-related pages and their views history from July 2015. First, we quantify the evolution of cryptocurrency presence in Wikipedia by analyzing the editorial activity and the network of co-edited pages. We found that a small community of tightly connected editors are responsible for most of the production of information about cryptocurrencies in Wikipedia. Then, we show that a simple trading strategy informed by Wikipedia views, performs better than baseline strategies, in terms of returns on investment, for most of the covered period, although the “buy and hold strategy” dominates during the periods of explosive market expansion. Our results contribute to the recent literature on the interplay between online information and investment markets, and we anticipate that it will be of interest for researchers as well as investors.

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Blockchain and Tokenomics for Sustainable Development, Volume II
Edited by Charalampos Alexopoulos, Claudio Schifanella, Enrico Ferro
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