Cryptocurrency and Big Data Analytics: What it Means for the Crypto World
Bitcoin, the first-ever cryptocurrency took birth in March 2010. This exchange was then introduced in bitcoinmarket.com.
Despite the term ‘Bitcoin’ being introduced in 2009 under the pseudonym Satoshi Nakamoto, it was a year when a new era of decentralized digital currency and blockchain technology was also introduced.
As the currency started to gain momentum in the financial market, more investors are looking to invest in these digital currencies. But then their major concern was “security.” This is where blockchain along with data plays a significant role. As exchanges share multiple transactions, more data is being generated. But with the help of blockchain and big data techniques, such transactions can be easily secured.
As fintech industries emerge to rise, so will the techniques big data professionals use for prediction rise. With the crypto market looking to expand, big data techniques will now be used to gain insights related to the cryptocurrency market.
Let us further delve deeper and discuss how cryptocurrency is benefitting from big data analytics:
- Help investors perform tasks efficiently
Most investors often fail to make the right decisions when it comes to the crypto market. Their major focus lies in analyzing the value of multiple digital coins and check the value of buying them while making huge profits out of them.
If you’ve followed the crypto market, you’d realize the market undergoes frequent fluctuations. For instance, during mid-March Bitcoin was priced at USD 4,916.78 and if you happen to check the current price it is around USD 19,000. Do you see the difference?
Well, unlike any other industry, the crypto market has gained quite a fast momentum amid the pandemic crisis. While most businesses fell short of profits, the crypto market was merely affected. However, it is challenging to keep proper track of market fluctuations. This is where investors tend to fall back. Although they wish to stay ahead of the trend they’re unable to do so. Well, with the help of big data analytics and techniques, any investor can now uncover trends before the big dips and jump happen in the crypto market.
The trending analysis helps investors determine what the market is planning to do next. Also, based on historical data, it can help predict the future. Using data techniques investors can now use these variables and create them into models to predict the value of any cryptocurrency.
Investors can extensively use big data in every form they wish to in the crypto market. As cryptocurrency gains awareness in the market, there are higher chances for investors to gain maximum benefit using big data techniques.
- Secure blockchain for investors
When we talk about digital currency, our most concerns involve blockchain security. For anybody dealing with cryptocurrency, all they’re worried about is whether their currency is secured. Cryptocurrencies are now used by multiple consumers to purchase services and products. Therefore, it is important to have robust security, else it can be difficult for consumers and businesses to invest in digital currencies like Bitcoin, Ethereum, and Litecoin.
The presence of big data is changing every perception regarding security. With blockchain becoming more secured, it is making it much feasible for consumers to invest in digital currencies. As blockchain adds one more layer to the big data analytics process, it makes it difficult for someone to forge due to the robust network architecture. Thanks to blockchain-generated big data security.
Providing security to the blockchain using big data opens new opportunities for startups. As blockchain gains traction by providing proper security, it can easily help consumers to gain maximum businesses by investing in cryptocurrencies.
- Big data detects odd patterns
One of the biggest advantages of big data and cryptocurrency lies in the criminal space. This is one major reason why most banks and credit card companies hesitate to do business when it comes to dealing with cryptocurrency and its security.
Every credit card company or bank wants to know from where the cryptocurrency is coming from, to whom it is being transferred, and whether a proper transaction is taking place between them. Now using big data techniques, you can track transactions taking place over time then start looking for patterns. Such patterns can help identify whether the activity taking place is fraudulent.
When talking about cryptocurrency, everybody’s major concern is security. Bigger transactions taking place are some of the indications wherein you can check for illegal operations. However, it is not always necessary that the heavy usage of transactions will always lead to illegal operations, but investors need to be more careful.
As cryptocurrency tends to accelerate making business, more hackers will try using illegal means to interfere via malware or other means. Now you know why the big data industry and the big data techniques used to find patterns are highly beneficial for blockchain and the crypto market.
Although the notion of cryptocurrency is still new to many countries across the world, it is slowly gaining acceptance. However, investors need to ensure they’re not being fooled by any fraudster. And to do this you need to start using big data techniques to analyze and detect any unwanted activity before it takes place.