City Research Online

Wikipedia and Digital Currencies: Interplay Between Collective Attention and Market Performance

ElBahrawy, A., Alessandretti, L. and Baronchelli, A. ORCID: 0000-0002-0255-0829 (2019). Wikipedia and Digital Currencies: Interplay Between Collective Attention and Market Performance. Frontiers in Blockchain, doi: 10.3389/fbloc.2019.00012

Abstract

The production and consumption of information about Bitcoin and other digital-, or 'crypto'-, currencies have grown together with their market capitalisation. 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 towards digital currencies in Wikipedia and their market performance. We consider the entire edit history of currency-related pages, and their view history from July 2015. First, we quantify the evolution of the cryptocurrency presence in Wikipedia by analysing the editorial activity and the network of co-edited pages. We find that a small community of tightly connected editors is 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, in terms of returns on investment, than classic baseline strategies for most of the covered period. Our results contribute to the recent literature on the interplay between online information and investment markets, and we anticipate it will be of interest for researchers as well as investors.

Publication Type: Article
Additional Information: Copyright © 2019 ElBahrawy, Alessandretti and Baronchelli. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
Publisher Keywords: cryptocurrency, Wikipedia, Bitcoin, complex networks, investment strategy
Subjects: H Social Sciences > HG Finance
Q Science > QA Mathematics > QA75 Electronic computers. Computer science
Departments: School of Mathematics, Computer Science & Engineering > Mathematics
URI: https://openaccess.city.ac.uk/id/eprint/23321
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