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Predicting Fluctuations in Cryptocurrency Transactions Based on User Comments and Replies

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  • Young Bin Kim
  • Jun Gi Kim
  • Wook Kim
  • Jae Ho Im
  • Tae Hyeong Kim
  • Shin Jin Kang
  • Chang Hun Kim

Abstract

This paper proposes a method to predict fluctuations in the prices of cryptocurrencies, which are increasingly used for online transactions worldwide. Little research has been conducted on predicting fluctuations in the price and number of transactions of a variety of cryptocurrencies. Moreover, the few methods proposed to predict fluctuation in currency prices are inefficient because they fail to take into account the differences in attributes between real currencies and cryptocurrencies. This paper analyzes user comments in online cryptocurrency communities to predict fluctuations in the prices of cryptocurrencies and the number of transactions. By focusing on three cryptocurrencies, each with a large market size and user base, this paper attempts to predict such fluctuations by using a simple and efficient method.

Suggested Citation

  • Young Bin Kim & Jun Gi Kim & Wook Kim & Jae Ho Im & Tae Hyeong Kim & Shin Jin Kang & Chang Hun Kim, 2016. "Predicting Fluctuations in Cryptocurrency Transactions Based on User Comments and Replies," PLOS ONE, Public Library of Science, vol. 11(8), pages 1-17, August.
    • Handle: RePEc:plo:pone00:0161197
    DOI: 10.1371/journal.pone.0161197
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    References listed on IDEAS

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