People say Cryptocurrency (bitcoin) is the money of the internet and I think the internet can tell us a thing or two about this currency as they are so intertwined. As an internet marketer, I use search engine optimization (SEO) to understand industries and niches in order to create an identity of my potential consumer who will search in Google to find a particular product or service. In this article, we will examine the correlation between the search engines and the bitcoin price, payment options (exchanges) and the cryptocurrency industry as a whole.
First, let’s get you caught up if you are not familiar with some of the terms I used in my introduction.
What is Cryptocurrency?
Cryptocurrency is decentralized digital money, based on blockchain technology. You can use crypto to buy regular goods and services, although many people invest in cryptocurrencies as they would in other assets, like stocks or precious metals.
What is bitcoin?
Bitcoin is a type of cryptocurrency. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to.
What is a bitcoin exchange?
A bitcoin exchange is a digital marketplace where traders can buy and sell bitcoins using different fiat currencies or altcoins.
What is SEO?
SEO stands for “search engine optimization.” In simple terms, it means the process of improving your site to increase its visibility for relevant searches.
Now that we got that out of the way, let’s look at the price of the most popular cryptocurrency Bitcoin.
Above is a screen capture of the current Bitcoin price taken from Yahoo finance. This graph indicates that the current price for a single bitcoin is $53,748 USD. As we can see from the chart there are significant gains over the past year, Bitcoin in April 2020 was $7,679 USD. Let’s just say whomever bought in at the start of the year is satisfied with their investment.
Now let’s look at the search trends for the term ‘bitcoin’ in Google.
The screen capture above shows the popularity of the search term “bitcoin” in Google Trends. Google Trends is a search trends feature that shows how frequently a given search term is entered into Google’s search engine relative to the site’s total search volume over a given period of time. If we compare the Google trends graph to the price graph there is a significant correlation between the price and the popularity of the search term in Google.
Now, let’s look at the related terms to bitcoin that people are searching for.
Above is a screen capture using SEO software Ahrefs which shows the search volume for Bitcoin related terms and questions people are searching into Google in the US. We have highlighted the significant questions which will impact the price of bitcoin as there is a finite amount of the currency so the more people buy the more scarce the commodity becomes and the price will increase. There are 74k people in the United states who search “how to buy bitcoin” into Google a month and 18k search “how to invest in bitcoin” and these terms are growing in volume along with the price of bitcoin. This shows that the price of bitcoin will continue to rise as more new people enter the marketplace buying up the finite currency.
How are people buying Bitcoin?
Let’s answer the popular question searched into Google.
Above is a screen capture of the search results for how to buy bitcoin. As we can see an article from investopedia is at the top of the search results. The article details different ways a person can purchase bitcoin on the internet and locally, for example: a bitcoin ATM or a cryptocurrency exchange. Investopedia goes on to list the most popular exchanges where people buy bitcoin they are Coinbase, Kraken and Gemini.
Let’s look at the search trends for the top Bitcoin exchanges.
I went ahead and punched each of the exchanges listed in the investopedia article into Google trends and it provided some interesting results as seen in the screen capture above. It shows coinbase is the most popular exchange with Kraken coming in second. Looking at coinbase, we can see that it follows the same pattern as the bitcoin price and search term trends in Google. Furthermore, it appears to spike when the price goes down as people are eagerly buying the dip. Another interesting finding is the spike in the chart when Coinbase announced their initial public IPO on April 14th allowing people to purchase shares of the company on the New York stock exchange.
What does this tell us about the CryptoCurrency industry?
This article is a very high level look at the correlation between the bitcoin price and search trends but I think we’ve definitely illustrated there is a significant correlation. Now what does this tell us about the industry as a whole? I believe it says that as long as there is internet there will be cryptocurrencies and they will continue to evolve as the internet matures leaving fiat currencies behind. The trends tell us that the more people that are purchasing bitcoin and as it becomes a household commodity which will soon evolve to be a more transactional currency. By transactional currency I mean there will be new layers placed onto blockchain which will give users the ability to purchase services and goods on the internet instantly without the need for the banking system or fiat currencies at all. The more the price varies the more consumers will buy the dip causing the price to continue to grow until all of the finite amount of bitcoin is purchased leading it to become the most valuable commodity in the world. So, I’d suggest buying the next dip or you may be searching “why did I not buy bitcoin sooner!