On 12th November 2017, there began a revolution in the world of economics. Bitcoin the cryptocurrency started surging in value and reached a maximum of $19212.96/bitcoin in a month. People who had invested without having any previous knowledge of it were reaping the benefits. Although an extremely volatile asset, people were still excited and investing in it. After three months now the cryptocurrency is still popular and also has new entrants like litecoin and ethereum. With daily transactions of bitcoin reaching more than 150,000, there is a need to use big data analysis for the enormous amount of data generated every day.
Although blockchain keeps the user’s identity anonymous, big data analysis can act as a vigilante by preventing hacking activities by identifying the factors for infiltration. Data analysts can use the blockchain information and pattern recognition to validate the legitimacy of the transactions and that of participants involved. Such analysis can help cryptocurrency achieve legality and greater adoption in the market. With the rise of the quantum computer and data based hacking, there rises a chance of theft of the cryptocurrencies. Using data analytics, one can identify potentials leaks and cases of theft, ensuring that transactions remain legal, safe, and secure.
Volatility always surrounds markets. Big data has helped to predict the trends of the stock market. It can also be helpful to predict trends of the cryptocurrencies. It is interesting to know that non-bitcoin events have impacted its prices the most. Major world events like that in Europe, change in people’s sentiments after the shutdown of Mt. Gox, one of the largest bitcoin exchange, in early 2014, all have affected the prices of bitcoin and other cryptocurrencies. Big data already has been a very profitable business with revenues expected to grow to $203 billion by 2020 and by 2030 the data contained in blockchain might be worth up to 20% of the global big data market and generate $100 billion in annual income.
Although in its early stage, experts think that blockchain and big data are a match made in heaven. In the future, big data will definitely help to demystify the volatile and mythical currency and facilitate its use in the world.