How to Use Big Data to Understand Cryptocurrency?

October 8, 2019

Big data has become one of the most valued and used tools by businesses. With the capacity to comprehend large data sets, trends can be unearthed that would have gone unnoticed. These trends are then influential to business processes and decisions, ultimately ending in more sales and increased profit. Cryptocurrency is on the same pedestal in current times, so it was only a matter of time before these two got around a dinner table and became acquainted.

Big data is helping crypto improve its security, predict trends – and these feed into more appealing crypto startups. Learn the details below.


Preventing Hacks and Improving Security

One of the hurdles that prevents people from joining the crypto movement is security. People are entitled to be fearful of crypto when it is largely unregulated. However, owning a Luno Bitcoin wallet and frequenting the top exchanges is being made safer thanks to big data.

Big data is not just about spotting trends to increase engagement or spot trends for more profit. It can also be used in the fight against cybercrime. Analysing large quantities of data may allow specialists to identify trends in hacking and predict future breaches of security. This info could be used by exchanges and wallet providers to keep all users and their crypto safe.


Helping Spot Volatility

Bitcoin has a renowned reputation for being a volatile coin. One day hitting the highs of December 2017 and the next year sinking significantly – and then revving up again. This is a natural occurrence in all cryptos, but investors would certainly sleep easier if they could somehow predict markets and their cryptos’ predicted value.

Although big data would be limited in doing this, it could also offer some insights when crypto values have soared and dipped when combined with other data from politics and society. A bigger picture may be exactly what is needed to know more about crypto volatility.


Boosting Blockchain and Crypto Startups

The two previous benefits of big data and crypto joining forces, namely more security and spotting volatility, will help make crypto become a more appealing investment. For startups who are jostling for position and also seeking investment against other startups, the adoption of crypto can make investors feel easier if they know big data is providing the two aforementioned benefits. Investors look for safer investments and ones that can have solid predictions. Now crypto startups or startups basing their services on the blockchain can now tick these boxes thanks to big data.


The Perfect Match?

The uses of big data in the world of crypto are valuable for everyone, from everyday holders to the companies that run crypto products. They seem to fit perfectly to provide real solutions or higher security. In the end, by these two working together, we can understand crypto better and help promote it to all.