What are Effective Bitcoin Monitoring Tools?

[jasperdejong]

"What are effective bitcoin monitoring tools/techniques?"
A question every wise Bitcoin investor will ask himself every now and then. I would like to share my perspective on this topic. So you might gain insights and invest smarter today, either from me or from the replies shown below.

I believe within the crypto world three 'coin characteristics' matter the most:
1. Social drive
2. Competition
3. Momentum and rate

Why did I list these in a numeric order?
Because they all relate to each other, one characteristic is the cause of the next one. Let me demonstrate what I mean:

• A group of people just created a coin(in simple terms), and they start using social media to share this coin.
• Early birds fly in and start investing, but more importantly they share this coin as well, strengthening the social drive.
• But guess what, there are another 400 similar coins on the market. Only the coins with more loyal investors that create effective social drive will stand out, and will rise above competition. In other words competition feeds on the quality of the social drive.
• Result: coin gains more momentum and rate in the price graphs that we all look at (possibly) every day.[/i]
  

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So how do these 'coin characteristics' translate into monitoring tools/techniques ?
Most of us properly know about monitoring coin 'momentum and rate' by applying techniques on the market price graphs such as:moving averages, your guts, MACD, RSI etc. Thinking that these graphs can tell us everything we need to know, while in reality they tell us nothing but past performance. Have you ever monitored how well a coin is performing comparing to its competition, or have you ever analysed the social drive caused by twitter, Facebook, trollboxes etc ? If you have, show me the ropes ! Else, doesn't that mean we are missing out on 66% when it comes to bitcoin monitoring and effectively investing?

Sounds like much.... profit, where do we start?
Satoshi's pool party. Actually, I haven't seen any tool or service that is trying to monitor: social drive or competition. At least not the right way, leaving us with one option: designing and developing new monitoring tool/techniques. Actually, I've already started but I could use some feedback on this matter.

[cryptworld]

what you purpose is really interesting but really difficult to monitor?
do you know any tool to show us?

[jasperdejong]

what you purpose is really interesting but really difficult to monitor?
do you know any tool to show us?

You're properly right, mainly because it has never been done before. And that's why I want to be the first that has developed such tool, which will be free to use.

I do have a prototype running at the moment, but I don't feel comfortable sharing this publicly. But yes there are similar tools when it comes to monitoring social activity, and I believe these are useless at the moment. Why? Because most social activity of bitcoin investors are spread among: bitcointalk, troll boxes, exchange chats, IRC and twitter. No tool delivers that kind of monitoring service.

[onlyu]

Only the price is an important factor. The characteristics you listed is just smaller components which price derived from.

[jasperdejong]

Only the price is an important factor. The characteristics you listed is just smaller components which price derived from.

It's interesting you say that.

In my eyes price is the ultimate outcome of all these and other coin characteristics. And in my believe monitoring and analyzing effectively comes with understanding why the price is the way it is. I can't see how you can possible understand why a coin (like doge) is growing so hard by only looking at the price, and it's route.

[johny08]

Only the price is an important factor. The characteristics you listed is just smaller components which price derived from.

It's interesting you say that.

In my eyes price is the ultimate outcome of all these and other coin characteristics. And in my believe monitoring and analyzing effectively comes with understanding why the price is the way it is. I can't see how you can possible understand why a coin (like doge) is growing so hard by only looking at the price, and it's route.

I just know that, Golden Sachs are having a huge software with Big Data analysis, worth of millions, with alot different parameters for analysing different currencies. With watching the price you cant do anything, because you need at least two parameters you compare to each other, to say if it goes up, down or staying the same.

[xkeyscore89]

Only the price is an important factor. The characteristics you listed is just smaller components which price derived from.

It's interesting you say that.

In my eyes price is the ultimate outcome of all these and other coin characteristics. And in my believe monitoring and analyzing effectively comes with understanding why the price is the way it is. I can't see how you can possible understand why a coin (like doge) is growing so hard by only looking at the price, and it's route.

What really needs to be monitored about bitcoin is the news. Especially news that appears in the MSM as this tends to have the greatest impact on overall price, use and adoption of bitcoin.

[jasperdejong]

What really needs to be monitored about bitcoin is the news. Especially news that appears in the MSM as this tends to have the greatest impact on overall price, use and adoption of bitcoin.

I couldn't agree more with you. But there is no way (without self learning neural network) software can analyze an article on content to measure impact. However it would be possible to list all trending news articles, based on social media attention velocity. Which would be a great idea indeed, since nothing like this exists yet.

I'm not familiar with MSM, and neither is google somehow. Can you tell me more about it?

[zedicus]

What really needs to be monitored about bitcoin is the news. Especially news that appears in the MSM as this tends to have the greatest impact on overall price, use and adoption of bitcoin.

I couldn't agree more with you. But there is no way (without self learning neural network) software can analyze an article on content to measure impact. However it would be possible to list all trending news articles, based on social media attention velocity. Which would be a great idea indeed, since nothing like this exists yet.

I'm not familiar with MSM, and neither is google somehow. Can you tell me more about it?

The MSM is the Mainstream Media. It is comprised of news outlets like CNN, NBC, Fox news, The Washington post, the wall street journal and the like. It is media outlets that are very heavily read and respected. They are generally responsible in confirming most of the facts that they report prior to publishing their stories.

[thefunkybits]

Be on the lookout for CDEX...

Coin Source is in the final phases of releasing a Trust Index similar to DOW or NASDAQ for altcoins

www.coinssource.com