The digital traces of bubbles: feedback cycles between socio-economic signals in the Bitcoin economy

@article{Garca2014TheDT,
  title={The digital traces of bubbles: feedback cycles between socio-economic signals in the Bitcoin economy},
  author={David Garc{\'i}a and C. Tessone and P. Mavrodiev and N. Perony},
  journal={Journal of The Royal Society Interface},
  year={2014},
  volume={11}
}
What is the role of social interactions in the creation of price bubbles? Answering this question requires obtaining collective behavioural traces generated by the activity of a large number of actors. Digital currencies offer a unique possibility to measure socio-economic signals from such digital traces. Here, we focus on Bitcoin, the most popular cryptocurrency. Bitcoin has experienced periods of rapid increase in exchange rates (price) followed by sharp decline; we hypothesize that these… Expand

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