There’s nothing that peaks the public’s interest more than a theatrical story about a shadowy clandestine legend. The recent Craig Wright drama has placed Bitcoin front and centre on the world stage.
Mainstream news outlets have been running buzz stories about Bitcoin for days, which may be attracting new people into the space. But the saga doesn’t end there, it’s likely that Craig Wright is a fraud and has been dragging this out with convoluted evidence and unfulfilled promises.
A PEAKED PUBLIC INTEREST
Google trends is showing a +200% increase on Bitcoin related searches over the past few days.
Search trends for “Bitcoin”.
Search trends for “Satoshi Nakamoto”.
Some of this Bitcoin sensationalism appears to be attracting new buyers into the market. Although not as high, the term “buying bitcoin” is also trending, particularly in the United Kingdom where the story first aired on BBC.
We can also see a spike for the term “Bitcoin halving”.
Bitcoin posts were trending on reddit as new people came in to see what all the hype was about.
POTENTIAL EFFECT ON THE MARKET
Bitcoin is a rare commodity that’s hard capped at 21 million. It’s current supply is around 15.5 million and it has an annual inflation rate of 9%. At the end of July the mining rewards are being cut in half, reducing the inflation to 4.5% annually, which is 1800 coins daily.
Mining is a one way relationship with the markets that adds selling pressure on the price. New buyers need to enter into the market in order for the price to rise. An increase in new users combined with a reduced inflation rate can have a bullish impact on bitcoin.
In the marketing world they say that all news is good news because it draws attention to your product or service. Although many people likely know about Bitcoin, it may take hearing about it several times before deciding to give it a try.
These sensational news stories act as just another reminder for anyone sitting on the fence about purchasing some coins. Once Bitcoin reaches the consumer adoption phase in its growth cycle, owning a full bitcoin will be scarce.