Manipulation hurts crypto sentiment: Raj Chowdhury

The rise and fall of the most popular crypto in the world by mere ‘finger-pointing’ of an individual is harming the foremost innovation in fintech and the community around it.

A huge volume of data resides in unstructured text format, originating in tweets, articles posts, text messages, emails, etc. This vast collection of unstructured data leads to the creation of Natural Language Processing (NLP) as an area of study or development. NLP tools are used to analyze which side weighs greater: the one in favor of (a particular) crypto or one against it. The results are used to predict the course of the growth chart.

CEO Speaks

“Crypto holders, enthusiasts, or non-believers are each entitled to post their opinion on a public forum. If this causes a tilting of balance on either side, affecting the price of crypto, it is normal and a welcome event,” remarks Blockchain pioneer and PayBitoPro Chief Raj Chowdhury.

However, celebrity investors, notable entrepreneurs, and financial analysts also take to posting their opinions on the public platform. Fully aware of the strong influence their words may cast on the perception of the masses. Thus manipulating sentiments into tipping the balance through panic-selling or rush-buying.

Also Read: PayBitoPro devising innovative forex-cryptocurrency links

“Sentiment manipulation is an age-old tactic of maintaining control. If allowed to persist, the practice can cause grave harm to the crypto community,” says the author and investor.

Bitcoin Price Volatility

Recent swings in the price of Bitcoin have followed some exact events.

“Certain claims, often contradictory, made by eminent investors have slung Bitcoin to peak and also caused it to drop within a remarkably short interval. These claims are undoubtedly motive-driven and are imposing volatility on cryptocurrency trade that is ruinous to a spectacular innovation,” adds Chowdhury.

“The facade of unpredictability, as is apparent from the sharp rises and drops in Bitcoin’s graph, is adding to the overall negative perception of crypto trade within the community of investors and possibly driving them away from the prospect”, he furthers.

Stability: A Crucial Aspect to Choose Asset Class

Stability is, indeed, a critical aspect when it comes to choosing an asset class. Bitcoin and cryptocurrency as a whole are approaching a stable curve comparable to gold before the commentary-based trading caused the wide-angled deflections. This is evident from the steady rise in Bitcoin price till the end of 2020. The massive scaling and drops covered the first half of the current year.

Source:  Trading view

“An average investor would any day choose an investment class yielding stable returns over one with high returns. However, a history of drastic fluctuations,” he explains.

An uninfluenced path, if allowed, would render the crypto back to a more stable run.  

“The current scenario stands witness to the control of crypto trade passing into the hands of industry giants. This goes against the core virtue of decentralization that engendered the crypto,” concludes Chowdhury.

It is crucial for crypto to restore its track to steadiness. One can achieve this by allowing it to be an instrument in the hands of the common people. Rather than be among those who already wield enormous economic power. This should defeat the philosophy behind the stellar innovation of Decentralized Ledger Technology that fuels the digital currency.