{ "cells": [ { "cell_type": "markdown", "metadata": {}, "source": [ "# Exploring the Bitcoin Cryptocurrency Market\n", "> To better understand the growth and impact of Bitcoin and other cryptocurrencies you will, in this project, explore the market capitalization of different cryptocurrencies. This is the Result of Project \"Exploring the Bitcoin Cryptocurrency Market\", via datacamp.\n", "\n", "- toc: true \n", "- badges: true\n", "- comments: true\n", "- author: Chanseok Kang\n", "- categories: [Python, Datacamp, Data_Science, Visualization]\n", "- image: images/top10_cryptocurrency.png" ] }, { "cell_type": "markdown", "metadata": { "dc": { "key": "4" }, "deletable": false, "editable": false, "run_control": { "frozen": true }, "tags": [ "context" ] }, "source": [ "## 1. Bitcoin and Cryptocurrencies: Full dataset, filtering, and reproducibility\n", "
Since the launch of Bitcoin in 2008, hundreds of similar projects based on the blockchain technology have emerged. We call these cryptocurrencies (also coins or cryptos in the Internet slang). Some are extremely valuable nowadays, and others may have the potential to become extremely valuable in the future1. In fact, on the 6th of December of 2017, Bitcoin has a market capitalization above $200 billion.
\n", "*1 WARNING: The cryptocurrency market is exceptionally volatile2 and any money you put in might disappear into thin air. Cryptocurrencies mentioned here might be scams similar to Ponzi Schemes or have many other issues (overvaluation, technical, etc.). Please do not mistake this for investment advice. *
\n", "2 Update on March 2020: Well, it turned out to be volatile indeed :D
\n", "That said, let's get to business. We will start with a CSV we conveniently downloaded on the 6th of December of 2017 using the coinmarketcap API (NOTE: The public API went private in 2020 and is no longer available) named datasets/coinmarketcap_06122017.csv
.
Why do the count()
for id
and market_cap_usd
differ above? It is because some cryptocurrencies listed in coinmarketcap.com have no known market capitalization, this is represented by NaN
in the data, and NaN
s are not counted by count()
. These cryptocurrencies are of little interest to us in this analysis, so they are safe to remove.
At the time of writing, Bitcoin is under serious competition from other projects, but it is still dominant in market capitalization. Let's plot the market capitalization for the top 10 coins as a barplot to better visualize this.
" ] }, { "cell_type": "code", "execution_count": 3, "metadata": { "dc": { "key": "18" }, "tags": [ "sample_code" ] }, "outputs": [ { "data": { "image/svg+xml": [ "\n", "\n", "\n", "\n" ], "text/plain": [ "While the plot above is informative enough, it can be improved. Bitcoin is too big, and the other coins are hard to distinguish because of this. Instead of the percentage, let's use a log10 scale of the \"raw\" capitalization. Plus, let's use color to group similar coins and make the plot more informative1.
\n", "For the colors rationale: bitcoin-cash and bitcoin-gold are forks of the bitcoin blockchain2. Ethereum and Cardano both offer Turing Complete smart contracts. Iota and Ripple are not minable. Dash, Litecoin, and Monero get their own color.
\n", "1 This coloring is a simplification. There are more differences and similarities that are not being represented here.
\n", "2 The bitcoin forks are actually very different, but it is out of scope to talk about them here. Please see the warning above and do your own research.
" ] }, { "cell_type": "code", "execution_count": 4, "metadata": { "dc": { "key": "25" }, "tags": [ "sample_code" ] }, "outputs": [ { "data": { "image/svg+xml": [ "\n", "\n", "\n", "\n" ], "text/plain": [ "The cryptocurrencies market has been spectacularly volatile since the first exchange opened. This notebook didn't start with a big, bold warning for nothing. Let's explore this volatility a bit more! We will begin by selecting and plotting the 24 hours and 7 days percentage change, which we already have available.
" ] }, { "cell_type": "code", "execution_count": 5, "metadata": { "dc": { "key": "32" }, "tags": [ "sample_code" ] }, "outputs": [ { "data": { "text/html": [ "\n", " | percent_change_24h | \n", "percent_change_7d | \n", "
---|---|---|
id | \n", "\n", " | \n", " |
flappycoin | \n", "-95.85 | \n", "-96.61 | \n", "
credence-coin | \n", "-94.22 | \n", "-95.31 | \n", "
coupecoin | \n", "-93.93 | \n", "-61.24 | \n", "
tyrocoin | \n", "-79.02 | \n", "-87.43 | \n", "
petrodollar | \n", "-76.55 | \n", "542.96 | \n", "
It seems you can lose a lot of money quickly on cryptocurrencies. Let's plot the top 10 biggest gainers and top 10 losers in market capitalization.
" ] }, { "cell_type": "code", "execution_count": 6, "metadata": { "dc": { "key": "39" }, "tags": [ "sample_code" ] }, "outputs": [ { "data": { "image/svg+xml": [ "\n", "\n", "\n", "\n" ], "text/plain": [ "