Bitcoin price VOTE OF CONFIDENCE: Cryptocurrency as 'stable as dollar and oil' markets

October 15, 2018
20 Views


The crypto market is notorious for its volatility and large swings in price.

In 2017 alone, Bitcoin’s value rocketed to more than double its value, reaching a high $19,783 in December, before then crashing to less than $6,000 by June this year.

But now, new research published in the journal Chaos: An Interdisciplinary Journal of Nonlinear Science, suggests investment in the digital asset may be more reliable than previously thought.

In a report titled “Bitcoin market route to maturity? Evidence from return fluctuations, temporal correlations, and multiscaling effects,” researchers explain Bitcoin is following some of the same trends of the market as physical currencies.

After analysing graphs of Bitcoin’s price, the authors said: “Initially, the graphs we got were a bit crooked, which did not augur anything promising.

“But when we took a closer look at the data, suddenly it turned out that this crookedness originated from the first two years of the analysed period, that is, from the time when the market was just starting to shape itself.

“Later on, the rates of return fluctuated according to the inverse cubic law.”

Cubic law refers to a method of judging a market’s maturity.

Analysts plot price changes in one-minute sequences and compare how they match up.

The authors of the new research looked at Bitcoin’s price between 2012 and April 2018 to determine that despite early irregularities, the market has become more mature is recent years.

They added Bitcoin’s maturity was “particularly evident in the last six months of the examined period”.

In another sign likely to please investors, the researchers said Bitcoin acted with the functions of fluctuations in rates of return as “regular, mature markets, such as the stock, dollar, oil or bond markets”.

However, not everyone agrees with the suggestion Bitcoin is a worthy investment.

Treasury Committee Chair Nicky Morgan has labelled the burgeoning world of cryptocurrency investment as a “wild west” industry.

She said: “Bitcoin and other crypto-assets exist in the Wild West industry of crypto-assets.

“This unregulated industry leaves investors facing numerous risks.

“Given the high price volatility, the hacking vulnerability of exchanges, and the potential role in money laundering, the Treasury Committee strongly believes that regulation should be introduced.”



Source link

You may be interested

Stan Lee working on NEW superhero Dirt Man before his death: Daughter hopeful for MOVIE
Movies
shares0 views
Movies
shares0 views

Stan Lee working on NEW superhero Dirt Man before his death: Daughter hopeful for MOVIE

admin - Nov 14, 2018

[ad_1] Two days ago the 95-year-old creator of some of the world’s best-loved superheroes died.Lee introduced the world to Marvel…

Queen Maxima of The Netherlands in pictures: Dutch Monarch stuns in luxurious plum outfit
Fashion
shares0 views
Fashion
shares0 views

Queen Maxima of The Netherlands in pictures: Dutch Monarch stuns in luxurious plum outfit

admin - Nov 14, 2018

[ad_1] Queen Maxima of The Netherlands and her husband King Willem-Alexander welcomed the President of Austria and his wife to…

Avengers 4: ONE Infinity Stone is key to beating Thanos – Guess WHICH one?
Movies
shares0 views
Movies
shares0 views

Avengers 4: ONE Infinity Stone is key to beating Thanos – Guess WHICH one?

admin - Nov 14, 2018

[ad_1] How do you defeat the man who can control space, time, thought and reality? At the moment everything seems…

Leave a Comment