Blockchain

Bitcoin Markets Comprise Imminent Alternative to Foreign Exchange

from The Bitcoin News 5 years ago 0 0 661

The study, which is “Based on 1-min price changes recorded since year 2012,” assesses “the fluctuation properties of the rapidly emerging Bitcoin market … over chosen sub-periods, in terms of return distributions, volatility autocorrelation, Hurst exponents, and multiscaling effects.”

“Since high-frequency price data are available since the beginning of trading,” the researchers argue that “Bitcoin offers a unique window into the statistical characteristics of a market maturation trajectory.”

Professor Stanisław Drożdż, one of the researchers who worked on the study, stated: “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 analyzed 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.”

“The most important statistical parameters of the Bitcoin market indicate very clearly that for many months now it has met all the important criteria of financial maturity. It seems that in the case of other cryptocurrencies it will be possible to expect a similar transformation. If this happens, the world’s largest market, the Forex market, can look forward to very real competition,” professor Drożdż concluded.

Do you agree with the researchers’ assertions that the bitcoin markets will soon be seen as a mainstream alternative to foreign exchange? Share your thoughts in the comments section below!

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