At the moment, cryptocurrencies inspire confidence in few people. However, an extended statistical analysis of the bitcoin market, conducted at the Institute of nuclear physics of the Polish Academy of Sciences in Krakow, showed that it is not much different from the respected traditional currencies. All indications are that bitcoin is a much better currency than it seems at first glance.
The very first and most popular cryptocurrency is still perceived by many investors with some distrust. The results of a detailed statistical analysis of the bitcoin market contradict this skepticism. The analysis, published in the famous scientific journal Chaos, shows bitcoin - and other cryptocurrencies - in a positive light.
The trust of the masses in traditional currencies seems to be largely the result of their evolution.
We believe that because of the support money was once used as specific material possessions, it is still still.
However, from a physical point of view, traditional currencies have long been the same as cryptocurrencies since their appearance - just bits of information in the memory of Bank computers. The real value of a currency is now determined not by something that supports it, but primarily by its market activity.
“When new markets began to develop in Central and Eastern Europe after the fall of socialism, people had natural questions about their stability. At that time, a number of statistical criteria were defined that facilitated the process of market maturity analysis. We were wondering what results can be obtained by applying these criteria to the bitcoin market,” said Stanislav Drozz, Professor of the Cracow University of technology.
Scientists have analyzed the minute change in the value of bitcoin in the period from 2012 to April 2018.
“Initially, we obtained graphs were a little crooked that were not promising. However, looking closer at these data, we found that this curvature was the result of the formation of the market in the first two years. After this period, the income standards fluctuated in accordance with the cubic law,” the Professor added.
After that, the researchers focused on the volatility of the rates of return. In Mature global markets, the signs of profitability (indicating profit or loss) are not correlated - the same indicators are shown by the bitcoin market. However, temporal correlations can manifest themselves in more subtle details, such as various forms of volatility clustering.
In a broader context, all this means the following.
The traditional foreign exchange market is developed with the help of Central banks or governments. Bitcoin, on the other hand, evolves on its own due solely to the characteristics built into the core of its market. In this case, which currency should be considered the best