Bitcoin [BTC]’s relatively stabilizing prices are a marker that the currency is gaining global acceptance, edging closer to being a regular market, according to a Poland-based research.
The report, called ‘Bitcoin market route to maturity? Evidence from return fluctuations, temporal correlations, and multi-scaling effects’, states that BTC is now on the verge of being a valid “competition” to Forex markets.
The study traces the per-minute price changes of Bitcoin since 2012 and the various factors that led to the fluctuation in the markets. After studying the factors, including volatility auto-correction and return distributions, the report concludes that Bitcoin and its market looks eerily similar to that of a market maturation curve.
The report states:
“While early trading was affected by system-specific irregularities, it is found that over the months preceding April 2018 all these statistical indicators approach the features hallmarking maturity. This can be taken as an indication that the Bitcoin market, and possibly other cryptocurrencies, carry concrete potential of imminently becoming a regular market alternative to the foreign exchange.”
Stanisław Drożdż, one of the professors involved in the study which was featured in the journal ‘Chaos: An Interdisciplinary Journal of Nonlinear Science’, said that apart from the initial fluctuation, Bitcoin has been reasonably consistent.
“…The 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.”
According to the researcher, Bitcoin has now met every parameter used for grading a financial maturity. He was optimistic about the future of other cryptocurrencies if Bitcoin could make the breakthrough. The professor stated:
“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.”
He further added that if this happens, Forex markets around the world will find fierce competition in cryptocurrencies, pointing at a bright future for the decentralized tokens.
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