Scientific Journal Chaos – Cryptocurrency as Stable as Oil and DollarOctober 14, 2018
Cryptocurrency according to a famous journal has been expressed to be a reliable form of money. The vote of confidence is huge and from authentic sources. The Scientific Journal has to say that the asset type has matured and therefore reliable.
There is a widespread controversy as to whether cryptocurrencies can be adopted as a reliable money. With high volatility in the price trends of Bitcoin and other major cryptocurrencies, investors are already losing confidence about the value of the crypto. The authenticity of crypto as reliable money has been debated.
Salim Lahmiri and Stelios Bekiros investigated the “chaos, randomness and multi-scale temporal correlation structure in prices and the returns of this specific virtual and speculative market in two distinct time periods particularly the low-level regime period and several other factors.”
The report titled “Bitcoin Market Route to Maturity” states that the path traced by Bitcoin is similar to the trends faced by physical currencies. The cryptocurrency market has been working through high volatility and huge price swings in price.
In the year 2017, the value of Bitcoin doubled up and went as high as $19,783 in December 2017. This was a short while before the price trended down to less than $6000 by June 2018 this year.
The publication in the research work published in the journal Chaos, which is an Interdisciplinary Journal of Nonlinear Science, states that investing in the digital asset will be reliable than it was previously considered.
The research has been substantiated with proof from the price fluctuations with respect to profits, temporal correlations, and the different multi-scaling effects.
The trend lines of Bitcoin have been closely studied, and the graphs were running haywire and did not promise anything good or bad. When the data was studied very closely it is pretty visible that the market is beginning to shape itself. The data that was studied was related to the data trend that was seen during the beginning period.
The price of the currency returned by the inverse cubic law at a later point in time. The cubic law is a mathematical method that is used to judge the maturity of the market. The analysts plot the trend maps in one-minute sequences, and they compare how the price trends match the trending patterns of the present and the past.
The authors researched the trends of Bitcoin from the data they have taken from the price charts from 2012 through April 2018. Regardless of the early irregularities, they observed that the cryptocurrency derived its maturity over the years.
The maturity of Bitcoin has been particularly noted in the past 6 months. However, not all agree with the bet on Bitcoin as a worthy investment. Recollect Dr. Doom.