Forex Confronts Competition With Bitcoin Due To Rapid Rise Of Cryptocurrency Market

A group of European scientists from the Polish Academy of Sciences has recently published a research that highlighted a few characteristic features of the highly developing cryptocurrency industry. They have claimed that the Bitcoin market is facing a phase of accelerated maturity that will open lots of opportunities to have viable alternatives to any traditional financial market.

Titled “Bitcoin market route to maturity? Evidence from return fluctuations, temporal correlations and multiscaling effects,” the report shows a reasonably optimistic view of the future of digital currencies. The report is prepared by the researchers of Henryk Niewodniczanski Institute of Nuclear Physics (IFJ PAN) of the Polish Academy of Sciences in a southern Poland city, Krakow.

According to the report, though the world’s largest cryptocurrency Bitcoin has experienced a substantial duration of accelerated growth, the market continued following some of the similar trends as other traditional markets, including those of other fiat currencies. The basic objective of the report is to see if the price fluctuations abided by the parameters of Inverse Cubic Law. This is a financial theory that utilizes pricing specifics to fathom market maturity. This further establishes the relationship between price fluctuations and trading activity including other factors to determine the stability of a market, as reported in the original report released by ResearchGate.

The researchers further commented that the graphs they observed initially were a tad crooked, which did not predict anything promising. While having a closer look at the data, the researchers realized that the crookedness originated from the first two years of the analyzed period since (the time) the market commenced taking shape itself. However, the rates of return fluctuated based on the inverse cubic law, as reported by Crypto Crimson.

Hence, the researchers have emphasized that the cryptocurrency market is witnessing economic transformation through their fast maturing fundamentals. As far as the market maturity of Bitcoin is concerned, Professor Drożdż said that he and his team detected multi-fractality in the functions of fluctuations in rates of return, particularly evident in the previous months of the examined period. Their reports have also tried to emphasize that its market is portraying signs of maturity by fulfilling all the required statistical parameters of a fanatically mature market.

The post Forex Confronts Competition With Bitcoin Due To Rapid Rise Of Cryptocurrency Market appeared first on OWLT Market.

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