Bitcoin: the crypto-currency soon with the stock market?

Bitcoin is decreasing in its volatility steadily. Were a year ago, fluctuations in the Bitcoin price in the double-digit range not uncommon, seems to be the crypto currency to have somewhat leveled off. In the last 24 hours of Bitcoin has decreased rate by only 0.64 percent, in the monthly course of nearly 3.3 per cent – a sign of maturity? There's some evidence that we are dealing with a crypto currency that is slowly gaining maturity.

Bitcoin, started originally to the banking system revamp, had (and has) with some start-up difficulties. Since the Image of the grubby Internet currency that exists only to facilitate terrorism and money laundering. An image that remains persistent. Add to this the constant doubt of whether it is a snow ball system or the largest bubble the world has ever seen. This was also previously in connection with the high price fluctuations – an Argument that, for example, the American stock exchange, held Supervisory, Bitcoin ETF. As various researchers at the University of Krakow now, however, currencies of some things changed in the Land of Crypto.

comparison of Bitcoin and well-established financial markets

The scientists compared the fluctuations in the Bitcoin exchange rate with which the (supposedly) Mature markets, and noted:

"[...] the Bitcoin market, and possibly other crypto concrete Potential to become soon a regular market – as an Alternative to the foreign exchange market currencies."

To do this, they analyzed the data in the period of time from 1. January 2012 to 31. March 2018, by filtered Trading data, each with a Minute distance. Thus, they examined, among other things, the ratio of the trading volume and price fluctuation (volatility). Just in terms of the last high phase in December they discovered that all the indications are that the Bitcoin market is currently in the process to become more Mature.

the formation of bubbles: A normal phenomenon

probably The most remarkable finding of the study: The formation of bubbles in the high phase in December 2017, the market Matures.

Because:

"[...] On the 16. December 2017, the Bitcoin market experienced the turn of a spectacular trend. He changed from strong growth to sharp sloping [...]. Such phenomena are well-known products of Mature financial markets, and are unstoppable [all markets] [...].“

So be it, especially the bubble-Phase, the talk, that the market had matured to the short-term strong increase and the Bursting of the bubble now:

"is One of the simplest parameters for the time evolution of the price of [a correlation of two parameters] in the (growing) bubble phase [...]. There is some empirical evidence that [the correlation] in financial markets is usually, perhaps even universal.“

ultimately, the conclusion is:

"The Bitcoin market has developed in a short time, very quickly, the statistical indicator, the markets are all "Mature" characteristic, for example. Stock, commodities, or foreign exchange trading. It appears obvious that other crypto currencies will follow this example. This could lead to a completely new market [ ... ].“

conclusion

in summary: The Bitcoin market has been living in the shortest possible time, for which long-matured Finance needed markets for much longer. And: the formation of bubbles is a normal part of the maturation process. So Bitcoin has reached a degree of maturity, which he can, according to the researchers, soon in a number of traditional markets.

The next decision to be a Bitcoin ETF is by the way in November – maybe the SEC takes closer look at this study, Yes.