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Is Bitcoin (BTC) Better Than USD? - Global Coin Report
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Is Bitcoin (BTC) Better Than USD?

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Despite all its recent progress, cryptocurrencies still do not inspire trust in a lot of people. Many view them as unsafe money, with its very nature being doubtful. However, a recent report by the Polish Academy of Sciences’ Institute of Nuclear Physics shows that situation regarding cryptocurrencies may not be as bad as it seems. In fact, the report claims that Bitcoin might even be a better currency than it looks like.

Bitcoin vs traditional money

Bitcoin, as many are already aware of, is the first cryptocurrency. It was created a decade ago and was officially launched in 2009. But, even though it has been around for around 9 years at this point, it is still largely mistrusted by a lot of investors, especially when it comes to large institutions.

However, thanks to the Cracow-based Institute of Nuclear Physics’ recent report, this common opinion might actually be wrong. The Institute has conducted a detailed statistical analysis of the BTC market and has published the results in a scientific journal called Chaos: An Interdisciplinary Journal of Nonlinear Science.

Surprisingly enough, the report portraits Bitcoin in a very positive light.

The report started by commenting on the credibility of traditional money. In the past, money that people have been using was backed by specific material commodities, such as gold. These commodities gave the money its value and served as a guarantee that the money actually has worth. This is not the case anymore, however, we still believe in the value of money due to the fact that it once had it.

Basically, this puts the traditional money in the same situation with cryptos. The difference is that cryptocurrencies never had a real-world asset to back them up. Instead, their value comes from investors’ belief in them. The same is true for traditional money these days, and both cryptos and fiat currency value are determined by what is happening to them, or rather — their markets.

What did the report find?

Throughout its short history, Bitcoin’s price has shown quite high levels of volatility. However, despite this, the price continued growing as more people learned about it and assigned it additional value. The Institute’s analysis studied these price changes in the period between 2012 and 2018. Initially, the received graphs did not show any promising results, with no real pattern being obvious.

Upon a closer inspection, however, the crookedness of the graphs was established to be a result of the first two years during which BTC’s behavior was analyzed. In short, the results were seemingly inconclusive due to attempts of the young market to shape itself. Soon enough, the rates of return — which the researchers decided to study first — fluctuated in accordance with the inversive cubic law.

Basically, this law means that the distribution is described by the inversion of the third power of the quantity that was examined.

After reaching satisfying results regarding the rates of return, researchers decided to move on to the problem of their volatility. After studying mature global markets, it soon becomes clear that the signs of returns are not exactly correlated. This is also exactly what was observed within the Bitcoin market as well.

The only real difference is that time correlations within traditional markets may be a bit more subtle. As a result, they often come in different forms of volatility clustering. However, volatility clustering is also associated with yet another feature, which is the system’s reluctance when it comes to changing trend.

This reluctance is best described with a certain parameter that is called the Hurst exponent. Basically, the Hurst exponent has values that range from 0 to 1. If a value is at 0.5, this means that the market has the same probability of going up or down. If the value is below 0.5, we can expect situations that will bring a sudden rise in value, but the probability of a later decrease gets increased as well. The same goes in the other way. However, if the value is above 0.5 then the changes are seen as persistent in nature, and every increase brings the possibility of yet another increase. Also, each drop means that another drop is more likely to come.

After studying the Bitcoin market, researchers deduced that the Hurst exponent approaches exactly 0.5. This is one of the biggest and most important characteristics of highly-reputable markets.

Another important feature that announces the market maturity is the so-called multifractal nature of the market’s characteristics. Simply put, multifractals are fractals of fractals. Basically, they are structures in which we can observe self-similarity, but only if different fractal fragments are brought to different speeds. Analysis of these multifractals revealed that certain dependencies exist on different scales.

In Bitcoin’s case, researchers found multifractality in rates of returns’ functions of fluctuations. This grew to be even more obvious during the last six months of the observation period (November 2017 – April 2018). This means that the results gained by observing Bitcoin are pretty much the same ones that can be gained from the stock, bond, oil, or even dollar markets.

Furthermore, the Institute’s Professor Stanislaw Drozdz also deduced that Bitcoin market’s most important statistical parameters indicate that BTC meets all the criteria that it needs to meet in order to be considered a mature financial market. Because of this, the professor believes that the Forex market, the largest market in the world, can soon expect a very real competition.

This also leads to some intriguing conclusions and observations. It is known that foreign exchange markets cannot mature without the help of governments or central banks. However, Bitcoin was capable of maturing entirely on its own, thanks to nothing else but its own characteristics. With that in mind, Bitcoin actually seems to be far more capable than the USD, or any other fiat currency, for that matter.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Why Bitcoin (BTC) Revival is Likely to Continue

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The cryptocurrency market has been doing rather well in 2019 — certainly much better than in 2018. More than a year ago, the market crashed from its all-time high, and in the months that followed, it lost over 80% of its market cap. Bitcoin (BTC), as the leading digital currency, also dropped from $20,000 per coin to barely $3,200 in 2018.

These days, however, the situation seems to be turning, with digital currencies seeing significant growth in prices ever since mid-February. While January stopped the drops, February is the month when the market once again started seeing gains, and this kind of behavior has continued to this day. But, what does this mean for the future? Is this a passing trend, or is the crypto winter truly over?

The revival of Bitcoin

Questions such as the short-term future of Bitcoin are on many traders’ and investors’ minds right now and have been ever since the prices started growing again. A well-known Futures Now trader, Jim Iuorio, recently stated that Bitcoin would start seeing massive profits if it surpasses the price of $4,045. That was, of course, before the coin surged by around $1000 in the last week.

However, Iuorio’s prediction was that BTC is unlikely to go below $3,820, while the growth beyond $4,045 would mean massive gains for those involved with the industry. Soon after this prediction…

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How to Become a Millionaire without Risking Everything with Bitcoin

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It’s been well over a year since the crypto market reached its peak and then crashed, dropping to such lows that most of the coins lost anywhere between 80% and 95% of their value. A few of them lost even more. Of course, this was not enough to eradicate the crypto market, and the bulls are still as optimistic as ever, especially these days, when Bitcoin price surges again, taking the rest of the market with it.

Some predictions claim that Bitcoin will reach its own glory days within a year or two, and there are even speculations that the largest cryptocurrency might spike up to $100,000 per coin. One claim from last week even sees BTC hitting $400,000, as the highest price which someone was brave enough to predict.

While it is certainly possible — at this point, pretty much anything is — not everyone is willing to take such a gamble and invest their hard-earned money into a risky asset such as digital currencies. With that in mind, here are three alternatives that are considerably safer than Bitcoin and the altcoins.

1. Investing and re-investing in stocks

A lot of people — especially younger generations — find stocks to be incredibly boring. Most of the time, all you do is invest, and use the returns for re-investing in high-yielding shares. However, while boring will not…

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The Best Time to Buy Bitcoin (BTC) Approaches

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Ever since 2019 started, the bear market of 2018 has been losing momentum, with the bulls emerging numerous times in short intervals. This was the beginning of a crypto recovery, which still has quite a long way to go.

However, last week, Bitcoin saw massive growth in transactions, reaching a 14-month high. These were the levels that were previously seen back in 2017, as BTC approached its highest point in terms of price. The growth also reflected strongly on BTC price, which spiked yesterday from around $4.100 to the current $4,672.

Meanwhile, Bitcoin market cap followed as well, currently sitting above $82.3 billion, while the trading volume exceeded $14.5 billion.

What caused the growth?

While this is an exceptional growth, and potentially a start of the bull run that everyone was waiting for, it did not come without a cause. One of the reasons why BTC surged was last week’s Weiss Ratings report of multiple different cryptocurrencies. The report’s authors even stated themselves that the best time to invest might be very near at this point.

Weiss Ratings has done reports about specific coins in the past as well, and this time, they noticed a significant improvement in coins’ performance. The report mentions growth in user transaction volume, network capacity, as well as network security, which the authors took as an improvement coming from the evolution of the…

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