Is Bitcoin A Traditional Market?
Over the past year, we have seen an array of opposing thought processes taken in regard to the digital currency market. Some of them continue to claim the market as being âakinâ to the Tulip Bulb mania of 17th Holland as put by Finance Magnates.
Some people see Bitcoin and other general cryptocurrencies as being the future of all currency and believe that it is only a matter of time before we start buying our clothes and food with a kind of common digital token.
Of course, there is no of knowing but some think it lies somewhere in the middle. Last week, researchers from the Institute of Nuclear Physics in Poland published a paper that claims that the Bitcoin market follows many of the similar numerical patterns that traditional markets have.
To put this in layman's terms one of the lead researches on the paper and the head of the Complex Systems Theory Department at the Institute, Stanislaw Drozdz was interviewed by Finance Magnates who asked him several questions to get to the bottom of the results.
What did you find in your research?
One of the questions came out with an interesting answer by Drozdz who said:
âOur research found that, as of March 2018, the Bitcoin market, through the steps of gradual self-adoption since its inception, is already obeying the same kind of price-fluctuation patterns as the world largest conventional markets like the S&P500, currency exchange market, oil or gold.â
Do you think the similarities between Bitcoin and traditional markets will result in a rivalry between the two?
In his answer, Drozdz responded by saying that he would rather avoid speculation and that there is a lot of mistrust which is natural when something like Bitcoin comes out of the blue.
âLetâs also remember that already there are many people who believe and trust in Bitcoin. Currently, they are ready to pay several thousand US dollars for one Bitcoin unit. Not long ago, in 2009, 10,000 of that same unit were exchanged for 2 pizzas.â
Do you think the Bitcoin market will ever be fully governed?
Drozdz responds to this question by saying:
âBitcoin is, by its very nature, decentralized and the total amount of crypto-units is limited â this may constitute one of those factors that determine its value, although it is only the global market that will reveal that; not humans as individuals.â
What are your thoughts? Let us know what you think down in the comments below!