Journal of Nonlinear Science Research Shows Bitcoin is Stable as Other Fiat Currencies and Oil


Research Shows Bitcoin is as Stable as Other Fiat Currencies and Oil

Virtual currencies have always been attacked for their volatility and unpredictability. However, there is a new research published in the respected Journal of Nonlinear Science, that suggests that virtual currencies could be, in the near future, as reliable as fiat currencies.

There are several experts that agree that cryptocurrencies are too volatile and unstable to be used as a currency. However, this has been largely unfounded. During 2017, Bitcoin experienced massive price fluctuations that can be seen in the fact that BTC moved from $1,000 at the beginning of 2017 to $20,000 in December 2017. Since then, some virtual currencies lost over 90% of their value.

The report has been analysing graphs of Bitcoin’s price in the last years. During the first years of the analysis, the experts understood that Bitcoin was not working in a promising way. However, things changed after 2014 when the rates of return fluctuated according to the inverse cubic law.

The analysts explained about what they found:

“Initially, the graphs we got were a bit crooked, which did not augur anything promising. But when we took a closer look at the data, suddenly, it turned out that this crookedness originated from the first two years of the analysed period, that is, from the time when the market was just starting to shape itself. Later on, the rates of return fluctuated according to the inverse cubic law.”

The cubic law refers to a method that judges market’s maturity. As per the analysts, Bitcoin’s maturity was evident in the last six months of the examined period which ranged from 2012 and April 2018. Additionally, the researchers said that Bitcoin was acting as a regular market such as the stock, dollar, oil or other bond markets.

Cryptocurrency companies have also been working in order to offer better products and services to the market. The crypto space, in general, is maturing as time passes and it will continue to do so in the coming months and years. As the market continues to expand, new regulations will be established, improving stability.

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