Bitcoin has been through a lot of damage through the year, but the maturing market is helping it to be more widely accepted and necessary. A recent publication brought to light some details that suggest that this progress could mean some great news for Bitcoin investors.

The journal is called “Chaos: An Interdisciplinary Journal of Nonlinear Science.” Within the journal, users have access to read a report called “Bitcoin market route to maturity? Evidence from return fluctuations, temporal correlations, and multi-scaling effects.” Here, consumers can read a scientific case that supports the idea of using Bitcoin as a lucrative investment. The authors in charge of the report are from Henryk Niewodniczanski Institute of Nuclear Physics (IFJ PAN) of the Polish Academy of Sciences in Krakow. Despite the fact that Bitcoin and cryptocurrency have a reputation for being speculative investments, they could turn out to be more beneficial than originally anticipated, according to the report.

Most people that are against cryptocurrency, and specifically blockchain, complain that “digital currency isn’t backed by anything.” However, this research indicates that fiat currencies are in a similar situation, considering that the true value of currency is only determined by the way it is used and the history it has with the market.

While evaluating the Bitcoin market from the last six years, from 2012 to April 2018, the information revealed every price change within one-minute patterns. The goal was to see if cubic law had anything to do with the changes, which is just a theory that applies pricing data to determine the maturity of the market.

For the first two years of the analyzed period, the data didn’t show a promising result. However, maturity increased rapidly as more people started to learn about Bitcoin. The researchers said,

“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 analyzed 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.”

Applying other scientific methods and theories, the research further showed other signs that the market is maturing, saying,

“In the case of Bitcoin, we detected multifractality in the functions of fluctuations in rates of return, particularly evident in the last six months of the examined period. This was of the same type as for regular, mature markets, such as the stock, dollar, oil or bond markets.”

Based on the fast maturation of the cryptocurrency market, it’s possible that Bitcoin and other tokens have great potential and may even cause a competition with Forex. The report indicated,

“The most important statistical parameters of the Bitcoin market indicate very clearly that for many months now it has met all the important criteria of financial maturity. It seems that in the case of other cryptocurrencies it will be possible to expect a similar transformation. If this happens, the world’s largest market, the Forex market, can look forward to very real competition.”

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