In a new study by the Warwick Business School researchers come to the conclusion that the prices of crypto currencies are the economic factors influenced. Instead, they were only of the mood of the investors. In addition, the scientists Parallels to the Dotcom recognize the bubble at the end of the 1990s.
Bitcoin: investment bubble, object of speculation or currency? This is the question a team of researchers from the Warwick Business School in the United Kingdom. You have come to the conclusion that crypto-follow the currencies, it’s own dynamics. From this you conclude that you are for Investments in the long term better than short-term speculation.
According to the study, the ECHO is BTC, researchers have studied the Trading Patterns of the 14 largest crypto-currencies examined. As a basis for their analysis, they took the period from April 2016 to September 2017. You have come to the conclusion that there is no correlation to economic indicators on which investors, their decisions would be based.
Daniele Bianchi, of Warwick Business School ultimately comes to the conclusion, that the price development depended only on past returns, the Hype and the emotions of the investors observe the price. You will recognize that Bitcoin is, at best, suitable as a long-term Investment vehicles:
“If you look at currencies, the high volatility of Bitcoin, and the first 14 Crypto, it means that he insert difficult to use as reliable savings in the short term, not to exceed in the long run, can be seen.”
Warwick Business School recognizes the Parallels to the dot-com bubble
Furthermore, the researcher recognizes Parallels to the Dotcom bubble of the late 1990s. It assumes that a majority of the projects (ICOs) will fail, while only a handful survive. Here, it is important for investors to carefully so the few that survive to be weighed and the “right” investment options to pick out–.
Furthermore, Bianchi comes to the conclusion that crypto-currencies are currently more capital investments than an Investment in traditional currencies:
“Crypto-currencies have more to do with the participation in companies as an Investment in traditional currencies. So you can see the Holding of Bitcoin, in the end, rather as an Investment in the Blockchain technology than as a pure speculation.“