Bitcoin, the pioneering cryptocurrency, has experienced a tumultuous journey since its inception. In this study, we investigate the BTC price time-series (from August 17, 2010, to June 27, 2021) and reveal that the 2017 pricing episode was not unique. We describe at least ten significant events spanning a wide range of price magnitudes ($US 1 – $US 60k). Although we are not able to predict price peaks, we succeed in approximating the BTC price evolution using a function similar to a Fibonacci sequence. Additionally, we compare Bitcoin with other financial instruments, suggesting its classification as an illiquid asset.

Key Findings

• Multiple Crises:Beyond the 2017 boom, Bitcoin has faced numerous price fluctuations since 2010–2011.
• These events share a similar duration of approximately 50–100 days.
• Fibonacci-Like Pattern:Our model approximates BTC price evolution using a function resembling a Fibonacci sequence.
• While not predictive, it highlights recurring patterns.
• Illiquid Asset:Comparing Bitcoin with equities, currencies, and gold, we suggest its classification as an illiquid asset.

Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. It provides immediate, shared, and observable information stored on an immutable ledger accessible only to permissioned network members. Key elements include:

1. Distributed Ledger: All network participants access the ledger, recording transactions only once to eliminate duplication.
2. Immutability: Transactions cannot be changed or tampered with after recording.
3. Smart Contracts: Rules stored on the blockchain run automatically, defining conditions for various transactions.
4. Data Blocks: These record asset movements, conditions, and other details, forming a secure chain of data.

Blockchain reduces risk, cuts costs, and enhances transparency across various industries12.

 Top cryptocurrencies that you might consider for investment:

• Bitcoin (BTC):The world’s oldest cryptocurrency, created in 2009 by Satoshi Nakamoto.
• Runs on a secure blockchain using proof of work.
• Price growth: From $500 in May 2016 to around $63,780 as of March 19, 2024 (12,656% growth)1.
• Ethereum (ETH):A blockchain platform and cryptocurrency.
• Known for smart contracts and NFTs.
• Price growth: From $11 in April 2016 to around $3,304 (29,935% growth)1.
• Tether (USDT):A stablecoin backed by fiat currencies.
• Favored by investors wary of extreme volatility.
• Market cap: $103.6 billion1.
• Solana (SOL):Powers DeFi, DApps, and smart contracts.
• Price growth: From $0.77 at launch (2020) to around $183.10 (23,679% growth)1.
• Binance Coin (BNB):Used for trading and fees on Binance exchange.
• Market cap: $77.7 billion

References

1. Read the full article on PLOS ONE
2. Bitcoin API Reference
3. Blockchain and Cryptocurrencies: Economic and Financial Research
4. A Bibliometric Review of Cryptocurrencies: How Have They Grown?

Bitcoin’s journey continues to captivate researchers and investors alike. 🌿🔥