The Dutch economist and policy advisor at the National Bank of the Netherlands believes he has found an accurate correlation with fluctuations in the value of the Bitcoin cryptocurrency and Google searches for cryptocurrency.
The period leading up to the fall in prices of the flagship digital currency in early 2018 demonstrates his theory, says economist Joost van de Burgt. He suggested that, regardless of whether the news was positive or negative, the number of searches for the Bitcoin cryptocurrency increased in the same period as the value of BTC was increasing.
The economist is unhappy with the proposed references to Hyman Minsky's theory, in which the researcher claims that the economic bubble goes through five discrete phases. This theory was often talked about during the recent global financial crisis. Minsky suggests that levels of severe financial instability follow displacement, boom, euphoria, profit-making and panic.
A Dutch economist suggested that the bubble that followed the ensuing panic was most likely “defused” by the introduction of bitcoin futures:
"I believe that the introduction of futures helped deflate the bubble before it reaches a critical level where it could burst completely."
"Perhaps Bitcoin is different from anything we've seen before, and maybe in ten years its market capitalization will be very high as it gains the status of the new global currency."
The researcher also said that he found no correlation between Google searches and the value of gold and other assets.
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