Dutch economist and Advisor on policy of the National Bank of the Netherlands believes he has found a precise correlation with the fluctuations in the value of cryptocurrencies Bitcoin and search queries of bitcoin to Google.
The period before the fall of the price of the flagship digital currency in the beginning of 2018 demonstrates his theory, the economist Joost van de Burgt. He suggested that, regardless of the positivity or negativity of news, the number of search queries on the cryptocurrency Bitcoin has increased in the same period when increased cost to BTC.
The economist is unhappy with the proposed links to the theory of Hyman Minsky, in which the researcher argues that the economic bubble passes through five discrete phases. On this theory, often spoke during the last global financial crisis. Minsky suggests that levels of serious financial instability following the displacement, boom, euphoria, profit and panic.
Dutch economist suggested that a bubble followed by a subsequent panic, most likely, was “neutralized” through the introduction of the bitcoin futures:
“I believe that the introduction of futures has helped to blow the bubble before it reaches a critical level, where he could break completely.”
“Maybe, Bitcoin is different from anything we’ve seen before, and maybe ten years later its market capitalization is very high, as it gets the status of a new global currency.”