Game Theory: Mario’s Secret Fire Power is… Rocket Fuel!
Many market researchers are of the opinion that the price of gold is an identification of the level of panic. The reason is this: as soon as the underlying assets begin to show some signs of weakness or destabilization, users turn their attention to time-tested options. If for the classic market gold is the personification of stability, then for the crypto community it is bitcoin that plays its role as the oldest coin that overcame difficulties..
The result of this behavior is an artificial increase in the volume of bitcoin in order to reduce the general degree of market tension associated with the loss of stability. It is noteworthy that this theory received support back in 2017, when users, in an attempt to save their funds, transferred capital from altcoins to BTC, making it a kind of savings bank..
The reasons why the coin has received attention and comparison with gold include the following:
- repeated demonstration of strength against the backdrop of a critically negative news background (as an example, we can take a 30% market drawdown after the announcement of the ICO ban in China);
- significant influence on the movement of the altcoin rate (the capitalization of bitcoin gives it weight, allowing it to manage the entire market);
- widespread (despite some technical imperfections, the coin is the most popular among users).
The phenomenon of coin growth on the base «bearish» the trend and sell-off of altcoins may well be explained by this theory.
Earlier, we wrote about how hackers have adapted to the lack of actual anonymity of bitcoin..
text: Evgeniya Likhodey, photo: Frank Robichon / EPA-EFE / Corriere dello sport