Abstract
Bitcoins and cryptocurrencies are in great debate these days. With its great market capitalization in 2020, after the COVID-19 outbreak, the attention of numerous investors has been attracted toward this new form of asset. So, we have been attracted toward the flair of this unforeseeable asset. In this paper, we have worked on the price OHLC (Opening, High, Low, and Closing) in a long span of time windows starting from its origin and have performed a comprehensive statistical analysis regarding the market value of Bitcoins in different time frames of last five years. Alongside that, we have validated its price using Weber’s law and have later supported our analysis using Zipf’s law. Though Weber’s law is well equipped to work in the branch of psychophysics, yet we have tried to extend its definition and have applied the law with a statistical essence in the well-fledged Bitcoin worth dataset. Finally, to support our analysis, we have also validated the price of Bitcoins using Zipf’s law and discussed some advantages of applying Weber’s law over Zipf’s law.
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Notes
- 1.
At that time, it was estimated to be around 44 USD.
- 2.
The first block of BTC was mined by Satoshi Nakamoto, which is referred as Genesis Block.
- 3.
α = 1, β = 2 and \(\alpha =2,\beta =1\) don’t have any numerical significance. We have considered these values just for the sake of graphical representation.
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Choudhury, M.R., Dutta, A., Kumar De, A. (2023). An Insight to Bitcoin Price Using Weber’s Law. In: Chakraborty, B., Biswas, A., Chakrabarti, A. (eds) Advances in Data Science and Computing Technologies. ADSC 2022. Lecture Notes in Electrical Engineering, vol 1056. Springer, Singapore. https://doi.org/10.1007/978-981-99-3656-4_39
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