It’s been a while since I last gave y’all a set of updates on the bitcoin so here’s a new one for the forex traders out there who are also into cryptocurrency trading.
MIT Algorithm Cracks Bitcoin Code?
Researchers over at the MIT’s Computer Science and Artificial Intelligence Laboratory and at the Laboratory for Information and Decision Systems (I know, I know… It all sounds too sci-fi for me, too!) claim to have found the magic formula for predicting the value of a bitcoin based on past price patterns.
Specifically, they employed Bayesian regression techniques in order to predict bitcoin price behavior for the next ten seconds. If prices went beyond their estimated threshold, they would buy bitcoins. Conversely, if prices fell below the threshold, they would sell bitcoins. It sounds like such a simple strategy so I was amazed to find out that this research team nearly doubled their investment in just 50 days!
Team leader Devavrat Shah, who became known for his research paper on predicting trending topics on Twitter, says that they plan to expand their data-mining collection in order to fine tune the algorithm. I don’t know about you, but I’m definitely gonna keep tabs on this one!
XBT as ISO-Certified Currency Code
Time to wave goodbye to BTC as bitcoin’s nickname? The integration of bitcoin payments in online transactions and even some regular establishments has ushered in the idea of adopting a more formal code for the cryptocurrency.
ISO, which is short for the International Organization for Standarization, assigns country and currency codes and keeps it in a centralized database. Their plan is to use XBT for bitcoin, with the prefix X denoting non-national affiliation.
Of course this doesn’t sound like such a big deal (A rose by any other name…) but experts say that this could allow bitcoin to be available as a settlement unit for any business that makes use of the cryptocurrency. The plan is for each XBT unit to have eight subunits or decimal places.
2016 as the Year of the Bitcoin
With all the developments in the bitcoin industry, it probably wouldn’t be such a huge surprise if BTC (or will it be XBT?) goes completely mainstream. Industry analysts predict that the cryptocurrency will take over majority of transactions all over the world by 2016.
Wait a minute. You mean to say that this year still ain’t the Year of the Bitcoin?! Well, considering how it lost around 50% of its value to the dollar in previous months, it’s probably too early to say that the bitcoin has established its presence. Regulation is still in the works and let’s face it, I doubt anyone who’s still alien to the interwebs would know what the heck a bitcoin is.
But a lot could change in a couple of years, with companies starting to integrate bitcoin payments and governments opening up to the idea of regulating this growing industry. Do you think the value of the bitcoin would surge by then? Or will it stay as volatile and seemingly unpredictable as it is now? Go on and share your thoughts in our comments section!