Asim Ghosh, Soumyajyoti Biswas, Bikas K. Chakrabarti
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Signature of maturity in cryptocurrency volatility
We study the fluctuations, particularly the inequality of fluctuations, in
cryptocurrency prices over the last ten years. We calculate the inequality in
the price fluctuations through different measures, such as the Gini and Kolkata
indices, and also the $Q$ factor (given by the ratio between the highest value
and the average value) of these fluctuations. We compare the results with the
equivalent quantities in some of the more prominent national currencies and see
that while the fluctuations (or inequalities in such fluctuations) for
cryptocurrencies were initially significantly higher than national currencies,
over time the fluctuation levels of cryptocurrencies tend towards the levels
characteristic of national currencies. We also compare similar quantities for a
few prominent stock prices.