A pre-print study conducted by computer science researchers from the University of Melbourne and Tsinghua University suggests that the cryptocurrency market is showing signs of maturity comparable to traditional equities markets. Titled “Collective dynamics, diversification and optimal portfolio construction for cryptocurrencies”, the study examines the role of cryptocurrency in portfolio diversity and how it compares to equities. While the two markets remain different, the researchers found that cryptocurrency shows clear signs of maturity, particularly in terms of the collective dynamics and diversification benefits of different portfolio spreads.
The study also suggests that cryptocurrency may offer a lower complexity threshold for diversification compared to equities. The authors highlight opaque underlying business functions as an issue in the cryptocurrency market and call for the development of better understood and widely disseminated cryptocurrency investment principles.