# Relevant Stylized Facts About Bitcoin: Fluctuations, First Return Probability, and Natural Phenomena

## TL;DR

This paper investigates whether Bitcoin exhibits stylized facts similar to traditional financial assets, finding that it displays properties like Gaussianity, fluctuation scaling, and laws analogous to natural phenomena, indicating similar underlying statistical behaviors.

## Contribution

It is the first comprehensive analysis showing Bitcoin obeys multiple stylized facts and natural laws, bridging financial and natural phenomena understanding.

## Key findings

- Bitcoin exhibits aggregational Gaussianity and fluctuation scaling.
- It obeys Omori and Gutenberg-Richter laws, similar to natural earthquakes.
- Global persistence in Bitcoin follows a power law with an exponent akin to stock markets.

## Abstract

Bitcoin is a digital financial asset that is devoid of a central authority. This makes it distinct from traditional financial assets in a number of ways. For instance, the total number of tokens is limited and it has not explicit use value. Nonetheless, little is know whether it obeys the same stylized facts found in traditional financial assets. Here we test bitcoin for a set of these stylized facts and conclude that it behaves statistically as most of other assets. For instance, it exhibits aggregational Gaussianity and fluctuation scaling. Moreover, we show by an analogy with natural occurring quakes that bitcoin obeys both the Omori and Gutenberg-Richter laws. Finally, we show that the global persistence, originally defined for spin systems, presents a power law behavior with exponent similar to that found in stock markets.