Researchers say that the Bitcoin experiment has yielded a 300% higher profit than Hodling

A team of academic researchers from the international Hellenic University and Democritus University of Thrace recently published a paper supporting the “Efficient Market Hypothesis” (EMH) for Bitcoin (BTC) trading.

It is a controversial theory of the researchers who claim that the EMH has contributed to modeling about 300% of the Hoddle strategy in synchronized crypto portfolios.

According to their research:

“We've been able to develop models whose predictions can lead to higher returns for investors than they would if they followed a well-known buy-and-hold strategy.”

At the heart of the EMH is the idea that the value of a share of wealth reflects its true market value and all relevant market information. If true, it is impossible to outperform the market by timing or intuitively predicting stocks.

Traditionally, proponents of the EMH suggest that investors should invest in low-cost passive portfolios instead of trying to beat the market with ill-timed stock picks.

Meanwhile, opponents of the EMH reject this line of thinking, pointing out that some investors, such as Warren Buffett, do nothing but beat the market.

According to the research team in Greece, whose research in the aforementioned paper is limited to observations on the Bitcoin market, EMH can be applied to cryptocurrency trading to replace the standard “buy and hold” or hodling to avoid market volatility. .

To test this, the researchers developed four different artificial intelligence models trained on multiple data sets. After training and testing, they selected models that resisted both “beat the market” and survival strategies.

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According to the team, the best model returns 297% of the baseline. This gives some credence to the idea that EMH can be a useful tool for Bitcoin and cryptocurrency traders. However, the authors conducted their study using historical data and portfolio management.

The results of this study, while empirical, will do little to change the minds of those with strong opinions on the effectiveness of the EMH.