A REVIEW ON CRYPTOCURRENCY: THE VOLATILITY OF BITCOINS

Abstract

This study seeks to analyze conceptual, innovative, marketing and quantitative aspects of Bitcoin (BTC) and how these are reflected in the volatility of its return. After describing basic concepts of digital currencies and BTC, an electronic currency created in 2009, we contextualize BTC as a financial innovation. A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution .We propose a solution to the double-spending problem using a peer-to-peer network. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they'll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone In my contribution I want to analyses this currency-system from a sociocy bernetic point of view .After presenting the basic mechanisms of Bitcoin money creation, the value regulation etc. We want to focus the basic processes of self-organization in this high-complex social system.