Bitcoin Volatility in Web 3.0 and Revelation to Digital Currency

Abstract

In Web 3.0, bitcoin is the first cryptocurrency and one of the most prominent digital currencies. Cryptocurrency is a form of digital currency that operates on blockchain technology which is decentralized, transparent, and secure. Surrounding why bitcoin fluctuates so intensively, the article illustrates bitcoin’s history, explains the running logic and technical principle behind the volatility, analyses a few factors that contribute to its volatility, and explores the essence of bitcoin through the comparison with stock. Stocks represent the ownership of a specific corporation while bitcoin doesn’t. Bitcoin is more like an artwork whose value is bestowed by the market consensus. Further, the article compares bitcoin with digital RMB. Digital RMB is far more predictable than bitcoin and has profound meaning for China. In the future, digital currency is going to play a dominant role across the world. Though bitcoin is on a downward trend, blockchain technology and cryptocurrency will have positive developing prospect. The article aims at introducing abstract bitcoin in a comprehensible way to help crypto and digital market newcomers digest bitcoin and blockchain and access Web 3.0 and digital currencies.