A CRYPTO CURRENCY: THE SENSE AND TENDENCIES OF DEVELOPMENT UNDER MODERN CONDITIONS

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A CRYPTO CURRENCY: THE SENSE AND TENDENCIES OF DEVELOPMENT UNDER MODERN CONDITIONS

Journal Title: Економічна теорія та право - Year 2015, Vol 1, Issue 20

Abstract

Problem setting. Crypto currencies become more and more popular. The sense of the concept «crypto currency» and a mechanism of its functioning are a topical matter of economic researches. Recent research and publications analysis. Notwithstanding the topicality of research of the sense of the crypto currency and its role in the economy, it is worth mentioning the insufficient scientific development of the theme. It can be explained by the novelty of this money sub-type. Paper objective. The article is dedicated to the determination of the sense of the concept «crypto currency», the main types of crypto currencies, substantiation of their advantages and disadvantages compared with paper and electronic money, and also revealing the main tendencies of development of different crypto currencies. Paper main body. The crypto currency is a type of a digital currency grounded in complicated computations of a function, which can be easily verified through reverse mathematical operations. The main scheme of emission of the crypto currency is the proof-of-work principle. At first, the concept «crypto currency» has been used after the emergence of the peering payment system Bitcoin. An interest in the crypto currency extremely increases due to the demand in the world of «fair money», the total anonymity, and the protection against counterfeits. The crypto currencies possess the enough considerable quantity of both advantages and disadvantages. Only their further development enables to reveal a balance between the advantages and the disadvantages compared with other currencies. The anonymity of payments conduces to the attractiveness of this system for the criminal sphere. This can result in the expansion of the underground economy. Conclusions of the research. The crypto currency is an innovation development, which emerged due to the development of global technologies of the high-speed information transmission caused by the large-scale expansion of the Internet and the great popularity of decentralized networks. Short Abstract to an article A CRYPTO CURRENCY: THE SENSE AND TENDENCIES OF DEVELOPMENT UNDER MODERN CONDITIONS Abstract. The article is dedicated to the analysis of one of sub-types of digital currencies — a crypto currency. The authors consider the sense of the concept «crypto currency» and the main types of crypto currencies. Advantages and disadvantages of the types compared with paper and electronic currency were determined. The main tendencies of development of different crypto currencies were analyzed.

Authors and Affiliations

А. В. КВИТКА, Е. И. ЗАЙЦЕВА

Keywords

EP ID EP227246
DOI -
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