BITCOIN CRYPTOCURRENCY
Journal Title: Проблеми системного підходу в економіці - Year 2017, Vol 4, Issue 60
Abstract
The global economy of “free market” is experiencing a period of irreversible transformation. There is a digitization of various spheres of life; there emerges a completely new type of socio-economic relations, a monetary system based on blockchain technologies, a combination of natural and artificial intelligence, in which money is presented as artificial information. Bitcoin means decentralized currency that is protected by cryptographic methods. Bitcoin (from English “bit” – the unit of information, and “coin”) – a peer-to-peer electronic payment system that uses the same units for accounting. Bitcoin is characterized as a digital cryptographic currency, an innovative payment system or a new kind of money. Bitcoin is the first cryptographic protocol for cryptography. Cryptographic currencies can be used even when states impose restrictions and prohibitions on international settlements. Blockchain and bitcoin represent the new ruling class of netocrats (net – a network, from the Greek kratos – power, domination), which uses internet networks and blockchain technology for power. Values in netocracy and bitcoin environment are network structure; exclusivity; inaccessibility of ownership and technology of trans-management for the general public; information and knowledge as a fundamental value; emission and control of money; withdrawal from the supervision of national governments. Bitcoin is a technological solution to the anonymous functioning of money. However, it is impossible to consider the problem of the functioning of money in the sphere of information technologies only. The issuance of money must be closely linked to the real economy and be a precondition for its development, and not an instrument for increasing speculative operations and criminal activities. That is, we consider it alogical to suggest bitcoin or other crippling goods as an alternative to the modern national currency or world currency. It is needed to look for those model and algorithms of emission and operation of money that take into account the development of the socio-economic system, the real economy, both at the macro- and mega-level. The introduction of blockchain technologies and peering cryptocurrency, such as bitcoin, in the existing model of the Ukrainian economy “robber hand of the free market” will not change the socio-economic situation in Ukraine.
Authors and Affiliations
O. S. Oleksiuk, O. V. Mostipaka
Keywords
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