Cryptocurrencies as the Future of Money: Theoretical Aspects, Blockchain Technology and Origins of Cryptocurrencies

Marta Ciarko (), Greta Poszwa (), Agnieszka Paluch-Dybek () and Mustafa Caner Timur ()
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Marta Ciarko: Stanislaw Staszic State University of Applied Sciences in Pila, Pila, Poland
Greta Poszwa: Stanislaw Staszic State University of Applied Sciences in Piła, Pila, Poland
Agnieszka Paluch-Dybek: The Jacob of Paradise University, Gorzow Wielkopolski, Poland
Mustafa Caner Timur: Ardahan University, Ardahan, Turkey

Virtual Economics, 2023, vol. 6, issue 3, 70-93

Abstract: During times of technological development, many aspects of everyday activities have been digitalized while traditional forms of payments have stepped back in the name of more innovative methods such as cryptocurrencies. This article focuses on analysing the emergence, functionality, and future role of cryptocurrencies, particularly Bitcoin. By interpreting the theoretical aspects of money, the emergence of cryptocurrencies, and blockchain technology, the authors tried to determine whether cryptocurrencies have the potential to become the money of the future. In the article, the analysis of cryptocurrencies’ functioning in the modern world focuses on the role of technological development and innovations in their use and popularity. SWOT and speculative analyses of cryptocurrencies, which have been touted as the money of the future, were also carried out. The results obtained from the research show that cryptocurrencies have many advantages over traditional payment methods. Elimination of intermediaries, low transaction costs, safe storage of data, limited increase in monetary supply, globalization, and privacy are stated as the most important of these opportunities. In addition, energy use, inaccessibility without the internet, high volatility, and cyber-attacks were seen as the most important threats and weaknesses. When developments in the world follow, it can be seen that there are many blockchain-based opportunities or threats. Despite this, blockchain technology offers great opportunities. As a result, countries and individuals should turn to this technology now to benefit more in the future. At this point, it is very important for all other educational institutions, especially universities, to implement educational programs that will meet the needs of the age.

Keywords: blockchain; digitalization; economy; cryptocurrency; bitcoin; exchange tools. (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:aid:journl:v:6:y:2023:i:3:p:70-93

DOI: 10.34021/ve.2023.06.03(5)

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