Peculiarities of cryptocurrency functioning

Lesia Ishchuk and Viktoria Ishchuk

E-Forum Working Papers, 2023, vol. 13, issue 4, 175-182

Abstract: The article points out the prevalence of cryptocurrencies in modern society and explores the peculiarities of their use. The systematization of literary sources, foreign experience and market data shows that there is a debate and certain differences in the understanding and interpretation of the essence of cryptocurrency, which affects its introduction into business activities and use by citizens both at the legislative level and by the financial system. The urgency of solving this problem lies in the fact that the state must respond quickly to changes in society and adapt to them, preventing negative consequences, first of all, for the state itself, as well as for ordinary citizens. The methodological basis of the study is the use of methods of analysis, synthesis, theoretical generalization, economic and statistical methods. The article identifies the main features of cryptocurrency as a phenomenon and ways of its use. The expediency of its introduction into legal circulation is substantiated. The negative aspects that harm the financial system of the state and the factors that help the latter to develop are highlighted. Foreign experience of regulating the use of cryptocurrency and its taxation is presented, which has a positive impact on the legal and financial spheres of state activity. Given the identified weaknesses and strengths of cryptocurrencies, the threats to the use of cryptocurrencies and further opportunities for it are formulated. The article examines the current state of development of the cryptocurrency market and compares it with the market of 2017: the price, market capitalization and percentage of the total market capitalization of cryptocurrencies are analyzed. The article lists possible investment activities related to cryptocurrency. The impact of cryptocurrencies on the environment is studied. The necessity of state intervention in regulating the circulation of cryptocurrencies is indicated, finding options for overcoming the consequences of the weaknesses of cryptocurrencies

Keywords: currency; cryptocurrency; financial instrument; taxation; investment (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:cuc:eforum:v:13:y:2023:i:4:p:175-182

DOI: 10.62763/cb/4.2023.175

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