The Advantages and Risks of Using Cryptocurrency in the Modern Digital Economy

Abstract

The article is concerned with actual issues of virtual money functioning in the global and national financial markets. The article is aimed at researching the main advantages and disadvantages of cryptocurrency, as well as its role in the modern economy on the basis of analysis of the cryptocurrency market development in Ukraine and world-wide. It is determined that today there is no generally recognized definition of cryptocurrency in connection with the complexity and innovativeness of this economic phenomenon. The specific signs of cryptocurrency, which determine the advantages of their use for investors, are analyzed. At the same time, the presence of risks of legal, economic and technological nature is emphasized. The further prospects of use of cryptocurrency in conditions of development of the digital economy are substantiated, and also the necessity of legal and market institutionalization of cryptocurrency sphere is considered.

Keywords

• digital economy
• cryptocurrency
• virtual currency
• bitcoin
• mining
• blockchain