Cryptocurrencies: Economic Innovation and Challenges

Abstract

The rise of cryptocurrencies marks a profound shift in the global economic landscape, challenging traditional financial systems with a decentralized digital currency model. This review article explores the technological advancements and economic implications of cryptocurrencies such as Bitcoin, Ethereum, and newer alternatives. It delves into their potential to disrupt conventional banking, influence global transactions, and reshape monetary policies. Furthermore, the review addresses the regulatory challenges these digital currencies face, highlighting the legal frameworks and security concerns associated with their adoption. This article also discusses the environmental impact of cryptocurrency mining and evaluates future prospects, including the integration of cryptocurrencies with traditional financial systems and emerging trends like Central Bank Digital Currencies and asset tokenization.