CRYPTOCURRENCY: TOOL OF SHADOW SCHEMES OR MONETARY SYSTEM OF A FREE SOCIETY?

Abstract

In this article an attempt of analysis of peculiarities of the market of crypto currency is carried out, peculiarities of peer payment systems such as Bitcoin, Namecoin, Litecoin, PPCoin, Novacoin are analyzed. Attitude to crypto currency in the modern world is ambiguous, due to the pseudo anonymity of crypto currency the use of crypto currency may have fraudulent schemes, may be used for financing shadow sector, including terrorism and drug trafficking. Author explores possible links of crypto currency and shadow economy, highlights the main distinguishing characteristics of crypto currency and payment schemes with their use, the analysis of pros and cons of presence of competitive money in the economic cycle of the country is carried out.