Cryptocurrencies as an Example of Innovation in Finance

Abstract

The paper contains theoretical considerations on cryptocurrencies in the context of innovation and specifically focuses on the most popular cryptocurrency – bitcoin (BTC). Based on critical analysis of domestic and foreign writings, bitcoin was classified as a modular innovation despite some of its features suggesting the continuous and breakthrough nature of the solution. The conclusion helped positively validate the research hypothesis proposed in this paper according to which cryptocurrencies, despite their characteristics of an incremental and breakthrough innovation, can be treated as modular innovations.