The article analyzes the changes taking place in the investment market due to the emergence of innovative blockchain technology and cryptocurrencies, which are increasingly used as alternative investments in the management of a securities portfolio, along with traditional types of financial assets, such as money, bonds and shares. The methodological basis of the study is a dialectical approach that provides an understanding of the interdependence of technological changes and the rethinking of the role of fractional, decentralized, fluid assets with lower settlement risk, which are digital assets, in comparison with the traditional payment system in fiat currencies. The available current sample period of the cryptocurrency Index (CRIX) is too small to fully explore the investment opportunities of cryptocurrencies. In addition, the evaluation of cryptocurrencies is very different from the evaluation of traditional investment tools. There is also no clarity on the development of blockchain technology in the long term. At the same time, even today, the success of several cryptocurrencies (in particular, bitcoin) exerts competitive pressure on transaction methods from existing financial institutions [1], which determines the need for forecasting and analyzing price movements in the cryptocurrency markets. The article offers a sequence of actions for evaluating the profitability of investments on the example of bitcoin.
Modern digital innovation technologies, such as blockchain, artificial intelligence and social networks,<br> combined with methods of data collection and processing, represent new opportunities at several<br> levels of economic relations. In the context of digitalization of the economy, new forms of cooperation<br> are becoming relevant with a simultaneous reduction in the role of intermediaries. Increasing the<br> number of electronic communication devices will lead to the creation of new forms of cooperation,<br> where borders and distances will not be an obstacle to combine human efforts and resources,<br> while increasing information exchange and strengthening data quality requirements. Decentralized<br> autonomous organizations (hereinafter – DAO) are becoming a reliable and effective substitute for<br> the institution of economic mediation and traditional forms of commercial cooperation. Despite the<br> attractive optimization of a number of processes due to digital freedom and the absence of bureaucracy,<br> a number of issues related to protocol security, legal uncertainty and the temporary complexity of the<br> internal mechanism remain unresolved.<br> The capabilities of blockchain technology for working with digital data provide opportunities for a<br> new type of economic cooperation, where through smart contracts, as a structural part of DAO, a<br> transparent, efficient, fair and democratic system of cooperation is achieved.<br> In this article, we offer an overview of DAO technology as a digital collaboration for big data, focusing<br> on current approaches, opportunities and future directions. A brief overview of blockchain and DAO<br> technology and their necessary characteristics for working with big data, various DAO services for<br> data collection, storage, analysis and confidentiality, use of such data, as well as problems and future directions for further research. Blockchain technologies have the potential for effective big data<br> analytics through enhanced security and privacy, an effective management system, with ideas fully<br> protected by blockchain, and joint investment and control of such digital assets through a DAO as a<br> new form of cooperation.
О. І. Baranovskyi, Мykhailo Kuzheliev, Dmytro Zherlitsyn, Kostyantyn Serdyukov · 5 authors
Abstract. The first cryptocurrency was born in 2008. Already today, virtual financial assets and tokens are a significant part of trading in global financial markets. The cryptocurrency market capitalization currently exceeds 600 billion U.S. dollars. However, there is a lot of discussion about cryptocurrency functions and the correlation between Bitcoin prices and the basic economic indices. Therefore, the purpose of the paper is to define the statistical substantiation of the influence of fundamental economic indicators on the market of virtual financial assets and the possibility of using cryptocurrency as the investment assets. This article is based on the theoretical principles and methods of econometric analysis; the system approach methods to define the main vehicles and trends of the international financial market. The study presents correlation analysis, regression models with paired and multiple variables. For these models, R-Studio instruments are the main tools of quality estimation and results interpretation. The article shows the results of the correlation analysis of Bitcoin’s U.S. dollar price dynamics and changes in the main stock, monetary market indicators, cryptocurrencies market tendency, levels of the United States fundamental economic indicators for the period from 2014 to 2021. Traditional multifactorial regression models are used to determine the level and the impact of individual indicators of the world stock market at the U.S. dollar price of Bitcoin. A comparison of the level of volatility of key investment financial assets in the market of cryptocurrencies and stock markets is carried out. The authors determine the level of correlation dependence and make a regression model of the impact of fundamental economic indicators and stock market trends on the dynamics of U.S. dollar prices for key cryptocurrencies. The article presents conclusions on trends and problems of using cryptocurrencies as an investment asset, considering volatility and profitability. Implementation of the results allows to clarify the economic essence of cryptocurrencies as a specific financial vehicle, as well as improving the existing models of investment management, considering the statistical characteristics of the virtual financial assets. The main direction of further research is to build models of medium-term prediction of prices for the main cryptocurrencies as an investment asset in conditions of changes in global financial markets, which must consider the fundamental economic indicators of the world economy and trends on key stock and commodity markets. Keywords: virtual financial asset, cryptocurrency, bitcoin, econometric model, financial market, economic indicator, investment asset. JEL Classification D53, E44, G15, C58 Formulas: 3; fig.: 3; tabl.: 3; bibl.: 31.
The article discusses the main technological and economic aspects of the functioning of cryptocurrencies. Based on the analysis of monetary theories and the evolution of forms of money, it is shown that the technologies of mining and circulation of cryptocurrencies fully meet the requirements for "monetary material" and the trend in the development of monetary systems. It is concluded that the development of the form of money under the influence of scientific and technological progress has not changed their economic essence. The pros and cons of cryptocurrencies are shown. The problem of the legitimacy of cryptocurrencies is analyzed taking into account the new federal legislation.
Vladyslav Tipanov, О. В. Драчов, Світлана Ткаленко, Tetiana Mirzodaieva · 5 authors
Abstract. The essence of cryptocurrencies is considered and the definition of their legal status is offered. The experience of some jurisdictions regarding the opportunities and threats of using and regulating cryptocurrencies has been studied. The authors analyzed the cryptocurrency market. The factors that led to the widespread use of cryptocurrency, which include financial instability, significant currency fluctuations, limiting capital flows and inflation of the currency in the country. The problem of information protection using blockchain technology, which is solved by a combination of block design and cryptographic protection, is considered. The capitalization of TOP cryptocurrencies for the last three years is analyzed, among which the leading ones are Bitcoin (VTS), Ethereum (ETH), Tether (USDT) and others. Identified issues that need to be addressed in the field of finance and legal regulation. In the process of analyzing the experience of regulating cryptocurrency, we have found similar and distinctive features in some jurisdictions. First, each country, in view of the great potential of the blockchain technology, is trying in one way or another to create a favorable climate for its development. Secondly, the use of cryptocurrency goods is rapidly developing, and their impact on economic processes, both at the international and national levels is increasing, while states are faced with the problem of adapting their tax legislation to the current challenges of the digital economy, since the definition of the status of cryptocurrency does not directly lead to lack of funds to the state budget from operations with these assets. Thirdly, today there are more than 2,000 cryptocurrencies is traded through various trading platforms — stock exchanges and can be used to launder proceeds from crime. Thus, it is necessary to develop common standards for the regulation of cryptocurrency and the requirements for such crypto exchange counterparts, through the licensing of operations with cryptocurrencies. At the same time, the important question is what government bodies should exercise such control. Keywords: technology blockchain, cryptocurrency, virtual currency, legal regulation of cryptocurrencies, state functions, cryptocurrencies taxation. JEL classіfіcatіon F01, F20, K33, K34 Formulas: 0; fig.: 0; tabl.: 1; bibl.: 23.
The dynamics and structure of the revenue side of the state budget of the USSR in the period from 1950 to 1989 are considered on the basis of official statistical collections published by the Ministry of Finance of the USSR. It is stated that the dynamics of the revenues of the state budget of the USSR during the entire studied period was positive. There was a constant increase in income, which had an average annual value of about 6,5 % in relation to the previous year, which made it possible to increase the budget by more than one third in almost every five-year period. It is indicated that in just the period under study, the revenue side of the state budget in-creased by 11,6 times. The author comes to the conclusion that the historical dynamics of the distribution of incomes between the budgets of different levels testifies to the growing tendency towards the decentralization of the Soviet economy. It was revealed that this trend looks less unambiguous if we trace the change in the share of revenues of the republican and local budgets in the structure of the USSR state budget. It is shown that the most important deterrent to the decentralization of the Soviet economy was budget regulation, which allowed the state, on the one hand, to withdraw to the budget most of the profits of the socialist economy, and on the other, to keep the budgetary resources of local authorities under control.
Objective: to consider the digital currency of Central Banks as the third form of money of a state; to identify advantages and disadvantages of this new form of money; to clarify the classification of digital currency of the Central Bank; to analyze the features of infrastructure development of the Central banks fast payments system and private stable coins market; to present the author’s conception of the Bank of Russia digital ruble.Methods: the article uses empirical, historical, logical, country-oriented, comparative and statistical methods of the system approach, which allow studying the possible designs of the Central Bank digital currency in dynamics.Results: the article reveals the macroeconomic factors of the emergence of the Central Bank digital currency; defines the types of classification of the Central Bank digital currency; shows the possible pros and cons of issuing and circulating of the third form of state money; considers the fast payments system and the private stable coins market; clarifies some consequences for monetary and financial stability policy during the transition of the Central Bank to digital currency; shows the advantages and disadvantages of the Central Bank digital currency through the prism of three aspects: the anonymity level, the confidentiality degree and the guaranteed remuneration for market participants; and analyzes the features of the Bank of Russia digital ruble development in the medium term.Scientific novelty: the article shows that the Central Bank digital currency is just the third form of state money, along with cash and non-cash; classification of digital currency has allowed the Central Bank to identify the features of the possible design of digital currency; the prospects and problems of price and financial stability in terms of the circulation of digital currency are considered; an alternative to the Central Banks digital currency is the system of fast payments and private stable coins market; The Bank of Russia should build the digital ruble design on the basic characteristics of the banking system of the Russian Federation (Model D) and the mechanisms combining the technologies of the centralized and distributed ledgers of the Bank of Russia. Practical significance: the main provisions and conclusions of the article can be used to develop a possible design of the digital ruble in the medium term, as well as to clarify the Bank of Russia current target mandates, tools, channels and mechanisms of monetary and financial stability policy, directly related to new trends in the development of both the world economy in general and the Russian economy in particular.
This study was conducted to evaluate the implementation of an open innovation cryptocurrency financial system using a statistical approach. The data array reflects the actual speed of the cryptocurrency system, expressed in transactions per second (TPS), taken as the average annual speed. The article offers a comprehensive approach for choosing the optimal cryptocurrency financial system. The final analysis shows that the reasons for the adoption of the cryptocurrency financial system are practicality and convenience, as well as efficient transaction time, faster payment, and simplicity of the payment process. The impact of social factors, expected efforts, and conditions of assistance on the attitude to the cryptocurrency financial system were evaluated. In addition, social factors that have a significant impact on the implementation of the cryptocurrency financial system were identified.
Currently, there are a great number of platform-projects and frameworks based on blockchain technology. Consequently, it is necessary to define the most relevant blockchain platforms and analyze them taking into consideration a variety of features. Also, there is a need to investigate the logistics growth and the price of Bitcoin on the Binance cryptocurrency exchange. The authors have examined modern technologies used by manufacturing companies in the field of fintech in the context of the 2019-2024 period. The results show that sensors and automatic identification take the leading position both at present and in 2024. Aartificial intelligence and blockchain are also in demand by manufacturers today, however in the nearest future their ranking positions will increase sixfold from 10% to 60%. In the current paper the authors review the largest companies that effectively use blockchain technology in their businesses. The conducted survey shows that 18% of companies use blockchain technology based on Bitcoin. The authors have analysed a number of Bitcoin transactions for the period from January 2017 to February 2021 and concluded that the COVID-19 pandemic has had a favourable effect on the indicator data. A maximum number of transactions equal to 10.15 million was carried out in July 2020. Using the method of the Ordinary Least Squares (OLS) and statistical estimation methods the authors have revealed an underestimation of the equilibrium state of the empirical distribution of price data and the volume of daily trading of Bitcoin on the Binance cryptocurrency exchange through the channel of the right-hand confidence interval. The blockchain technology based on Bitcoin has positively reacted to the macroeconomic factors such as the COVID-19 pandemics and further growth in Bitcoin transactions is expected. With the help of economic modelling, the authors have defined the predictable volume and the price of Bitcoin on the Binance cryptocurrency exchange.
This paper draws the concept of the decentralized autonomous organizations (DAO) as new opportunities for digital economy and new form of digital cooperation with economic potential of DAO, as well as reveals the main problems and risks associated with functioning of DAO. Quick development of technology and digitalization of society, increase in the number of modern electronic devices will lead to new forms of cooperation, where borders and distances will not be an obstacle to combining human efforts and resources. One of the forms of such cooperation should be DAO as a reliable and effective substitute for the institution of economic mediation and traditional legal forms. Despite the attractive optimization of a number of processes due to digital freedom and low bureaucracy, a number of issues related to protocol security, legal uncertainty and temporary complexity of the internal mechanism remain unresolved. Modern blockchain technology is becoming a platform for capital formation, where cryptocurrencies and digital assets can be moved directly within DAO itself or with another compatible DAO. That allows the creation of organizations in which participants maintain direct real-time control of contributed funds where the governance rules are formalized, automated and enforced using software. While DAOs have been discussed and experimented with for the last five years, only now have they become the logical extension of the capital formation piece. The opportunities ahead will be in the formation of new types of organizations based around the interactions between digital stake holders and decentralized governance. Despite the potential that DAOs present, they face challenges from legal, governance and security perspectives. We are convinced that new forms of economic cooperation based on blockchain and DAO technologies may open up shortcomings in the near future, and we know how to implement them in national platforms adapted to modern legislation that promotes economic progress and global cooperation. Also we believe that DAO should become a separate economic system based on the idea of Seconomics end Robonomics, where the digital economy is seen as an integral part of CyberSecurity.
One of the leading technologies nowadays, which is extremely helpful for the tokenization process is Blockchain. Combining Blockchain technology with the tokenization process creates a digital economy based on values rather than speculative demand. Therefore, we can say that tokenization leads us to a new era of global investment with minimal risks and high volatility. Tokens, which are specific objects that reflect the real values (such as money, stocks, credit card numbers, medical records, etc.), provide new investment opportunities and open up new areas for investment and trading. However, no single token classification system has yet been introduced that would help to clearly differentiate the functionality of each type of token for further use in different areas. The leading by popularity division of all crypto assets can be described within the three main groups: Payment, Utility, and Security tokens. This article offers a more detailed review of each of these groups and highlights the features of each of them.
Oksana Rumiantsava, Svetlana Osmolovez, И. Н. Рабыко, Marina Markusenka
The relevance of the emission of digital currency by central banks is due to the proliferation of virtual assets, an increase in the share of non-cash payments, and the rapid development of the fintech sector. Monetary regulators are studying the possibilities of issuing their own digital currency in order to make the most of the capabilities of distributed ledger systems in realizing their goals and objectives. The controversial nature of the issue of digital currency emission by the central bank necessitates additional research on this topic due to the uncertainty of the legal and economic status of virtual assets, problems that may arise during the implementation of monetary policy, and the economic feasibility of introducing such a project at the present stage. The article examines the prerequisites for the emergence of projects of the central bank digital currency (CBDC), the emission model of CBDC, the risks of its practical implementation.
Digitalization of the petrochemical complex is focused on the use and creation of end-to-end technologies, such as distributed ledger systems, advanced manufacturing technologies, industrial Internet, Internet of Things, and big data. These technologies are now sufficiently advanced to integrate with the main production processes of petrochemical enterprises for the digital transformation of operations and the provision of "smart" supply chains, as well as the development and implementation of new business models. Smart manufacturing is a new paradigm that provides speed and flexibility through the introduction of digital innovations that create a circular economy model, facilitating the use of solutions such as digital platforms, smart devices, and artificial intelligence that contribute to resource optimization. The article deals with the issues of personnel support for petrochemical enterprises that contribute to improving production efficiency in the digital economy. Integrating human resource management into the strategic planning process allows you to create and develop the necessary skills and competencies to achieve effective results, opportunities and competitive advantages. The introduction of more efficient and faster production systems and innovative technologies allows you to reduce production processes, accelerate the entry of new products and services to the market, as well as the associated delivery times, reduce production stages and increase the ability to differentiate products.
Hanna Kucherova, Vita Los, Dmytro Ocheretin, Olha Bilska · 5 authors
The relevance of the research subject is explained by a fundamental change in the conditions of existence and development of agents of the digital economy, limited knowledge about their behavior under conditions of quarantine restrictions. The aim of the research is to study the series of the dynamics of the price of bitcoin and the frequency of online requests for bitcoin as an indicator of the behavior of agents of the digital economy using the methods of qualitative recurrent analysis. The types of constructed time series plots of the price of bitcoin and the frequency of requests for bitcoin are defined as drift with a superimposed linearly gradually increasing sequence, which indicates the unpredictability of the behavior of digital economy agents with a gradual stabilization in new quality trend. The scientific novelty of the research results lies in the proven connection between the series of bitcoin price dynamics and the frequency of online requests for bitcoin, tracking changes in the behavior of digital economy agents before and after the introduction of quarantine restrictions. The procedure for conducting a qualitative recurrence analysis of the series of dynamics is generalized, which takes into account the specifics of the formation of the frequency of online requests for bitcoin, the price and the behavioral aspect of its formation. The practical value lies in defining the characterization of the behavior model of digital economy agents under conditions of quarantine restrictions. The behavior of digital economy agents in the context of COVID-2019 requires further research, in particular, using cross-recurrent analysis methods.
Received 28.07.2020. The article examines issues related to the introduction of central bank digital currencies (CBDC) for retail payments and wholesale settlements. The study defines and classifies central bank digital currencies, researches the main models of CBDC systems. The article also analyzes the features of various national projects for issuing Central bank digital currencies. The paper uses methods of economic-statistical and functional-structural analysis. The study concludes that CBDC are a new form of central bank money. Digital currencies can be issued in various issuing systems for the purpose of retail payments or wholesale settlements. Among the models of CBDC systems for retail payments (R-CBDC) the direct system model is the most attractive for its simplicity. This model eliminates the dependence of the Central bank on any financial and payment intermediaries. Models of synthetic and hybrid R-CBDC systems are characterized by reliability and speed in processing multiple transactions which makes them the most promising for implementation. Among the models of CBDC systems for wholesale payments (W-CBDC) the model of the system with a universal digital currency (U-W-CBDC) may be the most suitable for eliminating the main disadvantages of modern cross-border payment systems. However, a large number of technological and financial changes as well as the high operating costs of the U-W-CBDC can make such systems difficult to implement for non-developed financial market infrastructure countries. National financial regulators have different motivations for issuing digital currencies. The main advantages of digital currencies for retail payments may consist in providing users with highly liquid, low-risk, universally available means of payment. The main advantages of wholesale digital currencies are that they offer faster, safer, cheaper cross-border payments. The most advanced projects for issuing R-CBDC can be considered DCEP (People’s Bank of China) E-krona (Central Bank of Sweden). The most successful pilot projects for issuing W-CBDC are the projects Jasper (Central Bank of Canada) and Ubin (Monetary Authority of Singapore), which were able to achieve interoperability in conducting cross-border payments. Currently most CBDC are retail based on the use of distributed ledger technology and implemented in the form of DLT-tokens. Countries that develop digital currency systems can be divided into three groups. The first group is countries where the introduction of CBDC can be designed to support the national demand for central bank money (Sweden, Norway, Singapore, etc.). The second group – countries for which the adoption of digital currencies can afford to keep the place of national currencies in international settlements (USA and EU) or expanding the use of national currencies at the international level (China). The third group represents countries for which the introduction of digital currencies may be associated with the control of national monetary circulation and de-dollarization of the financial system (Uruguay, South Africa, Cambodia, etc.).
The authors analyzed the market of cryptocurrency goods, considered the essence of cryptocurrency and proposed the definition of their legal status, studied the experience of some jurisdictions regarding the possibilities and threats of the use and regulation of cryptocurrency.In the process of analyzing the experience of regulating cryptocurrency, we have found similar and distinctive features in some jurisdictions.First, each country, in view of the great potential of the blockchain technology, is trying in one way or another to create a favorable climate for its development.Secondly, the use of cryptocurrency goods is rapidly developing, and their impact on economic processes, both at the international and national levels is increasing, while states are faced with the problem of adapting their tax legislation to the current challenges of the digital economy, since the definition of the status of cryptocurrency does not directly lead to lack of funds to the state budget from operations with these assets.Thirdly, today there are more than 2,000 cryptocurrency is traded through various trading platforms -stock exchanges and can be used to launder proceeds from crime.Thus, it is necessary to develop common standards for the regulation of cryptocurrency and the requirements for such crypto exchange counterparts, through the licensing of operations with cryptocurrencies.At the same time, the important question is what government bodies should exercise such control.
Today, everything in the world is changing rapidly; businesses that ten years ago may not have existed at all now exist and bring with them a significant income. Change in almost every field has one key feature: it is digitalisation. There are innovations in payment methods as well; the most high-profile issue in recent years in this regard is the emergence of cryptocurrencies. Within a few years of its appearance, it has become popular not even locally but worldwide. The method of data processing and analysis, quantitative and qualitative research methods, statistical-economic analysis methods are mainly used when working on the paper. The research aims to identify the main directions of cryptocurrency development in globalisation threats and challenges. Most cryptocurrencies are built on blockchain technology. The technology of the future is designed to securely store information, expedite transactions, reduce international transaction costs, replace cb-money with e-money and eliminate intermediary circles.
Seryozha E. Melkonyan, Natali A. Galoyan, Anna Norkina, Pavel Y. Leonov
The article reveals problems in the trade between EAEU countries, proposing the solution. Such processes as globalization and digitalization are caused by the technological advance influencing trade among EAEU countries. Some of the problems have been identified relatively recently, and some have been discovered long time ago, however, they have not found a proper solution. The existing shortcomings in the activities of the EAEU pose a significant threat to the security of the member States. The authors of the article stress the solution to the current problems faced by members of EAEU, offering the implementation of blockchain technologies. New model of trading platform, from the authors’ stand point, will allow member States to solve current problems and to prevent illegal actions.
This article is an enhancement of the chapter “About Digital Avatars for Control in Virtual Industries” in the book Big Data and Knowledge Sharing in Virtual Organizations. The article discusses the capabilities of the R language for modeling Levy processes that currently most closely correspond to the nature of the organizational learning movements in sliding mode. The efficient algorithm of the CGMY process simulation as a difference of the tempered stable independent Levy is processed and programmed at R language. The efficient algorithm of variance gamma process simulation using variance gamma random variables is processed and programmed at R language. Overview of CGMY process simulation in practice is use for human capital management in the context of the implementation of digital intelligent decision support systems and knowledge management and for digital intelligent design of avatar-based control with application to human capital management.
Authors research the current problem of innovative development — digitalization of financial assets. They review the key aspects of organizing the information system operator using the distributed ledger technology. The main imperative requirements of the legislation for operators of the information system are highlighted. The main alternatives of IT-infrastructure creation are considered. Also the matters of operational risks management and organizational and economic efficiency of activities are revealed.
Nov 8, 2020·CEUR Workshop Proceedings, Vol-2732: Proceedings of the 16th International Conference on ICT in Education, Research and Industrial Applications. Integration, Harmonization and Knowledge Transfer. Volume II: Workshops
Hanna Kucherova, Dmytro Ocheretin, Vita Los, Natalia Venherska
Research goals and objectives: to study the series of dynamics of the frequency of requests and the price of bitcoin under the conditions of taking into account the risks of using various forecasting methods. Subject of research: proof of importance of the role, statistical dependence and interdependence of the series of dynamics of the price of bitcoin and the frequency of its online requests. Research methods used: analytical methods, econometric models, nonlinear dynamics methods. Results of the research: The research grounded the approach and the forecasting procedure for the series of dynamics of the price of bitcoin and the frequency of its online requests, which in essence correspond to the basic principles of the implementation of the forecasting methodology, take into account the specifics of the formation of the frequency of online requests for bitcoin prices and the socio-economic meaning of its functioning. The practical value consists in determining that the minimum risks for the study of a time series dynamics of bitcoin price and frequency of requests for bitcoin price were demonstrated by the neural network methodology in comparison with the use of the ARIMA model and other methods of economic and mathematical modeling that proves the proposed methodology for determining the direction of the trend outside the study period.
The article explores the dialectic of determining the legal status of cryptocurrencies. Digital technologies are considered specifically for their application in the financial sector. The features of the use of digital technologies in various countries of the world are analyzed. Due to the variability of the legal regulation of digital technologies, the complex nature of their implementation is noted, which is not reduced to a simultaneous behavioral act. It is concluded that there is no universal way to sell cryptocurrencies in the financial market. The analysis of existing scientific approaches to understanding the concept of cryptocurrency, bitcoin is carried out. The article examines the digital technologies used in the financial sector, which include virtual currencies and — like their kind of cryptocurrency. The cryptocurrency status is not defined, however, there is the prospect of normative fixing it on the territory of the Russian Federation.
The article presents an analysis of the current level of financial literacy of young people in cryptocurrency. Purpose of work: revealing of the main problems connected with low growth of activity of youth in the market of cryptovoltaic currency. Identification and comparison of the main risks and opportunities on the cryptocurrency market are defined as priorities. In the article the methods of interrogation, the comparative analysis, deductive and inductive conclusions are resulted, and also construction of theoretical model of the relation of a society of the cryptocurrency by means of writing of conclusions and recommendations to this question is made. It was concluded that the low level of financial literacy of young people in the cryptocurrency is largely due to the government's passive policy in this direction, as well as the myths and illusions surrounding the cryptocurrency. There is direct connection between the level of readiness of citizens to invest their money in cryptocurrency and the level of innovation of the state economy.
Umar Aptievich Bachaev, Eliza Aptievna Abdulazizova
This article reveals the economic content of the cryptocurrency, which has recently become widely known and spread. The system of direct payments was a response to the global financial crisis, the consequences of which have shaken the financial system of many countries. The authors analyze the scientific achievements of foreign and domestic scientists, which allows to identify a number of advantages and disadvantages of the new currency based on information. Along with the technological superiority in this direction, there are still questions concerning methodological, methodological and legal components of the cryptocurrency. Bitcoin is characterized by decentralization: a special program code regulates the work of the network members, as well as the schedule of emission, which is limited in itself, because the generation of coins is closed and the number of PTSs is constant. The introduction of cryptocurrency has a number of other positive effects: irreversible transactions, low transfer fees, complete isolation of the currency from inflation, etc. At the same time, the cryptocurrency has negative consequences. For example, the inability to track remittances and the vulnerability of the system create the preconditions for illegal operations: money laundering, capital flight, terrorism, etc. Another negative feature of the cryptocurrency is its dependence on supply and demand. Thus, the legal status of the cryptocurrency in many countries, including Russia, is not fully defined due to its ambiguous attitude. However, it should be admitted that its appearance on the world market is a phenomenon that in theory can fundamentally change the existing financial system.