Pavel Baboshkin, Alexey Mikhaylov, Zaffar Ahmed Shaikh
Due to the youth of the cryptocurrency sphere, the logic of interaction between investors, users and protocols is not always precisely defined. Analysis of the impact of ESG on cryptocurrencies proves that the demand for bitcoin network capacity (occupies the main market share) is the main factor in predicting the price of this cryptocurrency and the cryptocurrency market as a whole. The choice of the statistical method of analysis is determined by the purpose of statistically justified determination of the relationship of the data under consideration, and the reliability of the analysis is checked using Fischer and Student tests. In this paper, several innovations are proposed to solve the problem of energy dependence of cryptocurrencies: firstly, the analysis of cryptocurrencies in the paradigm of sustainable development (taking into account the consumption of a huge amount of energy for the functioning of cryptocurrency systems); secondly, feedback logic to explain the interaction of subjects, including the following parties: users, developers, network infrastructure and their interaction; thirdly, statistical analysis with the creation of artificial variables from real data and iterative improvement of the model. This paper proves that sustainable cryptocurrency growth is impossible when viewed from the perspective of “Green Economics” by Molly Scott Cato. The author's approach is relevant compared to other methods of linear transformations for creating artificial variables by selecting data using the VIF test. As a result, several versions of models were obtained using various combinations of the initially proposed factors, on the basis of which the nature of the greatest influence on the price of bitcoin was established in the form of technical factors and energy infrastructure needs.
The paper investigates the empirical verification of the efficacy of investment diversification using the main stock exchange indices in the Eurozone countries and Bitcoin. The paper also investigates whether and to what extent it is desirable for institutional investors, in addition to traditional financial instruments, to invest in Bitcoin. The aim of the research is to examine whether it is justified and to what extent to include Bitcoin in the portfolio of an institutional investor. Through this research, an attempt is made to find an answer to the research question: “What share of Bitcoin in the portfolio structure is justified, taking into account the ratio of return and risk”? The analysis includes data on the daily movement of selected action indices as well as the movement of Bitcoin. The methodology involves the analysis of high-frequency data, given that daily trading data were used. The results show that it is justified to include Bitcoin in the portfolio structure. Also, the results show which share of Bitcoin in the portfolio is justified from the aspect of institutional investors. The data used in the analysis cover the period from 2019 and 2020. Two portfolios have been created, one without Bitcoin and the other with Bitcoin. The goal in optimization for both portfolios is to minimize risk. The observed period of the analysis is characterized by the crisis caused by the coronary virus pandemic and the period of active bitcoin trading. The results of the research show that Bitcoin is a good source of diversification in a portfolio that contains traditional financial instruments, both for an investor who is not prone to risk, and for those investors who have a greater appetite for risk. The conclusion is that the rational behavior of institutional investors requires consideration of investing in Bitcoin using the Markowitz model. However, given the high degree of volatility, investors should be careful when making decisions about including Bitcoin in their investment portfolio. Bitcoin is an extremely volatile instrument. Given that it is a speculative and highly volatile financial instrument, investors have different views on Bitcoin. First in terms of defining this cryptocurrency and then in terms of including this instrument in the investment portfolio. By including Bitcoin in the investment portfolio, the goal of diversification has been achieved. This is to reduce the risk of the institutional investor to a minimum. In practice, this means that it is possible to create a portfolio that carries an acceptable level of risk with the desired level of return. Given that Bitcoin is an extremely volatile and consequently - risky instrument, the expected return is also - high. The results of the research show that the cryptocurrency Bitcoin can serve as a desirable instrument for diversification of the investment portfolio when looking at a portfolio that includes stock indices. The results suggest that it is desirable to include in the structure of the portfolio a certain share of Bitcoin, about 6%.
The article considers the main factors that have a positive effect on the quantity demanded for cryptocurrency, and information is the primary one. The authors separately consider the use of Bitcoin throughout 2020 as the leading cryptocurrency on the market. The position of the direct dependence of the value of other cryptocurrencies on the behavior of Bitcoin is given. The study shows that in the modern world, cryptocurrency is not only an investment tool but also a payment instrument which gathers momentum. This is evidenced by the annual expansion of the use of cryptocurrency in the market for goods, works and services. Despite the increasing demand for cryptocurrencies, the problem of infrastructure formation remains open. In modern times, cryptocurrency exchanges appear to be a key element of the infrastructure of the cryptocurrency market, their functioning cannot be stabilized in individual states, which leads to the formation of a shadow cryptocurrency market. A significant aspect of the functioning of cryptocurrencies is the difference in the key factors affecting the cryptocurrency market and the securities market. For the first market such a factor is information, for the second – financial position of the issuer of the securities. It shows investors the difference between these segments of the financial market. In the future, with the participation of all elements of the cryptocurrency market, it is possible to form a balanced system that will function steadily under the influence of external factors.
Viktor Bogachev, Mikhail Gorenburgov, Galina Sologubova
A pragmatic approach to building market institutions is to select mechanisms that operate in a real non-congruent world, currently seeking to virtualize everything that can exist digitally and offer consumer value. The instrumental and infrastructural nature of digital products determines their ability to cross-pollinate with all industries and activities. The scope and depth of influence - ubiquity, determine the institutional level of the phenomenon. Digitalization not only changes outdated or dysfunctional institutions, but itself becomes a rule / condition for business success, transforming profitable business models into customer-centric ecosystems. Analysis of materials for 2020-21: a Gartner survey, a report of the American Chamber of Commerce in Shanghai, a Capgemini study, NASDAQ 100 forecasts, stock market reports, expert reviews, led to the following conclusion. Financial management in the supply chain using digital product infrastructure offers new effective ways of commercial finance, such as decentralization of finance, open blockchain networks, tokenization of corporate assets, setting new rules for doing business.
V.E. Ponamorenko, Г. А. Насырова, Gaukhar Kodasheva, T.V. Schyukina · 5 authors
the activity of the scientific school: "Strategic management of rental rela tions" is considered. It carries out scientific research in the field of theory and methodology of rent assessment as superprofits, etc. a brief overview of the main scientific, educational, creative results and publications is pro vided. Interaction with other scientific schools, including on security issues, is also important.
Open access
Economic and Technological Developments in Russia
Economic, Social, and Public Health Issues in Russia and Globally
The article is devoted to the study of the paradigm of accounting, control and analytical information that affects the success of business processes in the corporate and state sectors of the economy. The authors propose the step-bystep development of the methodology for managing big data and the creation of corporate digital ecosystems (CECE). This includes clarifying the content of the digital ecosystem concepts as well as the development of a mechanism for collecting and processing information for corporate management (using modern digital technologies and system financial platforms) with the conclusion that the most productive is the distributed ledger technology (DIT). On the basis of a clear identification of the positive and negative consequences of scaling the CECC, recommendations were made on the technology for transferring reporting data. It has been proven that DIT offers a choice for the best scaling options, can be also applied when transferring reporting information to various higher authorities. It has been determined that the search for new and improvement of the applied technologies for managing big data is actualized as the information field expands and its diversity. The possibilities of collaboration of database management systems (DBMS) are disclosed and directions for improving the efficiency of new digital technologies for managing accounting and control information (distributed registers and their variants) are identified both for large ecosystems (the economy of the country, territories, regions, clusters and banking and other large holdings) and small (economic entities and their information technology and economic departments).
The article considers a new tool for portfolio investors - cryptocurrency. - its concept, the technology on which it is based, the advantages of this technology, the attractiveness of cryptocurrency for investors, existing investment methods, as well as a comparative analysis of the profitability and volatility of Bitcoin, Etherium, Litecoin cryptocurrencies and shares of Virgin Galactics, Nike, American Airlines. Currently, such an investment tool as a cryptocurrency is not always perceived positively, there are disagreements about its significance and investment attractiveness, many states deny and prohibit the use of cryptocurrency as a digital currency option. However, every year the popularity of this investment asset increases sharply, investors of various levels come to the cryptocurrency market, gradually some countries accept and legalize the use of cryptocurrency. The paper also presents excerpts from the unified glossary of the Eurasian Economic Commission, which considers cryptocurrency as a new investment tool, as well as a protective mechanism against the volatility of other investment assets. In the modern world, technologies are developing rapidly, new ways of investing and portfolio analysis are being born, for example, algorithmic trading, which allow the investor to adapt to the peculiarities of cryptocurrency trading.
The article presents one of the most important, in the author's opinion, manifestations of further intensification of the processes of financialisation of global financial markets, which was the emergence of decentralized digital currencies (so-called cryptocurrencies) based on blockchain technology. Their creation and existence on the global financial market have been widely considered as one of significant effect of the global financial crisis, which symbolic beginning is September 15, 2008, when one of the largest US investment banks Lehman Brothers collapsed. The worldwide COVID-19 pandemic has only highlighted the importance of this effect of financialization. The purpose of the article is to present the impact of cryptocurrencies, including bitcoin, on the deepening of the processes of financialisation of modern financial markets. Author analysis is based on statistical data, on the literature review and documents of world financial institutions.
The article examines the main stages of evolution of blockchain technologies in the activities of various companies from 1991 to the present. The aim of the article is to study the evolution of the use of blockchain technologies in the practice of different companies. The research methodology includes the use of the historical method to study the main stages of development of blockchain technologies and the study of blockchain use practices by different companies. The relationship between the stages of evolution and Tiers of Blockchain has been established: 2008-2013 (Blockchain 1.0); 2013-2015 (Blockchain 2.0); 2015-2018 (Blockchain 3.0); From 2018 to now (Generation X). The main types of blockchain (public blockchains; private blockchains; semi-private blockchains; sidechains; permissioned; distributed ledger; shared ledger; fully private of proprietary blockchains; tokenized blockchains; tokenless blockchains) are systematized. Peculiarities of practical implementation of blockchain technologies in the activity of companies of different sectors of the economy are studied. A SWOT-analysis was conducted, which revealed that blockchain technologies will undoubtedly continue to develop, affecting many industries, including public administration, retail, information technology, travel, health, education, agriculture and entertainment. One of the ways to improve the use of blockchain technologies should be: increasing the confidentiality of operations; scaling of chains of blocks; establishing compatibility between different blockchain systems; strengthening the security of blockchain operations; individual approach to the use of blockchain technologies.
The paper demonstrates that Bitcoin is not money but rather a digital commodity that has value but no value-added. We show that both the production of and the speculation with Bitcoin draw from the existing global pool of value-added. By extending the Classical Political Economy approach and the New Interpretation of the labour theory of value to the domain of digital commodities, the paper argues that Bitcoin mining is an automated reproduction process that requires no direct (living) labour and thus creates no new value. Bitcoin, in this regard, is not ‘digital gold’. Between sectors, Bitcoin mining redistributes wealth and value-added already in existence, while Bitcoin miners with more computational power compete to appropriate the mining profits within the blockchain. The Bitcoin blockchain then creates rivalry in both the ownership and the use of the digital commodity through non-legal means. Our approach can be further expanded to the larger domain of automated digital commodities that are reproducible without the expenditure of direct, living labour.
The relevance of the research topic is related to the distribution and development of a new financial instrument, aimed at studying and developing such issues as the features of the object and subject of crimes committed in the circulation of cryptocurrency in our country and in other countries, international cooperation in the field of cryptocurrency circulation and the experience of foreign countries in this direction. These questions are important not only for understanding the relationship between the use of cryptocurrencies by transnational criminals, but also for finding measures to control and prevent such cybercrimes. It is necessary to make one more note, in this final qualification work such terms as cryptocurrency, virtual currency, digital currency and digital cash will be used interchangeably to describe cryptocurrency. In the era of globalization, the accelerated development of technology, it is impossible not to notice and feel the influence of the virtual world. This virtual world, referred to as the Internet, has simplified many life processes. In the recent past, crimes were more local and less transnational
Subject. The article considers the interaction of subjects of tax relations, taxation of transactions using cryptocurrencies. Objectives. The aim is to show the features of taxation of transactions using cryptocurrencies, the importance of information in the blockchain for tax administration. Methods. The study employs general scientific methods of research. Results. The paper unveils problems of regulating cryptocurrency transactions at the legislative level, shows the specifics of taxation of organizations engaged in mining activities, defines the areas of interaction between tax authorities, banks and taxpayers, using blockchain technologies. Conclusions. The mining can be equated to entrepreneurial activity, and regulated based on the assumption of using special tax regimes.
Aziz Hafis Ogly Safarli, Murad Azer Ogly Mamedov, Aleksei Ivanovich Bolonin
The article examines the genesis and technologies of the cryptocurrencies, presents data from leading cryptocurrencies platforms for the purpose of in-depth analysis of the current market situation. In recent years, there has been a significant growth of the cryptocurrency market, the development of new technologies and products on the market, as well as an increase in its influence on more traditional financial markets. In this regard, the issue of regulating cryptocurrencies at the national and supranational levels is becoming increasingly relevant. The subjects of the research are the international cryptocurrency market, the technology of the distribution register, the experience of various countries in regulating the issuance and circulation of cryptocurrencies. Based on the results of the study, the authors identified current trends in the global cryptocurrency market. According to the authors, it is practically impossible to completely ban the issue and turnover of cryptocurrencies by the state due to their decentralized nature. Regulation of the cryptocurrency market is a new source of funds for the tax budget, and will also contribute to the further development of the field of digital technologies. In the article, the authors investigated the approaches a number of countries in the direction of regulation and legalization of the cryptocurrency market, which can be used as an example in the process of creating a regulatory framework for the Russian cryptocurrency market.
Aleksei Aleksandrovich Ruban, Alina Viktorovna Krivopuskova, Dmitrii Sergeevich Kleimenov
Currently, the popularity of cryptocurrencies as an investment asset is growing, bitcoin is the most attractive among them, since it is the oldest instrument in this market. In this paper, the authors examined the advantages and disadvantages of the cryptocurrency in question, the history of its creation. The analysis of the effectiveness of the inclusion of the digital asset in question into the structure of an investment portfolio consisting of assets of various classes was carried out using the Harry Markowitz portfolio theory. The relevance of the chosen topic is confirmed due to the popularity of digital assets in modern conditions. The existing gaps in the legal regulation of their turnover are gradually being filled, and institutional investors are increasingly investing in the purchase of cryptocurrencies. The results of the study indicate a significant increase in the profitability of the investment portfolio after the addition of bitcoin, which can in some proportion become an effective substitute for investments in the stock market of American companies. The analysis revealed a high degree of mutual correlation between the dynamics of the bitcoin price and the S&P 500 index. The construction of the regression equation and the calculation of the determination coefficient give reason to believe that the dynamics of the S&P 500 index by 92.25% correlate with fluctuations of the price of bitcoin, which is due, apparently, to the attractiveness of the new and tempting investors with the profitability of the cryptocurrency market. The results obtained, on the one hand, indicate the possibility of using technical and fundamental analysis tools to work with crypto assets, on the other hand, the convergence of the behavior of this type of asset with changes in traditional market benchmarks.
The article takes cryptocurrency as an example of how criminals and terrorist groups seek to weaken national security. The decentralized nature of virtual currency along with the lack of regulations foster clandestine operations and illegal activities. Il
Objective. The aim of the work is to determine the prospects for the development of digital financial instruments in the management of social and economic systems. Method. The comparative analysis of the results of an anonymous survey using interactive multi-user social networks was used as research methods in the work. Result. The factors and key parameters influencing the development of cryptocurrency mechanisms are revealed, the advantages and disadvantages of using digital tools are identified. Suggestions for the management of cryptocurrency instruments and recommendations for improving the reliability and development of digital instruments in the financial and digital environment are given. The results of the analysis of a survey of 1121 respondents on the topic of using cryptocurrencies are presented. The results of the study showed that the most commonly used cryptocurrencies are Bitcoin and Ethereum, with a significant proportion of respondents preferring digital activities such as mining and trading. At the same time, a significant number of respondents believe that the future development of digital financial instruments is directly dependent on the legitimization of cryptocurrencies by the state and improvement of blockchain technology. Conclusion. The development of cryptocurrencies cannot be assessed unambiguously. With the development of cryptocurrency instruments, a number of threats arise, which include significant volatility, the presence of legislative restrictions on their use, and the inability to withdraw operations. The further development of cryptocurrencies should be associated with the legal regulation of their distribution, both at the national and international levels, which will ensure the determination of their legal status among other monetary units. It is also necessary to carry out a phased introduction of cryptocurrencies into payment systems for cash settlements, which should be carried out on the basis of the organization of the official circulation of cryptocurrencies and blockchain technology.
В эпоху цифровизации человечество использует актуальные концепции и технологии, которые помогают упростить жизнь. Развитие информационных технологий оказало значительное влияние на экономическую трансформацию, и привело к появлению электронных денег. Достижения в информационных технологиях облегчили их транзакцию, возникла новая система – криптовалюта, не нуждающаяся в финансовых посредниках. Криптовалюты существуют уже более десяти лет, и их популярность стремительно набирает обороты. Одна из современных технологий, используемых для транзакций с криптовалютами, преимущества и недостатки которой до сих пор неясны, называется блокчейн. По мнению одних экспертов, это технология будущего, но по мнению других – это угроза конфиденциальности пользователей. В статье предпринята попытка обозначить отношение пользователей к криптовалютам. Так как природа криптовалюты неконтролируема, она вызывает множество вопросов у экспертов в данной области. В этом исследовании был произведён систематический библиометрический анализ, в котором, основываясь на мнениях экспертов в области криптовалютного рынка, представлены положительные и отрицательные стороны использования криптовалют. Статья будет полезна исследователям, которые изучают вопросы криптовалюты и блокчейна в области экономических наук. In the era of digitalization, humankind uses up-to-date concepts and technologies that allow simplifying life. The development of information technology has had a significant impact on the economic transformation, and led to the emergence of cyber money. Advances in information technology facilitated the money transaction, and a new system emerged, that is cryptocurrency which does not require financial intermediaries. Cryptocurrencies have been around for over a decade and their popularity is still growing. One of the modern technologies used for cryptocurrency transactions, the pros and cons of which are unclear to date, is blockchain. Some experts claim this is the technology of the future, while others say it is a threat to user privacy. This article attempts to outline users' attitudes to cryptocurrencies. Since the nature of cryptocurrency is uncontrollable, it raises many questions from experts in the field. Based on their views, this study employs a systematic bibliometric analysis showing both positive and negative aspects of using cryptocurrencies. The paper could be useful for researchers specializing in cryptocurrency and blockchain issues in the field of economic sciences
Introduction. The transition to digital technologies stimulated the emergence of new accounting objects in the form of digital assets whose features are problematic for being displayed in a rather tightly regulated system of accounting and reporting standards. In the context of emerging new ways of using crypto assets in business practice and increasing the volume of transactions with them, accounting has problems with displaying digital assets in part of confirming their controllability, their assessment at various stages of the life cycle, and identification of participants of cryptocurrency transactions. The paper deals with impact of economy digitalization on accounting methodology in the context of the Industry 4.0, in particular, the prospects for a separate display of digital assets in financial statements. Purpose. This article is aimed at the systematic substantiation of the exclusive status of digital assets as a fundamentally new accounting object in order to further develop, on this basis, the strategy for the development of their accounting and displaying them in the companies’ reporting. Methods. The paper contains a critical analysis of scientific publications devoted to the essence, status and features of the digital assets’ use, as well as the formation of information about them in the accounting and financial statements. The authors have carried out a bibliometric analysis of the frequency of use of terminology in the field of digital assets with the help of special software (VOSviewer and Google Trends). Results. The authors have developed a taxonomy of digital assets based on the use of distributed ledger technology and cryptography. The paper also explores the issue of the differentiated application of existing valuation bases for various types of digital assets. The article systemizes approaches to the deanonymization of participants in transactions with crypto assets which are used to control their origin and the legal regime of applying, for the purpose of rational organization and accounting of them. Conclusions. There is a need to introduce a separate standard designed to regulate accounting and display of digital assets in financial statements, in order to provide stakeholders with relevant information in the process of making managerial and investment decisions.
Serhat Yüksel, Hasan Dınçer, Çağatay Çağlayan, Gülsüm Sena Uluer · 5 authors
Abstract It is predicted that the bitcoin system will enter many areas of our lives in the future. Although it has many benefits, the most criticized issue of this system is excessive energy consumption. Since an excessive amount of energy is used in this process, it is vital that the preferred energy is environmentally friendly. For example, mining bitcoin with fossil fuels is likely to release a significant amount of carbon gas into the atmosphere. This will cause serious environmental problems. Therefore, great attention should be paid to the type of energy that will be used in bitcoin mining. In this study, it was stated that it would be beneficial to prefer nuclear energy in bitcoin mining. As a result of the use of nuclear energy, no carbon gas is released into the atmosphere. This will help reduce environmental pollution to a significant extent. Another dimension of nuclear energy being preferred in bitcoin mining is that the energy produced is continuous. The main reason for this is that nuclear energy is not affected by climatic conditions and temperature differences. Thanks to the preference of nuclear energy in bitcoin mining, it will be possible to contribute to the uninterrupted progress of this process.
Aleksandra N. Levitskaya, Nadezhda N. Pokrovskaia, Elena A. Rodionova
The article provides a comparative analysis of blockchain platforms for creation, storage and trusted access to personalized documents for labor market participants. A project is discussed for creating reputation tokens as a crypto-currency of public trust, or as NFT, unique non-fungible assets of brand competency certificates. The paper investigates a number of problems arising in the interaction of employers and applicants, in particular, cybersecurity and reliability of certification, security of data and information flows, reconciliation of information about real work experience and obtained qualifications with employers' requests. The problems of the younger generation in the search for work and obtaining the desired positions are noted, i.e., the lack of data on competencies acquired, portfolio, previous experience. The blockchain platforms can help with solving tasks of HR service in the search and selection of candidates. The digitalization of social and economic life in Russia, in particular, labor market, is influenced with the cultural inertia and chasm of confidence between individuals, organizations and public administrations, the advantages of the use of blockchain technologies opens up in the field of recruiting and building a career path are shown on the basis of the enhancement of the mutual trust within the networks of distributed ledgers.
Impulse Buying and Technology Impacts
Economic and Technological Developments in Russia
Innovations in Education and Learning Technologies
Intellectual contracts based on blockchain technology improve the efficiency of supply management of an automobile enterprise by optimizing the transactional costs of supply logistics. The present research featured KAMAZ PTC. The goal was to develop an interaction mechanism for all participants of an intellectual contract in supply activities. The article includes a review of Russian and foreign publications about intellectual contracts in various business spheres, supply management efficiency, optimization of transactional costs, and blockchain technology. The study made it possible to build an interaction mechanism of the parties involved in a blockchain intellectual contract. It also revealed a pattern of changes introduced to the intellectual contract at different stages of interaction between the initiator and suppliers. The authors also highlighted the difference between smart contract and intellectual contract. An intellectual contract appears as a logical development of a smart contract and allows the sides to change the terms. The party interaction mechanism can improve the supply efficiency as it optimizes the magnitude of transactional costs.
The article outlines the essence of cryptocurrency and token as the most common digital currency. Arguments are given for the inevitability of the appearance of a state digital currency and the importance of legal regulation of a new form of money, as well as changes in the activities of customs services, is noted.
Electronic money has become widespread in the modern world. This is facilitated by the high rate of transactions, low costs, and the increasing use of Internet technologies. One of the most popular types of digital money is possible to define cryptocurrency. But there are problems hindering its use for economic development. Therefore, the directions of using cryptocurrencies in many areas of the economy are being studied. The purpose of the study is to reveal the causes of the problems of introducing cryptocurrencies in a market economy. Empirical, systematic, analytical and other methods were used to study the main problems of using cryptocurrencies on the example of bitcoin. The meaning of the cryptocurrency is revealed, the most significant problems of its use are identified.
Economic and Technological Developments in Russia
Economic Development and Digital Transformation
Digitalization and Economic Development in Agriculture
Summary. Today, the relevance of cryptocurrency has risen sharply again. The cryptocurrency market has increased and is in no hurry to fall. However, this topic is still ambiguous and surrounded by many myths. Before becoming a stable means of payment, the cryptocurrency began to resemble financial instruments. After all, it is more common to invest in cryptocurrency than to use it when shopping. Despite many different types of cryptocurrencies, they have very similar shortcomings that may prevent them from continuing to emerge in the financial market. To understand the place of blockchain technology among financial instruments, it is necessary to delve into the technical features of this phenomenon and identify possible solutions to the problems underlying the underlying technology and philosophers of the decentralized payment system. The main concern and, at the same time, the advantage of cryptocurrencies is their limited number. In this way, the digital currency acquires values such as gold or silver. This paper raises the question of the viability of digital money as a financial instrument and a means of payment. After all, it is assumed that after extracting the maximum amount of a cryptocurrency, it will cease to exist as a blockchain will no longer be supported by miners. The paper proposes a scientific approach to determining the place and role of cryptocurrency as a payment instrument. The emergence of the cryptocurrency market is considered because it is regarded as a new stage in the development of financial relations. Existing types of cryptocurrencies are analyzed, which are improved examples of previous versions. However, this topic is ambiguous because in many countries, the virtual currency has an inaccurate legal status or no legal status, which is why the life cycle of cryptocurrencies was studied, on the example of the most successful today. To determine the place of cryptocurrencies in the system of financial instruments and their properties, the main idea, and basis of the technical features of this phenomenon were analyzed.