The increasing role of cryptocurrencies in the modern financial market and its regulatory framework
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| Format: | Thesis |
| Kulcsszavak: | bitcoin Blockchain technology cryptocurrency financial market investment tool laws and regulations money-laundering payment method Regulatory Framework |
| Online Access: | http://dolgozattar.uni-bge.hu/41703 |
| Abstract: | Cryptocurrencies are the type of virtual currencies and a new phenomenon of the digital age. Blockchain technology functions as the underlying technology of Bitcoin and other cryptocurrencies. Cryptocurrencies have several distinguishing characteristics due to their innovative technology. These are high-security architecture, decentralized nature, anonymity, and price volatility all of which contribute to the rapid development of cryptocurrencies as an investment and payment tool in today’s financial market. Investment in cryptocurrencies is possible in three ways: cryptocurrency trading, purchase of Initial Coin Offering (ICO), and becoming a miner or validator. Cryptocurrencies also act as an effective alternative payment method that is both fast and cost-effective compared to the traditional payment methods. Unfortunately, cryptocurrencies still lack a regulatory framework around the world and there is not a commonly accepted definition or laws and regulations. It is one of the main disadvantages of cryptocurrency which slows down the adoption process and has an adverse impact on the price formation of Bitcoin and other cryptocurrencies. |
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