V. Voloshin, A. Lyamzin. On some features of crypto-currencies and their role in the modern financial world.

Abstract

Globalization, the unrestrained growth of money markets, the general computerization and the development of IT technologies have entailed the emergence of a huge number of additional institutions, financial instruments and new forms of interaction between people in our society. One of such institutions in the modern world is electronic money. In this article, we will talk about the subspecies of digital currencies - the "crypto currency’’ category. Digital currencies are gaining popularity now.  However, there are not so many people, who understand the content of the category "crypto currency" and familiar with the mechanism of its functioning. Blockchain is a special technology for one ranked transactional platform that uses a decentralized repository to record all transaction data. The first block of it has been developed in the financial sector to serve as the basis for the Bitcoin currency crypto. The key issue for a deeper understanding of the role of crypto currency is the definition of its economic nature. Ultimately, any economic phenomenon is a projection of the system of relations between people about the production, exchange, distribution and consumption of various kinds of products and services and their derivatives in the circumstances of limited resources. In this regard, the authors of this article set the task - to identify what economic relations the new digital currency theoretically displays and whether it can be considered as a full-fledged money.