CRYPTOCURRENCY AND FINANCIAL MARKET
Keywords:Cryptocurrency, money, economy and banking system
Current scientific and technological development introduced an important innovation to the financial markets in the form of the cryptocurrency. Releasing of the crypto currency is based on the decentralized technology block chain.
The paper is focused on the most popular digital currency bitcoin in the modern world countries and Georgia. Decentralization unlike printed currency protects cryptocurrency from the fluctuation what is the main advantages of the cryptocurrency. In addition, electronic money is an independent currency from all central regulating institution with the fastest transactions made electronically and lowest charges. As for its disadvantages, this is fluctuation of the prices, as the value of the cryptocurrency changes based on demands.
In Georgia, both population and business sector are interested in mining of the virtual currency. Georgia is on the third place in the world by mining. The conditions supporting to popularization of the mining in our country is a flexible taxation system, comparatively low payment rate on the electricity and cheap labor.
As it is possible to purchase cryptocurrency anonymously without identification of a person, the participants of the transactions in cryptocurrency are not revealed, the risk of using cryptocurrency for the criminal activities like funding terrorism, money laundering is high. In addition, in a long-term prospective, the shadow economy is strengthened by the funding of the criminal world and development of the public welfare is becoming more unclear.