THE ECONOMY OF THE FUTURE: THE FUTURE OF CRYPTOCURRENCY

Abstract

The article will tell about the modern place of cryptocurrency. Today, the world is on the verge of a digital revolution that affects all spheres of public life. Obviously, cryptocurrency is a relatively new instrument of the financial market, but its cost does not depend on the amount of work invested in conventional goods and services.

An assessment of the structure of cryptocurrencies has shown that Bitcoin is still the most common type of it, although it increases its volume and Ethereum. Cryptocurrencies (such as Bitcoin, EOS, Ethereum, Litecoin, and others) undermine traditional banking and financial systems. Cryptocurrencies are usually based on a set of technologies known as blockchain technology. The potential impact of blockchain technology on the institutional economy is enormous. Blockchain-based applications for Supply Chain Management, Marketing, and finance are already decentralizing and optimizing vital institutional functions. We rely on the theory of transaction cost economics and the transactional nature of Blockchain technology to provide a model that shows how and why blockchain-based applications are profitable. The article analyzes the advantages of blockchain and cryptocurrencies, how they work, the evolution of cryptocurrencies, and classifies the reasons that allow them to take their place in the modern financial system.