TRADING IN BITCOIN AND OTHER CRYPTO CURRENCIES – A RISKY BUT LUCRATIVE BUSINESS FOR NOW
Abstract
Cryptocurrencies have made a big impact on the world financial scene. Today, there are over two thousand different cryptocurrencies in use. The most well-known of all is certainly bitcoin, which we will dedicate most of our attention to in this paper. Although to the wider community, the emergence of this virtual currency represented a risky, unreliable and fleeting innovation, for now it continues to secure extra income for its owners. There is little doubt that cryptocurrencies, and in particular bitcoin as the strongest currency among them, have drawn great attention from all international and national financial institutions. Although experience in the application of bitcoin and other cryptocurrencies is divided, experts estimate that bitcoin, as well as some other cryptocurrencies, will continue to record a growth. For this reason, an increasing number of countries is seriously considering its legalization and inclusion in regular financial flows. The aim of this paper is to, through an analysis of past experiences, draw attention to some important characteristics of cryptocurrencies, in particular bitcoin, and its treatment in modern financial flows.
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