Forming of Organizational and Economic Mechanism of the Cryptocurrency Market for the Countries with Position of Anticipation
Makarchuk Innа1, Perchuk Oksana2, Yaremenko Lіudmylа3
1Makarchuk Inna, Department of Finance, Accounting, and Taxation, SHEI «Pereiaslav–Khmelnytskyi Hryhorii Skovoroda State Pedagogical University», Pereyaslav-Khmelnitsky, Ukraine.
2Perchuk Oksana, Department of Finance, Accounting, and Taxation, SHEI «Pereiaslav–Khmelnytskyi Hryhorii Skovoroda State Pedagogical University», Pereyaslav-Khmelnitsky, Ukraine.
3Yaremenko Lіudmylа, Department of Finance, Accounting, and Taxation, SHEI «Pereiaslav–Khmelnytskyi Hryhorii Skovoroda State Pedagogical University», Pereyaslav-Khmelnitsky, Ukraine.
Manuscript received on January 12, 2020. | Revised Manuscript received on January 30, 2020. | Manuscript published on March 30, 2020. | PP: 72-79 | Volume-8 Issue-6, March 2020. | Retrieval Number: F7144038620/2020©BEIESP | DOI: 10.35940/ijrte.F7144.038620
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The article reveals the economic essence of cryptocurrency as an information and technological innovation. The authors have determined that cryptocurrency is a universal global means of payment, exchange, and investing, which exists in the form of a highly protected software code and is characterized by a free market exchange rate. Having considered technical, technological, and organizational aspects of using cryptocurrencies, the authors carried out the comparison of electronic money and cryptocurrency. The done analysis of markets and types of cryptocurrencies has enabled to form a ranking of cryptocurrencies by level of capitalization. The article describes the dynamics of the growth of cryptocurrency market capitalization and the domination of a Bitcoin’s market share. The authors have ascertained strengths of Bitcoin, which had allowed this cryptocurrency to become a useful international means of payment with the high investment potential. The article examines weaknesses of the exchange of cryptocurrency both ordinary consumers and governments. The authors have proven that institutionalization ensured by the formal and informal establishment of rules for functioning of cryptocurrency is necessary for effective functioning of cryptocurrency. The authors have substantiated three positions of institutional support describing the attitude of countries to functioning of a cryptocurrency market: a loyal position, categorical position, and position of anticipation. The authors have developed an organizational and economic mechanism for forming a cryptocurrency market based on functions, methods, and tools of management and suggested directions for undertaking a policy in the sphere of functioning of a cryptocurrency market for countries with the position of anticipation. The process of virtualization of modern society is inevitable. Сountries with the position of anticipation should support the course on innovation by solving a range of regulatory, technical and information issues on the development of the cryptocurrency market, based on leading international experience. The primary tasks should be: granting the legal status of cryptocurrency and developing rules for its circulation, introduction of technological innovations with the participation of the state, large corporations and venture funds, creation of an open ecosystem for interaction of all participants, as well as wide information support at all levels.
Keywords: Bitcoin, capitalization, cryptocurrency, electronic money, information technology, mining, virtual currency.
Scope of the Article: Software Economics