Virtual currency schemes – the future of financial services
Purpose – The purpose of the paper is to determine the future role of virtual currencies. This paper indicates their pros and cons as alternatives to “real” money and explains their appearance as the reflection of the present trends. It also presents the possible scenarios of their development. Design/methodology/approach – The paper is based on the former foresight research results and literature review. It highlights the main trends in contemporary economy and their impact on financial services. The Bitcoin case is the starting point for the virtual currencies’ market analysis and construction of possible market changes scenarios. Findings – Virtual currency schemes are the reflection of present trends. They are just ahead of our times but may become a common means of payment, changing the way of providing financial services, eliminating intermediaries and marginalizing the role of financial institutions. Research limitations/implications – The multiplicity of virtual currencies and ceaseless introducti...
Prospects for Crypto-Currency and Blockchain Technologies in Financial Markets
The article considers the prospects for using blockchain technology as a source of financial innovation. The theoretical interpretation of the process of cryptocurrencies occurrence in the context of definitions of electronic funds and virtual payment services is carried out. Cryptocurrencies show impressive dynamics of growth, but this is due to the rapidly growing public interest, which provokes demand in the market and limits supply. The study clarifies the growth factors of the cryptocurrency, gives an assessment of the prospects and forecasts various scenarios for the cryptocurrency system development. In the course of the correlationregression analysis of the Bitcoin price dynamics, it is determined that the observations approximations best correspond to the polynomial model of the third degree and the exponential model. For both of them, the determination coefficient is close to the boundaries of the confidence interval. Based on the analysis of the Bitcoin market price dynamics, it is concluded that the demand for cryptocurrency has been formed not by its intrinsic value, but by market expectations, as well as by the level of interest and involvement of participants in this virtual network (via network effect). Based on the example of the financial market, it is shown that the possibilities of blockchain technology are versatile. The prospects for its RESUMEN: El artículo considera las perspectivas de utilizar la tecnología blockchain como fuente de innovación financiera. Se lleva a cabo la interpretación teórica del proceso de ocurrencia de criptomonedas en el contexto de las definiciones de fondos electrónicos y servicios de pago virtual. Las criptomonedas muestran una impresionante dinámica de crecimiento, pero esto se debe al rápido crecimiento del interés público, lo que provoca una demanda en el mercado y limita el suministro. El estudio aclara los factores de crecimiento de la criptomoneda, da una evaluación de las perspectivas y pronostica varios escenarios para el desarrollo del sistema de criptomonedas. En el curso del análisis de correlación-regresión de la dinámica de precios de Bitcoin, se determina que las aproximaciones de las observaciones se corresponden mejor con el modelo polinomial de tercer grado y el modelo exponencial. Para ambos, el coeficiente de determinación está cerca de los límites del intervalo de confianza. Con base en el análisis de la dinámica de precios del mercado de Bitcoin, se concluye que la demanda de criptomoneda no se formó por su valor intrínseco, sino por las expectativas del mercado, así como por el nivel de interés y participación de los participantes en esta red virtual ( a través del efecto de red). Basado en el ejemplo del mercado financiero, se muestra que las posibilidades de la tecnología development are determined by the needs of decentralization in order to improve the sustainability and security of business processes.
The Agricultural Revolution
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