FUNCTIONING MECHANISM OF BITCOIN

Aleksandar Đorđević, Miloš Todorović

DOI Number
10.22190/FUEO1801085D
First page
085
Last page
096

Abstract


The connection between financial innovation and information technology industry has provided and kept the crypto currencies for some ten years on the market, a kind of offset of monetary evolution after the introduction of virtual, electronic and digital money. Although their essence is still wrapped up under the veil of secrets, the facts show that the value of Bitcoin as the first crypto currency has a rising trend, and that an increasing number of firms and individuals are deciding to use it. This will result in the emergence of over 1000 new crypto currencies. This paper explains the emergence and functioning of the Bitcoin, its characteristics and functions, the benefits and risks that it carries, as well as possible scenarios of further development of the international monetary system with crypto currencies.

Keywords

virtual currencies, crypto currencies, Bitcoin, money functions, international payments

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References


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DOI: https://doi.org/10.22190/FUEO1801085D

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