The Current Economic and Legal Significance of the Crypto-Currency in the Russian Federation

Abstract

Crypto currency is an innovative digital currency, the circulation of which occurs in an electronic network. Crypto currency in just a few years has become popular and even surpassed some national currencies in terms of reliability. The first and main digital currency was Bitcoin (bitcoin). Over time, analogs of bitcoin, such as: Namecoin, Litecoin, Peercoin and many others, appeared in different countries. Bitcoin is a payment system that exists in electronic form and is not controlled by any financial institution or any legal instrument of the state. It is worth noting that the limit of issuing digital money is limited to 21 million. The main advantages of bitcoin are that all operations are faster and more reliable, there is an opportunity to earn (in cases of appreciation of bitcoins, for example, in 2013 they rose in price), purchasing power and investment opportunity increase. However, bitcoin is not devoid of shortcomings, for example volatility, that is, the course of bitcoin can constantly change, the possibility of losing its investments, digital coins are not used everywhere. Despite the fact that attempts to introduce a digital currency have been made since the advent of the Internet, the practical use of this type of coins is not enough to this day. In addition, many users do not trust this method of payment. The prohibition of crypto currency in some countries, for example, Russia and China, is hindering the spread.