DEVELOPMENT OF THE GLOBAL CRYPTOCURRENCY MARKET

Abstract

Cryptocurrencies represent a new form of property that exists only on the Internet. The first cryptocurrency to appear on the global market was Bitcoin, and its appearance is linked to the first financial crisis in 2008. The market capitalization of Bitcoin grew very quickly and in 2017 reached the highest capitalization in history (334 billion US dollars). Later, there was an expansion of new cryptocurrencies, of which there are currently over 1500 (e.g. Ethereum, Tether, BNB, USD Coin, etc.). The emergence of cryptocurrencies as a new concept affects the change in the perception of payments and money as a means of payment in general. The development of the global cryptocurrency market is indeed rapid and dynamic, and it is becoming an increasingly popular method of payment. Since the emergence of cryptocurrencies is not related to central banks, the need to change the classical systems and economic policies of countries is also expressed. The dynamic development of the mentioned market takes place in parallel with the development of information technologies, so there is a trend of capital outflow from classic capital markets to emerging global cryptocurrency markets. The question arises of the survival of traditional banks in the future, as more users trust cryptocurrencies. Global cryptocurrency markets are expected to expand more and more in the future. The paper will analyze the development of the global cryptocurrency market based on a sample of five of the most significant cryptocurrencies today