Abstract
The article is devoted to a comprehensive study of the determinants affecting the mechanism of functioning of cryptocurrencies in the context of global economic uncertainty. The paper provides a comprehensive analysis of the history, essence and mechanism of functioning of cryptoassets, and also examines the principle of Blockchain technology and the process of cryptocurrency mining. It is found that the profitability of mining is assessed taking into account such factors as electricity costs, hardware requirements and remuneration for mining, which provides valuable information about the economic feasibility of this activity. The authors analyze the main cryptocurrencies and their capitalization, and identify the main trends in the crypto markets. Based on the foundation of understanding the basic mechanics of cryptocurrencies, the study identifies and examines the key determinants that affect their functioning. Thus, internal and external factors of influence on cryptocurrencies were identified. The former include supply and demand, while the latter include economic, macrofinancial, political, technological, and social factors. The analysis of these factors revealed a complex network of influences that shape the cryptocurrency market, emphasizing the interaction between global economic uncertainty and the behavior of digital assets. It was found that while traditional assets can lose their stability in times of global instability, interest in the digital currencies under study is growing rapidly, and the introduction of new technologies allows to eliminate the existing weaknesses of cryptocurrencies. To ensure an exhaustive determination of the determinants of action, the chronology of events and news that affected the cryptocurrency market from 2018 to 2023 was studied. This visual representation made it possible to identify key changes in the development vector, including: the actions of the US Federal Reserve System, the war in Ukraine (which provoked a number of crises) and stricter regulation of Bitcoin and cryptocurrencies in general. Conclusions are drawn about the need to expand the analysis of the impact of the regulatory framework on the cryptocurrency market and to develop a comprehensive methodology for assessing the factors that affect cryptocurrencies. Keywords: cryptocurrencies, global economic uncertainty, determinants, factors, Bitcoin, Blockchain.
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