Abstract
The aim of this paper is to present the manipulation possibilities in the operation of information technology. Many authors have already dealt with cryptocurrencies and their investment potential, with special emphasis on bitcoin. Therefore, the aim of this paper is to identify possible manipulative activities in the segment of information technology about bitcoin as a possible means of fraud in the financial market, especially if it is analysed the trend of its movement and potential financial risk. In this paper, the authors investigate in detail the characteristics of securities by linking them to market manipulations. The authors analyse bitcoin as a relative market and financial unknown, explain its origin and the most significant characteristics, and define the risks in terms of possible market manipulations. Finally, the authors analyse the financial bubble that is created around bitcoin and its impact on the economy. The authors analyse that bitcoin and other cryptocurrencies are still suitable for fraudulent activities in financial markets and emphasize the importance of institutions in reducing potential risks. Keywords: bitcoin, institutions, bubble
Highlights
Despite numerous papers and discussions on bitcoin and other cryptocurrencies, several unknowns can be identified with this relatively new financial form
It is not known for sure whether this story is true, just as it is not known what the owner of the pizzeria later did with the received bitcoins, at today's prices it turns out that the American programmer paid around 580 million dollars for pizzas and for that he has a place in recent history of financial markets
Lack of reliable information about bitcoin, lack of understanding of the basis of its origin and functioning, dependence of functioning on miners without whose operation the bitcoin network could not exist at all, lack of its intrinsic value, unsuitability for accumulation of wealth, loss of function as a media for exchange, complete dependence on demand that is not based on any qualitative characteristic of bitcoin as a currency or as a security other than the expected further price increase, lack of information on whether that demand is autonomous or caused by angleoriented activities other than making bitcoin a very risky investment, make it a very suitable tool for market manipulation
Summary
Despite numerous papers and discussions on bitcoin and other cryptocurrencies, several unknowns can be identified with this relatively new financial form. Represents a kind of phenomenon; a future that may be predictable in the long run, but is completely uncertain in the short to medium term. In this regard, the question arises whether bitcoin is a random phenomenon that exceeded the expectations of its creators, and it should be emphasized that they are still unknown, or is it a carefully thought-out tool that will at some point serve to make a profit at the peak of investment balloons, to create a corner or to carry out some, so far unknown market manipulation. Indicators of technical analysis most often fail to indicate future price shifts Given the above, it seems that bitcoin and other cryptocurrencies need increased caution
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
