ECONOMIC ASPECTS OF CRYPTOCURRENCY MINING

Abstract

Introduction. Economic development of Ukraine in the third decade of the 21st century largely depends on the development of digital technologies, on which the cryptocurrency busi­ness directly depends. According to the Index proposed by chainalysis.com, Ukraine is one of the leaders in the world and the undisputed leader in Europe in the adoption of cryptocurrencies. This became possible thanks to the active development of financial and information technol­ogies in Ukraine, and the financial, economic and military-political crises only give additional impetus to the development of the cryptocurrency business due to its global nature and full or indirect independence from attempts at state regulation. One of the areas of cryptocurrency business development is cryptocurrency mining. The purpose of the article is to reveal the algorithm of conducting business in the field of cryptocurrency mining and the economic efficiency of mining in Ukraine and the possibility of its impact on economic growth in the country. Results. Cryptocurrency mining is the process of creating cryptocurrency coins. It has been investigated that the cryptocurrency mining process is not a financial pyramid or some kind of virtual game, but is one of the newest types of business activity, which requires significant the­oretical and practical economic and technical knowledge, is economically expedient both in the short and long term. When mining, you can use a variety of computer equipment, depending on the miner’s economic tasks and desired results. ASIC equipment has been developed for mining on an industrial scale. Cloud mining is used for investing. If there is no knowledge about mining and limited financial resources, you should use browser mining or mine on your own PC, laptop or smartphone. However, the most efficient and widespread mining takes place on video cards. It was found to be a by-product of mining. It is estimated that there is a slight correlation between the earnings of miners on the Ethermine mining pool and the daily mining profit. Conclusions. Although the history of cryptocurrency business is only one and a half decades, mining, as an object of business activity in Ukraine, is a significant economically effective type of business activity, which is noted in the world rating of the perception of cryptocurrencies, according to which Ukraine is one of the world leaders. Attempts to implement legal regulation of cryptocurren­cy mining both in Ukraine and in other countries, and its gradual implementation do not significantly harm the creation, distribution and use of cryptocurrency coins, however, will create transformed conditions for the economic attractiveness of cryptocurrency mining as business objects.