Abstract
The first cryptographic currency (Bitcoin) was created in 2009. Since then, cryptocurrencies have undergone dynamic development, and their user numbers risen apace. This article analyses and estimates the impact, development and growth of cryptographic currencies on the stability and functioning of financial systems. The paper also examines whether cryptocurrencies fulfill the basic functions of money. The first part addresses technical and legal issues of cryptographic currencies. The second performs a statistical analysis and impact assessment on public finances, banking sector as well as individual users have been performed. Bitcoin quotes are compared to other traditional financial instruments including rate of return, coefficient of variation, range, and Pearson’s correlation coefficient. The analyses which have been conducted lead to the conclusion that cryptocurrencies cannot be treated equally with money (they are treated more as investment assets), they are far more volatile than traditional financial instruments, and there is a significant similarity between cryptographic currencies and pyramid schemes.
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