Proceedings of the 23rd International Academic Conference, Venice

THE NATURE OF BITCOIN AND SOME PRACTICAL ASPECTS OF ITS USE BY BUSINESS

ALEKSEI CHURILOV

Abstract:

Cryptocurrencies have become very popular in past few years. At recent time Bitcoin holds a dominant position on cryptocurrency markets. Lots of economists, programmers, bloggers, even lawyers call Bitcoin “money of the future” or “a pure means of payment”. But is Bitcoin and cryptocurrencies the money in the classic meaning of this phenomenon? Economic theory identifies money through the role that it plays in society, but can Bitcoin fulfill these functions? This paper discusses the nature of Bitcoin from the economic and legal perspective. Despite all controversies Bitcoin is used in business. Bitcoins and their use are a very actual issue, especially with a high popularity and high cost of Bitcoins. The paper covers the issue of legal status of Bitcoin and how can it be used in business activity, including examination of both advantages, such as “free advertisement”, simplicity, and other and disadvantages, such as security risks, uncertainty in a legal status, etc. Because of very different approaches to regulation of Bitcoin in different national jurisdictions, therefore this paper is interested in a comparative analysis of a regulation of Bitcoin’s legal status in different national jurisdictions.

Keywords: Bitcoin, business, legal status, virtual currency

DOI: 10.20472/IAC.2016.023.029

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