Investment and Payment Attractiveness of Cryptocurrencies – Assessment from the Perspective of SWOT Analysis
Agata Żółtaszek
University of Lodz , Polandhttps://orcid.org/0000-0003-3657-288X
Aleksandra Matera
University of Lodz , Polandhttps://orcid.org/0000-0003-4900-3889
Abstract
The cryptocurrency market is still in the development phase, both technologically and organizationally, but it has undoubtedly revolutionized the functioning and perception of the financial sector. As the results of a global survey suggest, as many as 92% of respondents have heard of cryptocurrencies, but only 50% declare that they know what they are. Since their introduction into circulation, they have invariably aroused interest, but also concerns. Therefore, the purpose of this study is to assess the investment attractiveness of cryptocurrencies using the SWOT method. The article presents the characteristics of virtual currencies (advantages and disadvantages, i.e. anonymity, decentralization, transfer module), as well as selected opportunities (i.e. increased availability, incorporation into payment systems and transaction facilitation) and threats (in particular financial, ecological and criminal risks). The results of the analysis should prove helpful in the process of making investment and financial decisions regarding the use of cryptocurrencies.
The discrepancy in the goals and priorities regarding the regulation and evaluation of cryptocurrencies between various entities (individual and collective users, states, public institutions, criminal groups) makes the future of virtual currencies difficult to predict. It can be expected that in the long term, the popularization or marginalization of cryptocurrencies will be determined by the extent to which it will be possible to take advantage of opportunities and minimize threats at subsequent stages of development, as well as the consistency and effectiveness of policies relating to investing in cryptocurrencies.
Keywords:
cryptocurrencies, virtual currencies, finance, economics of crime, ecologyReferences
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University of Lodz https://orcid.org/0000-0003-3657-288X
