Cryptocurrencies and Traditional Financial Instruments: A Comparative Analysis and Perspectives

Abstract

М. М. Шевченко, к. е. н., доцент, доцент кафедри обліку і фінансів, Національний технічний університет "Харківський політехнічний інститут" В. М. Гаврилюк, к. е. н., доцент, асистент кафедри фінансів, банківської справи, страхування та електронних платіжних систем, Заклад вищої освіти "Подільський державний університет" О. О. Рудич, к. е. н., доцент кафедри фінансів банківської справи та страхування, Білоцерківський національний аграрний університет КРИПТОВАЛЮТИ І ТРАДИЦІЙНІ ФІНАНСОВІ ІНСТРУМЕНТИ: ПОРІВНЯЛЬНИЙ АНАЛІЗ І ПЕРСПЕКТИВИ Over the past few years, cryptocurrencies have become popular and are being used just as actively as traditional financial instruments. What is specific about cryptocurrencies is that they are only digital assets, but they can be used for storing and transferring significant sums of money (with low fees and no intermediaries), as well as for converting into fiat money. Despite the popularity of cryptocurrencies, traditional financial instruments remain the basis of the global economy due to their regulation. The advantages and disadvantages inherent in traditional financial instruments and cryptocurrencies shape the prospects for the development of each of these systems, taking into account that each user has their own considerations regarding the acceptability of profitability and riskiness of operations. The study aims to provide opportunities for comparative analysis of cryptocurrency and traditional financial instruments and to determine their development prospects. The results of the study demonstrate that the use of cryptocurrencies for transactions, combined with their advantages such as decentralization, anonymity, and fast transaction processing (compared to banking transactions), increases transaction profitability while also offering relative security and stability against external factors. However, the disadvantages of cryptocurrency, including high volatility, low liquidity, lack of regulation and limited circulation, risk of losing access