Mazaraki A., Volosovych S. Majning kryptovaljut v umovah krytychnyh transformacijnyh procesiv. Scientia Fructuosa. 2022. № 2. S. 4-20. https://doi.org/10.31617/1.2022(142)01

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DOI: https://doi.org/10.31617/1.2022(142)01

UDC 336.74:338.2
JEL Classification: F23, G15, G18, G29, O16, P48
 
MAZARAKI Anatolii,
Doctor of Science (Economics), Professor, Acting rector
ofState University of Trade and Economics 
19, Kyoto St., Kyiv, 02156, Ukraine
ORCID: 0000-0003-1817-0510
rector@knute.edu.ua
 
VOLOSOVYCH Svitlana,
Doctor of Science (Economics), Professor, Professor of Department of Finance
State University of Trade and Economics
19, Kyoto St., Kyiv, 02156, Ukraine
ORCID: 0000-0003-3143-7582
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CRYPTOCURRENCY MINING IN THE CRITICAL TRANSFORMATION PROCESSES

Introduction. With the growing instability of financial markets, the threat of devaluation of savings, regulation of transactions with fiat currencies, cryptocurrencies are becomingpopular, and the problems of their mining arerelevant.
Problem. As an entrepreneurial activity, mining can bring significant income to business entities, but at the same time itincreasescer­tain types of threats to social development, including environmental and energetic.
The aim of the article is to study the role of mining in the cryptocurrency market and to develop scenarios for the development of cryp­tocurrency mining against the background of large-scale social transformations.
Methods. The theoretical and methodo­logical basis ofour work includesthe articles of domestic and foreign scientists devoted to cryptocurrency mining. Methods of theoretical generalization, comparative analysis and syn­thesis were applied in the paper.
Results. Mining is the process of extracting cryptocurrency by certain participants ofthe cryp­tocurrency market (miners), who ensure the functioning of the cryptocurrency network with their computing power, which is based on solving problems of decrypting the next block of the chain using a specific protocol for crypto­currency. The authors conclude thatthe miners perform mining and verification functions. Tech­nical, economic, market, legal, natural and cli­matic conditionfactors influence the decision to carry out business activities in cryptocurrency mining.
Conclusions. Mining isexpandingthe app­lication of technological innovations in the field of finance in the context of global social trans­formations. Mining can create energy, environ­mental and economic challenges. At the same time, it is a source of incometo the state budget and a tool for ensuring energy systems balance in the surplus of electricity produced. Govern­ments may realizean optimistic, pessimistic or neutral scenariosfor the development of cryp­tocurrency mining as a result of implementation of regulatory measures.
Keywords: cryptocurrency, cryptocurrency market, mining, mining ferms, cloud mining, mining pool.

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