It is our great pleasure to launch our new journal 'The Review of Economics, Finance and Investments' (REFI), which is devoted to topics in the field of economics, finance and investments. The first issue is about cryptocurrencies, blockchain technology and stock exchanges. It is a topic on which there is a lively discussion in both universities and practitioners. Hopefully, the research papers published in this issue will make an important contribution to the global scientific discussion on cryptocurrencies, bitcoin (BTC), blockchain technology, and stock exchanges.
Cryptocurrencies emerged after the recent financial crisis of 2007-2009. Since then, we have been observing a very dynamic development of these innovative financial instruments. They are the main cause of intense changes at the interface between the real economy and finance, as well as a manifestation of the financial revolution, the essence of which is to combine freedom with technological progress. They changed the conditions of functioning on financial markets. Their capitalization and diversification is growing. Many experts indicate that they accelerated changes in economies. Cryptocurrencies are currently the focus of economic practitioners and economic theorists. They are discussed in business bodies and universities. They are a manifestation of the ongoing digital transformation. Cryptocurrencies are digital, cryptographic-based and operate in an IT environment. They are also a special form of digital currencies, which in turn are treated as another form of money. Much attention is also paid to the value of cryptocurrencies and its determinants, as well as the effects of their implementation into financial and economic systems.
Currently, one of the most important and widely discussed cryptocurrencies is BTC. It gained publicity mainly due to the new applications in the economy, spectacular increases in price value, as well as a sharp increase in turnover on financial markets. On the one hand, BTC has brought investors substantial profits, and on the other hand, it has become another attractive investment opportunity. There is a debate about the functioning of BTC or more generally cryptocurrencies, as national or international currencies, the effects of replacing the currently well-known fiat money with cryptocurrencies, and the impact of these changes on the efficiency of the economy.
One of the key economic benefits is the adaptation of blockchain technology to economies, which was promoted by the development of cryptocurrencies. Blockchain technology is a distributed set of transactions carried out by network users. This technology was used for the first time in 2009 as part of the BTC cryptocurrency and is still used today to record transactions. This system operates in a distributed network and serves the exchange of values between the users of this network. Today, the possibilities of blockchain technology go beyond the cryptocurrency markets, and the basic mechanisms of its functioning have also found application in other business solutions. One of the first industries to take advantage of these opportunities was the financial market, including the banking sector. Currently, other sectors and industries that want to benefit from the advantages of new blockchain-based technologies are also conducting intensive research and development activities, using innovative blockchain technology solutions, and testing the potential use of blockchain. Transactions using blockchain technology are transparent and without intermediaries. Anyone can trace them from anywhere on the web.
Blockchain as a decentralized and distributed database creates new threats and challenges. The problem with achieving complete security within blockchain technology is that it is completely new. Most initiatives related to this technology are in the early stages of development and often operate as a pilot solution. It must be remembered that in Poland this technology still requires many legal regulations. It can play an important role in the management process, thus contributing to economic development. According to experts, blockchain will change the way companies operate in almost all industries within a decade. There is no doubt that this technology will be systematically developed, also outside the area of digital payments. It is already slowly being used in healthcare, politics, administration, as well as in the real estate and energy markets.
Cryptocurrencies will be an important determinant of changes in stock exchanges and financial markets in the coming years. Many economists, politicians and managers are wondering if it is worth investing in cryptocurrencies, if BTC can ever be money, how the economy will use cryptocurrencies, why blockchain is such an important economic topic. It seems we are on the brink of a new technological revolution. Blockchain-based solutions can bring significant benefits in many sectors of the economy: banking, energy, transport and foreign trade.
In order to dispel many different doubts and join the global debate, five scientific articles dealing with the above-discussed issues have been published in this issue. I hope that these works will interest you, and we will take part in the academic discussion.