Bitcoin and political implications of the crypto-currencies

Abstract

The article focuses on analyzing Bitcoin, its crucial features and applications of crypto-currencies in the context of political consequences. These kinds of instruments have value and their role as a means of payment has been constantly increasing. The attempts to use crypto-currencies by countries that actively try to take advantage of their specific functions and mechanisms is noticed. One of the particular areas of activity aims to bypass economic sanctions. In this situation, the following actors, such as Venezuela, Iran, North Korea, and Russia may be pointed out. As an addition to activities directed at avoiding sanctions, there are also projects of creating crypto-currencies by the state. In essence, these actions are supposed to improve the economic situation of particular actors. Crypto-currencies also bring challenges which are related to the processes of functioning of the state. Law and security are the main areas in this regard.