კონფერენცია

∘ Malkhaz Chikobava ∘
THE GLOBAL ECONOMIC CRISIS AND ALTERNATIVE MONEY

Summary

In the article we are talking only about this aspect of experience, like the creation of alternative money. Today, more and more often we hear such new words as "crypto-currency", "digital money", "virtual currency", "electronic money", "bitcoins", "electronic wallets", "block money", "alternative money", "Network money ", etc. A few years ago a very narrow circle of people used such a lexicon - mathematicians, programmers, specialists in payment and communication systems, cryptographers from banks and special services.

New crypto-tools are called "currency", "money". However, this is an obvious exaggeration. The main function of any money is a "measure of value," with the help of money, prices for goods, services, assets, labor, etc. are determined. Even modern official currencies do not perform this function well, because the world has a paper-money standard, and currency rates "walk".

Similarly, it is doubtful that the crypto-currency would perform such a monetary function as a "means of exchange" and a "means of payment". Numerous examples of how the crypto-currency is used to buy goods and services – is from the category of advertising. The lion's share of all transactions using crypto-currency is exchange for other currencies. Given the sharp fluctuations in the rate of the crypto-currency, one can confidently say that these are purely speculative transactions. So, crypto-currency is not money, but a gambling tool,like roulette or playing cards.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Malkhaz Chikobava ∘ THE GLOBAL ECONOMIC CRISIS AND ALTERNATIVE MONEY Summary In the article we are talking only about this aspect of experience, like the creation of alternative money. Today, more and more often we hear such new words as "crypto-currency", "digital money", "virtual currency", "electronic money", "bitcoins", "electronic wallets", "block money", "alternative money", "Network money ", etc. A few years ago a very narrow circle of people used such a lexicon - mathematicians, programmers, specialists in payment and communication systems, cryptographers from banks and special services. New crypto-tools are called "currency", "money". However, this is an obvious exaggeration. The main function of any money is a "measure of value," with the help of money, prices for goods, services, assets, labor, etc. are determined. Even modern official currencies do not perform this function well, because the world has a paper-money standard, and currency rates "walk". Similarly, it is doubtful that the crypto-currency would perform such a monetary function as a "means of exchange" and a "means of payment". Numerous examples of how the crypto-currency is used to buy goods and services – is from the category of advertising. The lion's share of all transactions using crypto-currency is exchange for other currencies. Given the sharp fluctuations in the rate of the crypto-currency, one can confidently say that these are purely speculative transactions. So, crypto-currency is not money, but a gambling tool,like roulette or playing cards.