Cryptocurrencies: They´re really that lucrative?

University of Zilina, Faculty of Operation and Economics of Transport and Communications, Univerzitna 1, 010 26 Zilina, Slovakia

^* Corresponding author: roman.blazek@stud.uniza.sk

Abstract

Research background: Cryptocurrency is a digital currency that is intended for online trading. It uses and implements the principles of cryptography to create a distributed, decentralized and secure digital currency. Virtual money is a new and promising branch of the virtual economy that brings many advantages and disadvantages in a global sense. Many people have become involved in cryptocurrency hype because high investments in this digital money have been seized during the pandemic. The rise in revenues from this digital money has gripped the world globally.

Purpose of the article: The basic purpose and chosen goal is to analyze the use of cryptomen trading during the global Covid-19 pandemic, as well as investing in these alternative sources of investment, which are gaining more attention every day precisely because of their freedom and detachment.

Methods: The article will analyze data that will be compared based on the years before the Covid-19 pandemic and during the Covid-19 pandemic. Based on these data, the investment activity of people, companies, corporations is compared.

Findings & Value added: Based on the results in the article, it was found that during the Covid-19 pandemic, the interest in investing in cryptocurrencies increased compared to the interest in investing in cryptocurrencies before the pandemic. The overall result is that people are moving to a new way of holding money, as cryptocurrencies are a new way to the future, as banks are unable to provide such returns from client deposits as cryptocurrencies, but they are associated with much greater risk.