Complexity of selling products and services for cryptocurrencies
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Дата
2025-07-04
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Видавець
Alfred Nobel University
Анотація
Introduction. Cryptocurrencies are gaining popularity among individuals, businesses, and f inancial institutions. They are used for various purposes, particularly to pay for goods and services. Selling goods and services for cryptocurrencies can help companies attract new customers, increase sales, expand market share, and more. This article explores whether cryptocurrencies today function as a means of payment similar to fiat money, and examines the risks faced by companies that accept cryptocurrencies for goods and services. While cryptocurrencies are approaching the fulfillment of the economic functions of money, they have not yet fully reached this level. Nonetheless, in many countries, cryptocurrencies can be used to pay for goods or services, exchanged for other currencies, and more. In Ukraine, some companies sell household appliances, tickets, fuel, and other goods and services for cryptocurrencies.
Problem Statement. Cryptocurrency developers emphasize that it is an alternative, private form of digital money that is not issued by national governments or controlled by financial intermediaries such as banks. The National Bank of Ukraine notes that the complex legal nature of cryptocurrencies prevents them from being recognized as cash, foreign currency, electronic money, securities, or a monetary surrogate. Cryptocurrencies offer certain advantages over traditional money, such as reducing transaction costs. However, transactions involving cryptocurrencies also carry inherent risks.
Purpose. The study identifies the main approaches to organizing the sale of goods and services for cryptocurrencies. Additionally, the article aims to identify the risks associated with the sale of goods and services for cryptocurrencies and outline ways to minimize these risks.
Materials and methods. We employed various research methods, including historical and legal methods, which involve the study of the legislative framework surrounding cryptocurrency transactions, as well as the empirical method, which investigates different practices of selling goods and services for cryptocurrencies. This approach also helps in identifying the risks companies face when engaging in such activities. One of the primary risks associated with cryptocurrency transactions is significant fluctuations in their exchange rates, which can result in economic losses in the event of a sharp devaluation. To better understand the nature of the risks associated with using cryptocurrencies, we conducted a statistical analysis of fluctuations in the Bitcoin exchange rate and built a correlation model with other market indicators, such as the Nasdaq Composite index and the exchange price of silver, for the period from March 1, 2012, to February 29, 2024. Using the Group Method of Data Handling (GMDH), we identified a connection between Bitcoin’s value fluctuations and market indicators that differ in terms of technological orientation (Nasdaq Composite) and investment risk (silver).
Results. More and more countries are legalizing cryptocurrencies. In Ukraine, however, legislation regarding cryptocurrencies is still in development, and the sale of goods and services for cryptocurrencies is treated similarly to barter agreements. Depending on market characteristics and the specifics of their business, sellers of goods and services choose between directly selling for cryptocurrencies or using third-party intermediaries. This raises the question of what risks sellers face when accepting cryptocurrencies and how to mitigate or reduce those risks, such as the risk of sharp devaluation. Our model reveals a connection between Bitcoin’s exchange rate and other market indicators, such as the Nasdaq Composite index and the price of silver. However, the potential risks associated with using cryptocurrencies as a means of payment warrant further exploration. The lack of a clear regulatory framework and consistent definitions also introduces uncertainty in cryptocurrency operations. In practice, varying definitions of cryptocurrencies can create additional risks, particularly regarding the taxation of income received in cryptocurrency. Therefore, selling goods and services via intermediaries and converting cryptocurrency into fiat money can help mitigate legal, financial, and tax risks for companies. Additionally, governments play a crucial role in improving the regulatory framework for cryptocurrency transactions.
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Ключові слова
cryptocurrency, payment tokens, virtual assets, means of payment, payment for goods and services, криптовалюта, платіжні токени, віртуальні активи, платіжні засоби, оплата товарів і послуг