UNDERSTANDING OF CRYPTOCURRENCY: A THEORETICAL PERSPECTIVE.

Abstract

Cryptocurrency has emerged as a disruptive innovation in the global financial system by enabling decentralized, peer-to-peer, and borderless transactions through blockchain technology. Since the introduction of Bitcoin in 2009, cryptocurrencies have challenged traditional banking mechanisms by eliminating intermediaries and enhancing transaction transparency. This theoretical paper aims to examine the conceptual meaning, evolution, functioning, and technological foundation of cryptocurrency, with a specific focus on blockchain technology. Drawing insights from existing literature, the study highlights the advantages and disadvantages of cryptocurrency adoption, including efficiency gains, decentralization, volatility, regulatory uncertainty, and security concerns. The paper contributes to the academic understanding of cryptocurrency by consolidating theoretical perspectives and providing a structured foundation for future empirical research in the fields of commerce, finance, and management.