Virtual assets in the context of global economic instability

Abstract

Virtual assets, such as crypto-currencies, have become the object of significant interest in the conditions of global economic instability, when people are looking for alternative investment opportunities and means of saving funds. One of the reasons for the growing popularity of virtual assets in such conditions is their independence from traditional financial markets and the potential for diversification of the investment portfolio. In times of economic instability, such traditional assets as stocks and bonds can be highly dependent on market fluctuations. Instead, virtual assets can be a way for investors to preserve their funds and even make a profit. At the same time, the market of virtual assets is extremely risky. It is known for its volatility, which can lead to significant losses for investors. Therefore, the investment strategy, which provides for the distribution of assets to reduce risk, is optimal in conditions of economic instability. Virtual assets can play an important role in diversifying an investment portfolio, reducing overall risk, as these assets can respond to market events independently of traditional assets. The aim of this research is to determine the possibilities of using virtual assets in conditions of global economic instability. General scientific and special methods are applied: observation, description, comparison, analysis and synthesis. Data on prices of virtual assets and stock indices in online environments TraadingView and CoinMarketCap were used. The benefits of using virtual assets based on blockchain technology (using bitcoin as an example) in conditions of global economic instability are considered. A comparative analysis of the price of bitcoin with leading stock indices affecting the global economy was carried out. The main advantages and disadvantages of using virtual assets as investment tools and the prospects for their use in this area are determined.