CRYPTOCURRENCIES' IMPACT ON TRADITIONAL CAPITAL MARKETS : Final paper

U ovom je radu obrađena tema utjecaja kriptovaluta na tradicionalna tržišta kapitala. Na samom je početku rada definiran predmet i cilj rada, te znanstvene metode koje će se kroz daljnji tekst primjenjivati. Radi boljeg razumijevanja funkcioniranja kriptovaluta, prvenstveno su opisani ključni pojmovi i koncepti vezani uz njihov rad. Sukladno tome, u radu se govori o tehnologiji lanca blokova, te decentralizaciji. Nakon danih definicija, u radu su detaljno objašnjene kriptovalute, kao i njihove karakteristike. Zatim, prikazane su trenutno najzastupljenije kriptovalute s obzirom na tržišnu kapitalizaciju, te pobliže opisane tri najpopularnije kriptovalute, a to su Bitcoin, Ethereum i Litecoin. Nadalje, spominju se tokeni, inicijalna ponuda tokena ili kriptovaluta, te stabilne kriptovalute. U sljedećem je djelu rada definirano tržište kapitala, objašnjeni su glavni predmeti te sudionici trgovanja na istom. Zatim je opisana međupovezanost tržišta kapitala i tržišta kriptovaluta. Istaknuto je kako prije pojave kriptovaluta, tržište kapitala nije imalo značajnog konkurenta. Oba tržišta dijele temeljne funkcije i pretežito iste aktere, no tržište kriptovaluta definira decentraliziranost te nereguliranost od strane središnje vlasti. Na posljetku se donosi zaključak kako unatoč sličnosti i povezanosti ova dva tržišta, tržište kriptovaluta ipak je relativno novo i nedovoljno istraženo. Stoga, nije još moguće iznositi zaključke o utjecaju jednog tržišta na drugo.This thesis describes the impact of cryptocurrencies on traditional capital markets. At the beginning, the subject and aim of this paper are defined, as well as the scientific methods applied throughout the paper. Firstly, in order to understand the concept of cryptocurrenices, their key terms and inner workings are defined. In addition to that, the paper goes more into depth about blockchain and the decentralization that comes with cryptocurrrencies. Furthermore, the most popular cryptocurrencies, in regards to their market cap are listed, and the three most popular – Bitcoin, Ethereum and Litecoin are examined closer. Moreover, tokens, initial coin offerings and stablecoins are mentioned. The next part of the paper takes a closer look at capital markets, the venues where funds are exchanged between suppliers of capital and those in need of capital. Then, observations are made about the correlation between the crypto market and the capital market, seeing as prior to the emergence of cryptocurrencies, capital markets had virtually no competitors. Even though both markets share more or less the same principal functions and same investors, the crypto markets differs as decentralized and unregulated. In conclusion, while both markets are comparable and correlated, the crypto market is still relatively new and thus not researched well enough in order to make conclusion about the impact of one market on the other