Multiparametic Forecast Model with Variable Cryptocurrency Capitalization Assessment Framework

Abstract

One of the main directions in the development of the digital economy is Industry 4.0 in industry and Fintech in the financial sector. Financial institutions are second only to telecommunication companies in the implementation of information and communication technologies. The introduction of innovative digital technologies contributes to the formation of new forms and tools of conducting business, opening new horizons for economic development. One of such innovative tools in the financial sector, based on digital technologies, is cryptocurrency, which has become one of the breakthrough areas in the field of electronic payment methods based on blockchain technology and innovative cryptographic protection technologies. The paper considers the basic concepts and principles of the establishing of an innovative means of payment - cryptocurrencies, analyzes the stages of development of this legal tender and classifications of the existing digital money, and conducts a financial analysis of the main parameters of the global cryptocurrency market that has been formed as of today. One of the main issues in the economic sphere is the issue of effectiveness of a financial instrument, the cryptocurrency capitalization inter alia. The question to what extent this or that cryptocurrency will become a promising investment tool is currently one of the most relevant. In this regard, the article presents and analyzes a multi-parameter predictive econometric model that defines the main parameters affecting capitalization of cryptocurrencies. Based on the study, further prospects and trends of the development of cryptocurrencies, the possibility of their integration into the existing global payment system are analyzed.