The great financial and economic crisis of 2008 due to its inadequate regulation resulted in the collapse of the US banking system, leading to global distrust in existing financial instruments and the financial system. One solution to the global crisis was the introduction of cryptocurrencies. In 2009 the first cryptocurrency bitcoin was introduced. Despite new and evolving cryptographics, bitcoin remains the most popular electronic payment. As digital money, cryptocurrencies exist in encrypted form of the so-called digital wallet. Designed as a means of digital exchange, cryptocurrencies are meant to replace existing payment systems and ultimately improve the implementation of financial transactions. Cryptocurrencies differ greatly from all existing forms of money: they are decentralized and anonymous. However, as the cryptocurrencies have not yet fully taken root as a medium of exchange, nor do they fulfill the function of a measure of value, their issuance is not within the competence of central banks. The question arises as to whether they can be defined as money at all. This paper explains the basic determinants of cryptocurrencies with special reference to bitcoin as the oldest and most common cryptocurrency. Furthermore, the legal regulations in this area and the presence of cryptocurrencies are analyzed, with all positive and negative sides of possession and trading of cryptocurrency. Finally, based on the obtained knowledge from the available scienetific and professional sources, as well as subjective assessment, this essay aims to indicate the development of cryptocurrencies in the future.