Providing a deeper dive into effects of cryptocurrencies on financial markets. Moreover, goal is to present few definitions of cryptocurrencies, their development since the inception of the idea and introduction of Bitcoin. Also, to compare positives and negatives of cryptocurrency usage, and potential future outcomes based on used cases, incoming regulation, and behavior of investors. This topic is highly important because digital currencies are becoming a vital part of modern-day financing. With constant evolution of financial markets there is an everchanging development in the way we transfer funds, deal with our assets, as well as slight changes in definitions of terms such as money. Ever since 2008, and the creation of biggest digital currency Bitcoin, cryptocurrencies have been rapid rise in popularity, as well as price. Introduction of terms such as Bitcoin, cryptocurrencies, and blockchain have initiated a new era of financial management. Increased use and interest for virtual currencies have also brought up multiple regulatory issues, as well as overall benefits. For past 12 years there have been numerous researches digging into Bitcoin’s status as a currency, potential future usage by governments, different incentives of miners, among many others. Cryptocurrencies are now almost necessary part for developing projects, and many infant companies are trying to incorporate digital currencies as a part of transactions or products.