The goal of this paper is to make an analyiss of cryptocurrency history and transformation of money and finance. Digitalized assets, innovative financial instruments and systems produce new channels for financial transactions. In the last few years a high adoption rate of cryptocurrencies among end users has been noted with market capitalization of over billion american dollars and over one milion virtual wallets. Also, cryptocurrency industry is present globally as well as locally, without borders for transaction exchange, The industry is becoming more and more fluid which results in a much thinner line between stock exchanges and virtual wallets. Bitcoin isn't the only cryptocurrency, other alternative cryptocurrencies with specific uses are growing in the eco-system. The question of security and accordance to laws will most likely not be brought into focus in the upcoming future. Unlike traditional currencies which are supported by natural goods, cryptocurrencies are entirely virtual. Cryptocurrency is woven into a blockchain which represents a record of all transactions. This enables elimination of middlemen (banks) because all users together form a bank.