Assessing the global impact of cryptocurrencies

Abstract

Interest in cryptocurrencies is increasing day by day. Cryptocurrencies are increasingly known around the world as a mathematical-based encrypted digital and virtual currency that cannot be controlled by a state, company or authority, and uses the science of decentralized monetary system and cryptology. In an environment where a new crypto currency is announced every day, there are 7471 types of cryptocurrencies as of 21 October 2020. Although it has a history of only eleven years, it is important to investigate and discuss this issue, considering the transaction size, prevalence and diversity of this technological innovation. Cryptocurrencies are used in daily life and commercial activities as a means of payment for purchases of real or virtual goods and services. They are accepted by many international companies, and are traded in hundreds of clearing and exchange centers. In addition, considering that they have bidirectional convertibility with the currencies of many countries in circulation and they have reached a market size that grows up to 375 billion USD in total, the nature and importance of the business is evident. The study discusses the current state of the crypto money market, countries' attitudes towards cryptocurrencies and the global effects of crypto currencies. Bitcoin has set a new record for value on the exchange. According to the trading data, on February 9, 2021, the price of cryptocurrency exceeded $ 48 thousand.The reason for the new jump in the rate was the news of a large investment by Tesla: Elon Musk's company bought bitcoins for $ 1.5 billion.In the future, Tesla plans to accept bitcoin as a form of payment for goods and services. The publication of a financial report for the US Securities and Exchange Commission (SEC) instantly increased the value of cryptocurrency in the market by more than 10%. At its peak, Bitcoin has shown a 40% increase over the past week.