Time and Bitcoin

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23 Jan 2024

Time is Money

Time is MoneyThe aim of this study is to conceptually and theoretically examine the structure of the Bitcoin monetary system, which is a cryptocurrency, after presenting the conceptual framework of crypto money.

ABBREVIATIONS

ARDL Autoregressive Distributed Delay
BTC Bitcoin
DASH Dash
ETC Ethereum Classic
ETH Ethereum
Gox Bitcoin Exchange
LTC Litecoin
MAID MaidSafeCoin
P2P Peer to Peer
STEEM Steem
USD American Dollar
Etc. And such
et al. And others
XEM HUMIDITY
XRP Ripple

Keywords: Virtual (Crypto) Money, Bitcoin, Financial Markets

ENTRANCE

The concept of virtual money, which first emerged in 2008, was used for states and individuals. There has been a significant development. Different information about the emergence of the virtual currency system There are opinions. The most accepted of these views was after the 2008 global crisis. virtual money as a result of the loss of financial confidence in financial markets and states system has emerged and its popularity has gradually increased. In this context, cryptocurrency Bitcoin is the most used virtual money system and is popular all over the world. analysis is of great importance. Therefore, this research has theoretical In this regard, it is aimed to fill the gap in the literature in this field. It is expected to make a significant contribution.
Therefore, it is very important to conduct a study on revealing the appearance of the Bitcoin ecosystem, which is an example of the concept of virtual money. In the study, after presenting the conceptual framework of cryptocurrency, the structure of the Bitcoin monetary system, which is a cryptocurrency, is examined conceptually and theoretically. In this study, after giving a theoretical conceptual framework, Bitcoin money is analyzed by scanning national and international literature. This study is a general examination of the Bitcoin money ecosystem; It is examined in three parts under the main headings: 'The Theoretical Framework of the Concept of Virtual (Crypto) Money', 'Cryptocurrencies' and 'Cryptocurrency Example: Bitcoin and Its Place in the Financial Sector'.
In the first part of the study, the concept of virtual money, its features, The classification and legal framework of virtual money are examined. In this chapter Historical processes of what crypto money is, how it emerged, why it spread rapidly discussed in detail in the light of Again, their features, how many classes they are collected in and The approach of the countries has been examined in detail within the scope of the legal dimension.

In the second part, Cryptocurrencies are mentioned and widely used in the market. Information is given about the first three cryptocurrencies and other currencies are An explanation has been made about (altcoins). In addition, the Bitcoin monetary system Information on its structure and usage is given. What kind of virtual money is Bitcoin? In detail what kind of system (Blockchain) it works with and where and how it is used. It is discussed. Finally, the advantages and disadvantages of virtual money are discussed.

In the third part of the study, the Bitcoin ecosystem is discussed in detail under four headings. It is examined as. First, national and international studies on Bitcoin studies are analyzed. Later, the general trend of crypto money in Turkey What it looks like is revealed. On another topic: Bitcoin After examining in detail the sectors most affected by the ecosystem Finally, Bitcoin's position in the financial sector was evaluated.

In the conclusion section of the study, the findings obtained in this study are summarized. and in this context, suggestions have been made regarding the importance of the Bitcoin ecosystem.

1. THEORETICAL FRAMEWORK OF THE CONCEPT OF VIRTUAL (CRYPTO) MONEY

The concept of cryptocurrency, which has been understood in recent years, is a new alternative for everyone. becomes a tool of change. Contrary to the classical understanding of money as a medium of exchange, The digital economy has started to attract people's attention. Therefore, this new structure With its many risks, recently gained by crypto lenders high returns, aiming for cryptocurrency and thus getting higher returns It has guided investors looking for new investment products. But with this concept The biggest problem with this is that in many countries there is no effective solution for these digital currencies. is the lack of regulation. Therefore, both against virtual currencies There are trust problems in both investors and normal users.
In addition, cryptocurrencies are made of precious metals or government reputation. source, but its users accept it as a medium of exchange or commodity It stems from the fact that it sees itself as. Thus, the value of cryptocurrencies, As with other currencies and commodities, instantly changing supply and It is determined according to the demand conditions.
In fact, with the emergence of cryptocurrencies, the new economic structure It was formed because the economy, in its simplest sense, operates at local, national and international levels. It is defined as a structure consisting of producers, distributors and consumers. Crypto With the currency, the newly formed economy brings together virtual money producers and users. It is expressed as a network of companies serving the markets they come from. is done. In this context, in this part of this thesis study, the concept of cryptocurrency is discussed. Its conceptual framework is given because the cryptocurrency discussed in the second section An infrastructure to better understand and comprehend Bitcoin, which is constitutes.
In other words, blockchain allows encrypted transaction tracking, each information is processed in blocks and with advanced encryption algorithms and transferred to a center. It is a distributed database that allows them to be connected to each other without being connected. One block chain is expressed as a data structure that represents an account transaction record and It is signed securely and virtually. These account transactions are transmitted over a network. is taking place and there are constant updates. The system is a single with a centralized and complex security network without the need for central control It works safely and quickly. Blockchain is not just about money flow, It is also used in many systems because it is fast, secure and easy to monitor. It provides convenience at three basic points.

Firstly, it is low cost and fast without the need for any intermediaries. processing
Secondly, the possibility of corruption is very low due to the lack of central control is happening.
Finally, ease of monitoring and control in the transfer of assets is at the highest level. provides control.

Blockchain technology is not only associated with cryptocurrencies, but In many areas that require technology infrastructure, especially in areas such as banking, there is a high It is known to be used as a reliable system.
Blockchains are essentially a system-wide system of all digital events or transactions. It is a database where it is stored and distributed by its participants. block chains, It is distributed in an encrypted form that allows transaction tracking. All users connect to the network, such as sending new transactions, verifying transactions, and creating new blocks. can perform transactions. Clustering, that is, blockchain technology, decentralization creation of decentralized currencies, digital contracts in force (smart contracts) and smart assets that can be controlled over the Internet (smart property), It is a technological genius that makes this possible.
Five main principles underlying blockchain technology is the subject. These:

Distributed Database:Each user in the blockchain has access to all data. can reach its base and history. No user only data or does not control the information. All users can trade without intermediaries. It can directly verify the records of its partners.
Peer-to-Peer Transmission:The contact center is peer-to-peer rather than a direct network. is happening. Each network stores and transmits information to all other networks. transmits.
Transparency:Every transaction and related values are available to anyone with access to the system. can be seen by. Both nodes and nodes in a blockchain The user has an alphanumeric character consisting of more than 30 characters that represents him/her. addresses are available. Users choose to remain anonymous or identify themselves It is left to their own choice whether to disclose it to others. Transactions block chain addresses.
Records that are not refundable:Once a transaction is entered into the database and Records cannot be changed after the accounts are updated. This process the term "chain" because it is linked to all transaction records that come before them is derived from here. Records in the database in a built-in way organized chronologically and made available to others on the network. Various computational algorithms and approaches to present is used.
Computational Logic:Digital nature of master records, blockchain Ability to program the calculation logic of operations lies. Therefore, users can perform transactions between nodes. It can create automatically triggering algorithms and rules.

Reliable and Accessible:Since it is used by a large number of participants It does not contain any failure points. Against interruptions and attacks It is designed to put .
Transparent:Blockchain transactions are visible to all participants is controlled and this increases control and trust.
Constant: Making changes without detecting blockchains is almost It is impossible. This increases the reliability of the information carried and reduces the possibility of fraud.
Digital:Almost all assets and documents can be encrypted and can be restricted or displayed as a book record.

The most important feature of blockchain technology is a decentralized identity It has a verification system. In this regard, the most effective of digital transformation It has been shown to be one of the areas. Able to act as a digital record store Blockchain consists of evidence and records of instruments and valuables, birth, marriage and in a wide range of areas, from the collection and execution of death certificates to It is a valuable technology that can be applied. Additionally, blockchain technology It provides users with unprecedented control over individual users. This Therefore, blockchain, a globally open ledger, is not just a crypto mine. not only in money production, but also in many different areas such as storage and management. is used. The ability to provide digital identity makes it possible to trust the economy He makes the key.

Cryptocurrencies that emerged and were implemented in a short period of time have Although their characteristics cannot be given in their entirety, some of their main characteristics It can be said that it is. In this context, all cryptocurrencies are known and Common features that are considered important are as follows.

In fact, there are countries where cryptocurrency is legal. USA, most Although America is the country with the most crypto currencies and users, accepts currency legally. Many countries believe that the USA uses this system the results of their attitudes and approaches towards legalization and regulation is watching. According to the attitude of the USA, many countries are interested in the cryptocurrency market. plans to implement this system by making regulations. However, outside the USA; Australia, England, Algeria, Estonia, Finland, South Korea, Netherlands, Iceland, such as Sweden, Switzerland, Jamaica, Japan, Canada, Mexico, Nicaragua, Norway, Thailand countries accept and legally accept cryptocurrency. The number of countries that do so is increasing day by day. Illegal use of cryptocurrency systems The accepting countries are Bangladesh, Bolivia, Ecuador, Kyrgyzstan and Nepal. Additional As such, the European Union and its member states generally illegalize cryptocurrency. sees it as a system without.
Considering the legal status of cryptocurrencies in European Union countries taken, there are only 28 European Union countries to define these cryptocurrencies. Four of them recognize cryptocurrencies. 13 of the remaining 24 countries (Bulgaria, Ireland, Greece, France, Cyprus, Lithuania, Latvia, Hungary, Netherlands, Austria, Portugal, Romania, Slovakia) have no position on Bitcoin. does not take. Countries that legally accept crypto from European Union countries Germany, Estonia, Sweden and the United Kingdom.
There is no official regulation of the digital money system in Turkey. This situation causes the system not to be considered illegal. Türkiye, Banking It entered into force on 27.06.2013 by the Regulation and Supervision Agency. Electronic currency within the scope of Law No. 6493, by issuing digital money It obliges the fund corresponding to this money to remain in the account by keeping it constant and This situation is contrary to the functioning of the currencies of crypto money systems. Because government, cryptocurrency due to the risks that occurred on 25.11.2013 declared that their systems are not accepted as electronic money. This In this context, as a result of the report presented by the IMF in 2016, digital, virtual and It is concluded that the concepts of crypto money should be kept separate as types of electronic money. has been reached. As of today, licensed companies; Belbim, United Payment, CMT, D Payment is listed as Papara, Turkish Electronic Money and Wirecard. These companies, Instead of a new currency, a centralized, prepaid service similar to PayPal It offers these features and works differently from cryptocurrency models.
In other words, Turkish Currency Value Protection in terms of cryptocurrency It is observed that there is nothing in the law that prevents the use of virtual money. Law No. 1567 on the Protection of the Value of the Turkish Currency, Turkish Currency It covers the principles and sanctions envisaged in protecting the value of the unit. In this decision of the Council of Ministers, Turkish currency, foreign currency, precious metals, stones and goods, securities and real estate, loans, non-cash related to loans, guarantees regarding collateral, export and import regimes There are regulations. The decision includes an appropriate provision for the use of cryptocurrency. does not contain.