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Blockchain and Cryptocurrency

as the digital representation of value that can be stored or sold, accepted as a medium

of exchange by individuals and transferred electronically, but there is no central bank

or public authority behind it, and it is not linked to a fiat currency. Cryptocurrencies,

as the name suggests, are coins created with cryptographic encryption methods.

Within the scope of the security provided by the encryption methods used, it is not

possible to imitate, use and create illegal cryptocurrencies (Coron, 2006; Urquhart,

2016; Vigna & Casey, 2016; Garratt & Wallace, 2018).

2.4  COMPARISON OF CRYPTOCURRENCY AND MONEY

One of the important focuses of cryptocurrency discussions is whether cryptocur­

rencies are really money. In this respect, the easiest and most effective way is to

look at cryptocurrencies in terms of the features and functions of money (Howells &

Bain, 2008; Griffith, 2017; Vigna & Casey, 2016).

When money is mentioned, six different features come to mind: Portability, dura­

bility, divisibility, homogeneity, non-imitation and stability. In terms of portability, it

can be said that cryptocurrencies can be transported more easily than money, since

they are in a format that can be integrated into all mobile devices by using them in

a digital environment. Money can deform over time due to its physical nature and

use. However, cryptocurrencies are not physically minted and used. In this way, it

can be said that cryptocurrencies are more durable than money. It can also be said

that cryptocurrencies are more advantageous in terms of divisibility features. While

cryptocurrencies have the ability to be divided into one cryptocurrency in a hundred

million, this is not possible with money. From the point of view of the non-imitation

feature, it is clear that imitation of cryptocurrencies produced with cryptographic

encryption is more difficult than it is with money. In terms of the features of money,

the most controversial issue is the ability to maintain its value over time, namely,

stability. As stated before, there are many cryptocurrencies, and their values are very

volatile. It is not yet possible to talk about a mature and stable process. The value

of a cryptocurrency may clearly decrease or increase due to external effects. At this

point, it is not yet possible to say that cryptocurrencies are superior to any money.

Money has three basic functions: A medium of exchange, a unit of account and

a store of value. In daily economic life, money is widely accepted as a medium of

exchange and used in return for the purchase of goods and services. Although it is

a fact that cryptocurrencies are used more in the purchase of goods and services

in the real economy than when they first appeared, this is far from saying that it is

generally accepted. The fact that cryptocurrencies have not yet reached legal status

and have high volatility limits the use of cryptocurrencies in the sale and purchase

of goods and services by consumers and sellers. In this respect, it can be said that

cryptocurrency has come a long way towards becoming a medium of exchange, but

it is not yet a generally accepted medium of exchange. The second function of money

is as a unit of account. This function enables the comparison of the relative values

of goods and services by using money as a common unit of measure in the purchase

and sale of goods and services. At present, the wide variety of cryptocurrencies and

their very variable values make it very difficult to use them as a unit of account. In