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Blockchain Technology

bank accounts. Japan, on the other hand, is shaping its policies in line with the goal

of becoming Asia’s cryptocurrency centre. In Japan, Bitcoin has been accepted as a

legal payment instrument since April 2018. In addition, cryptocurrency exchanges

can operate by registering with the Japanese Financial Services Authority.

2.7  ADVANTAGES AND DISADVANTAGES

OF CRYPTOCURRENCIES

Whether cryptocurrencies will be accepted as money will be based on the evalu­

ation of their returns and disadvantages as a result of rationality. Relevant market

actors will evaluate the advantages of cryptocurrencies for themselves and compare

them with their disadvantages. As a result, they will make a choice according to the

total benefit of the use of cryptocurrencies. At this point, the prominent advantages

and disadvantages of cryptocurrencies are very important (Hurlburt & Irena, 2014;

Vigna & Casey, 2016; Troster et al. 2018; Smales, 2018; Weaver, 2018; Bruno &

Gift, 2019).

2.7.1  Advantages

2.7.1.1  Security

A secure payment system is required in order to maintain healthy economic activi­

ties. Cryptocurrencies are based on blockchain technology that works with cryptol­

ogy. Since mathematical methods and encryption are used in cryptology, information

security is provided in this way, thus protecting both sender and receiver.

2.7.1.2  Limited Supply

In the traditional system, the source of a crisis is defined as short-sighted monetary

policies or excessive expansionary fiscal policies. When cryptocurrencies start the

first supply, it is clear how much will be supplied in total. The fact that the supply of

cryptocurrencies is certain increases its predictability and eliminates the possibility

of causing inflation.

2.7.1.3  Decentralization

Cryptocurrencies are not connected to a centre. Therefore, they are not subject to the

rules of any state, bank or institution and cannot be directed. This advantage will

enable the cryptocurrency market to maintain its stability once it becomes stable,

regardless of external factors and political developments.

2.7.1.4  Low Costs

The fees and cuts made in money transfer reach very significant amounts for com­

panies and become a major source of cost. It is possible to perform money transfer

transactions with cryptocurrencies at much lower and sometimes zero costs.

2.7.1.5  Fast Transactions

Traditional payment systems can cause quite a waste of time when transferring

money. Payment transactions or money transfers can sometimes take days. With