21

Blockchain and Cryptocurrency

cryptocurrencies, money can be transferred to the desired location in an unlimited

and fast manner every day of the year.

2.7.1.6  Confidentiality

Even if transactions and amounts are open, people are hidden by their wallet

addresses. Cryptocurrency does not have to be linked to any name or company.

Thus, the tracking of money transfers is prevented, and the possibility of states seiz­

ing the money of individuals and institutions is eliminated.

2.7.2  Disadvantages

2.7.2.1  Extreme Technology

The cryptocurrency system is one of the most technological inventions of this age.

For a large number of people who cannot easily give up their habits, using cryptocur­

rencies is very difficult due to the extreme technology involved. In addition, by their

very nature, it will not be possible to compensate for possible errors due to irrevers­

ible transactions. This situation again discourages some people.

2.7.2.2  Digital Transformation

A major digital transformation is required for cryptocurrencies to be widely used in

the system. It is obvious that after the system becomes operational, it will provide

significant savings, but the costs of establishing the system are a deterrent. The most

important deficit at this point is that there are not yet enough human resources in

this area.

2.7.2.3  Private Keys

Access to cryptocurrencies is possible with the private keys given to the owner. It is

the owner’s responsibility to keep these private key passwords. Losing a private key

means losing that cryptocurrency. It is not possible to reach that money by any other

way or method.

2.7.2.4  High Volatility

Volatility can be defined as sudden price movements in the markets. The fact that the

cryptocurrency market has a constantly fluctuating rate and a situation that is vulner­

able to any kind of decline and increase at any time is shown as the biggest obstacle

to the general acceptance of cryptocurrencies.

2.7.2.5  Lack of Legal Status

Cryptocurrencies are not accepted as legal payment instruments in many countries.

The lack of legal status makes it impossible to claim a legal solution to the problems

that may arise.

2.7.2.6  Illegal Affairs

Not knowing the identity of the parties in transactions and not being able to track the

transfers provides a suitable environment for the use of cryptocurrencies in illegal

activities.