An Assessment on the Use of Blockchain and Cryptocurrency

Blockchain technology is a system which a variety of validation/authentication and verification operations are performed via computers connected to a network without the contribution of official institutions. The blockchain technology and cryptocurrency that emerged in the 21st century have turned into investment tools rapidly. Considering the history of the money, this research tries to examine the cryptocurrency which has come into use with blockchain technology. Cryptocurrencies gain strenght depending on people’s trust, on the other hand traditional currency gain strenght from the state that put them on the market. In this study, strengths and weaknesses of cryptocurrency are examined and it is investigated if it may be used as a traditional currency in the future. It is known that even though it is a currency, cryptocurrency is used more like an investment vehicle. It is observed that as long as people continue to trust this currency, cryptocurrency will continue to exist with rises and falls in the value, but if the currency loses trust and credibility it is determined that it will not exist anymore