Bitcoin and cryptos. Cryptocurrencies, which came to the world’s agenda in 2007, are stored in electronic ledgers called blockchain or, if desired, in virtual wallets and can be bought and sold on cryptocurrency exchanges. Today, there are near 13.000 altcoins. The total value of the cryptocurrency market with 543 exchanges reached 3 trillion dollars in November 2021. The market’s decline to 800 million dollars in January 2022 caused concern among savers and central authorities.
The largest share in the cryptocurrency market belongs to Bitcoin with 38%. Bitcoin and Ethereum, which have a large weight in the market, represent 57% of the market. The share of other cryptocurrencies Tether is approximately 6%, while the share of USD Coin and BNB is 4%.
Main cryptocurrency exchanges that provide buying and selling services of cryptocurrencies work with a membership system. In order to trade on these exchanges, an account must be opened. After becoming a member, you need to open a Turkish Lira current account at any bank in Turkey or transfer money to the platform from contracted payment institutions. Thus, members can buy and sell on the stock exchange in return for commission.
Transacting in the cryptocurrency market is very risky. As a matter of fact, some companies in the crypto market fell into a payment crisis and were on the verge of bankruptcy. Luna’s collapse caused a loss of approximately $45 billion in the market. The losses of companies that could not provide sufficient liquidity reached irreparable levels. Likewise, the US Federal Reserve’s interest rate increase and the crypto decline that has continued since November have increased the companies’ chances of loss. Companies such as Celcius, Voyoger Digital and Three Arrows Capital (3AC) declared bankruptcy.
Increasing geopolitical risks and energy tensions, as well as restrictions and disruptions in payment systems, continue to feed the unregistered cryptocurrency market. The use of non-dollar payment instruments, especially digital Yuan, and the use of alternative systems bypassing the dollar in other countries’ economies after the pandemic may create a breaking point. New opportunities such as inimitability, ownership and ownership provided by Metaverse and NFTs rather than cryptocurrencies seem to create a new revolution in payment systems.
Cryptocurrencies, which first entered our lives with Bitcoin in 2007, are virtual currencies produced by computers as a digital, encrypted virtual currency and exchanged and transferred digitally. Cryptocurrencies are stored in electronic ledgers called blockchain or, if desired, in virtual wallets and can be bought and sold on cryptocurrency exchanges.
Today, with nearly 13,000 altcoins and 543 exchanges, the cryptocurrency market continued to grow and expand uncontrollably in the January 2021-2022 period. As a result of the risk and volatility that emerged as a result of this lack of control, the market’s total value, which reached 3 trillion dollars in November 2021, decreased to 800 million dollars in January 2022, creating concern for savers and central authorities.
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