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Cryptocurrencies in the Digital Era: The Role of Technological Trust and Its International Effects

In: Blockchain Economics and Financial Market Innovation

Author

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  • Serif Dilek

    (Kırklareli University)

Abstract

Due to the lack of trust as a result of the 2008 global financial crisis, the leading cryptocurrency, Bitcoin, is increasingly thought of as an alternative to the prevailing financial architecture by presenting a technologically more trustworthy alternative. Because of the effect it had due to its number of users, volume, and market size, Bitcoin attracted the attention of the whole world. By using blockchain technology and mining, Bitcoin attempts to replace the services based on trust and the mediation role offered by banks in the traditional finance system. With its characteristics such as low cost, fast transaction times, and low risks, Bitcoin first emerged in 2008 and since then, due to these characteristics, has triggered an important change and transformation. The fact that Bitcoin is used for speculative investment motives, and that the energy used for its mining is made up of conventional energy sources brought a debate about the sustainability and environmental effects of this system. This article evaluates the evolution of money in the era of digital transformation and the repositioning of cryptocurrencies with a focus on Bitcoin. The study analyzes the global effects of blockchain technology and cryptocurrencies, and the risks, opportunities and environmental effects of mining.

Suggested Citation

  • Serif Dilek, 2019. "Cryptocurrencies in the Digital Era: The Role of Technological Trust and Its International Effects," Contributions to Economics, in: Umit Hacioglu (ed.), Blockchain Economics and Financial Market Innovation, chapter 0, pages 453-474, Springer.
    • Handle: RePEc:spr:conchp:978-3-030-25275-5_22
    DOI: 10.1007/978-3-030-25275-5_22
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    References listed on IDEAS

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