Abstract:

Money serves as a medium of exchange, as a store of value, and as a unit of account. Money has been used in many ways in history. Money evolved from the barter system to the commodity monetary system later into the fiat money system and today we are witnessing the introduction of digital currencies in our lives. Digital currencies are the latest stage in the evolution of money, and this has been possible by technology. Digital currencies are created to work as a medium of exchange which uses cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency. This study examines the development of cryptocurrencies in the evolution of money. In this context, after explaining the evolution of money in the introduction, the free banking system will be focused on in the second part. The study will try to explain the Blockchain technology and the cryptocurrency system via comparative analysis method, respectively, in the third and fourth parts. Finally, the study ends up with the conclusion and discussion part.

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