Abstract:

Purpose- The first cryptocurrency, Bitcoin, was launched on January 3, 2009 and has allowed the creation of many crypto assets until today. Bitcoin, which is considered the father of cryptocurrencies, is limited to 21 million by specifying the maximum number that can be produced in the genesis block. Bitcoin, which has a more stable market value thanks to the large market and transaction volume it has acquired today, has turned into a virtual currency used by much more people than in the past. This study aims to provide information about the large financial system created by bitcoin and other cryptocurrencies, as well as to develop new perspectives on how this new financial system can follow in the future. In addition, it is a preliminary study that can be used as a resource in the future on this field. Methodology- In this study, crypto assets, bitcoin and altcoins, which have been used for many years, are examined within the titles and their definitions, features and usage areas are mentioned. Afterwards, the advantages and risks of blockchain technology are discussed in terms of countries, and the approaches of countries towards cryptocurrencies are examined. Finally, the legal regulations that are expected to be taken in this area are given. Findings- Crypto assets are becoming virtual assets that can take over the exchange activity, replacing classical money over time. The listed companies in the markets where these assets are traded charge a very low commission amount in return for the exchange transaction. As a result of this advantage, crypto money holders can keep the chance to trade the assets they have in their wallets at any time. Although its legal basis has not yet been established, crypto assets are increasing in demand due to their positive aspects such as low transaction costs, easy transfer and high earnings rates. Conclusion- As a result, cryptocurrencies have turned into virtual assets that are heavily traded for investment purposes today. Although it has many positive aspects, the fact that its legal foundations have not been laid negatively affects the trust in these assets. These assets, whose current market value has reached 1.7 trillion dollars, have been accepted in international markets and have started to attract attention especially in their states. For this reason, while many states around the world have accelerated the infrastructure work for cryptocurrencies, El Salvador has broken new ground and declared Bitcoin the official currency with the bill passed by the Senate on June 6, 2021.

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