Identification of the Variables Effecting the Value of the Cryptocurrency

Authors : Necip İhsan ARIKAN

Pages : 27-34

Doi:10.23834/isrjournal.842649

View : 17 | Download : 11

Publication Date : 2021-02-20

Article Type : Research Paper

Abstract :Technically cryptocurrencies often have Distributed Ledger Technology insert ignore into journalissuearticles values(DLT); and encryption based on infrastructure called blockchain that allows all nodes to verify the validity of a transaction. In terms of monetary theory, cryptocurrencies are currently the most developed virtual currencies that cannot perform all the basic functions of money such as the account, exchange and capital accumulation.The price of cryptocurrency is based on supply and demand, without an intervention of a central authority. Dynamics that affect the value of cryptocurrencies can be classified as internal and external variables. The internal dynamics of cryptocurrencies have been examined under the headings of economic infrastructure and technological infrastructure. External factors that are effective in determining the value are observed as popularity, security, volume, inflation, tax, crypto exchange accidents, perception, speculations / manipulations and news.
Keywords : cryptocurrency, Bitcoin, blockchain