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THE RISING INTEREST FOR CRYPTO CURRENCIES

THE RISING INTEREST FOR CRYPTO CURRENCIES

Virtual money/ virtual currency refers to a payment instrument that has its own unique account unit that is not tangible, physical, and is used in electronic trading. While the electronic currency is the currency known in the market (Dollar, Euro, Turkish Lira …), the currency of virtual money is different from those and is determined by the creator of the money. It is the subdivision of legally regulated electronic currency but unlike it there is no legalization or regulation for the virtual money. Not only certain centers but also private individuals can produce virtual money.

When we say virtual money, first of all the ‘bitcoin’ comes to our minds, one of the cryptographic virtual currencies, whose value goes up against the dollar and other currencies day by day, comes out. The subdivision created by mathematical encryption of virtual money is called crypto money.

The production is called mining, and the producers are called miners. It is a complex process that can not be done on every computer, and super computers are needed, 500 super computers compete with each other as far as we know.

For the last months, there is a huge interest rising among youngsters in Turkey for these crypto currencies. Many people doing researches, saving and investing money on this and new applications, websites are developed. Considering this huge interest also, The Central Bank of the Republic of Turkey, has created a working group on the subject. Central Bank Payment Systems General Manager Mustafa Okay said “Today we were discussing the blokchain system. Both banks and central banks will work with these technologies in a very short time. It is not possible for banks to remain indifferent to all these”. Mustafa Okay emphasized that the system should be learned and evaluated in every direction and nationalized during the period of use. These technologies are inevitable. Different countries are still working on the world and some precautions are being taken. You should neither directly forbidden it, nor leave it completely released. A study on this matter is being done in the Central Bank and related institutions on digital technologies and virtual money.“We are sitting at the table in certain periods to discuss what can be done with the Central Bank, the Banking Regulation and Supervision Agency, the Capital Markets Board and theTreasury”, he said.

The volume of the crypto money market has risen in the first days of 2018 and is approaching 700 billion dollars. The volume of crypto money market created by 1.385 crypto currencies increased by $ 42.5 billion to $ 697 billion.

We all know the most valuable and the most popular currency is now Bitcoin. But there are silent competitiors which are also the most interesting ones for Turkish investors.

The 5 biggestcompetitors of Bitcoin are:

ETHEREUM (ETH): Developed with block-chain technology like Bitcoin, Ethereum was created by Vitalik Buterin in 2014 to further remove the digital currency from decentralization.

RIPPLE (XRP): Ripple, formerly used by BitCoin developers in California in 2012, is the most likely successor to Bitcoin, according to some New York Times quoted experts.

IOTA (MIOTA): IOTA, which is not based on the blockchain network, is based on an alternative distributor system called Tangle. This new digital currency, cooperating with Microsoft, Fujitsu and others, defines itself as the first market place in the ‘internet of objects’ field. IOTA is a slightly different currency than the others because it has neither a miner nor has transaction fee. The transaction can be carried out without being connected tothe Internet.

LITECOIN (LTC): Litecoin, the work of a Google employee, is described as silver compared to the bitcoin’s golden color. Because it is a cheaper and more accessible option.

VERGE (XVG): Verge Currency is a crypto currency designed for every day use. It improves upon the original Bitcoin blockchain and aims to fulfill its initial purpose of providing individuals an businesses with a fast, efficient and decentralized way of making direct transactions while maintaining personal privacy. Sunerok founded Verge Currency in 2014 and is the Lead Core Developer.

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