Bitcoin: Future or Bubble?

Abstract

A crypto-currency can be defined as a virtual monetary unit that is used via internet and not subject to the controls of any central authority or intermediary. These crypto-currencies can only be transferred from the virtual ledgers by using specific ciphers and can be used in a transaction via specific ciphers. In other words, individuals and institutions can make payments using these crypto-currencies just like other currencies. There are more than one thousand types of crypto-currencies. The purpose of this study is to find an answer for the question of whether these crypto-currencies could be the money of the future or a financial bubble like those examples in history. There is still no consensus on the value of crypto-currencies. Reliability and the superiority of blockchain technology are the strength of crypto-currencies, while its usage in money laundering, high transaction costs and problems with data mining are their weaknesses.