Grey system theory and an application

It is very important to establish practical and reliable models in decision-making processes. In this study, crypto money prices are estimated using the GM(1,1) model of Grey System Theory, which can make successful predictions with incomplete information and small sample. In the second part of this study, the concept of money is explained by considering its features and functions. In the third chapter, the general characteristics of cryptocurrencies and the emergence and features of Bitcoin, Ethereum and Litecoin cryptocurrencies selected for application are mentioned. In the fourth chapter, the Grey System Theory is introduced and the processing steps of the GM(1,1) model used for forecasting are given. In the application section, which is the fifth part of the study, GM(1,1) models were established with the price data of the cryptocurrencies, and the error rates of the established models were determined. As a result of the error analysis, it was seen that the models established were suitable for estimating and the future period was estimated.