Determination of the criteria and alternatives affecting the choice of crypto currency in Turkey using the AHP method

This thesis aims to determine the criteria influencing investment preferences in cryptocurrencies in Turkey and to make choices among cryptocurrency alternatives based on these criteria. In pursuit of this objective, a factor analysis was initially conducted among the criteria, and a systematic classification of the criteria was established. Subsequently, the Analytic Hierarchy Process (AHP) method was employed for a detailed examination of the classified criteria. Through this method, criteria affecting individuals' investment preferences were identified and ranked based on their impact levels. In the second stage, using the market values as of May 2023, the determination and ranking of the optimal alternative among cryptocurrencies with the highest transaction volume in Turkey were conducted through the AHP method. In this context, the analysis based on market values provides a significant perspective for understanding investors' preferences. The first chapter of the five-chapter thesis aims to build a foundation for understanding factors influencing cryptocurrency investment preferences. The evolution of cryptocurrency, historical development of the transition from traditional currency to cryptocurrency, fundamental characteristics of cryptocurrency, and the emergence of blockchain technology are discussed. In the second chapter, detailed examinations of cryptocurrency alternatives such as Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Ripple (XRP) ve Cardano (ADA) are conducted. Various criteria influencing cryptocurrency selection are explored, and a literature review is conducted to establish the theoretical framework. The third chapter provides a detailed explanation of the methods employed, including the data collection process, expert opinions, explanatory factor analysis, and the AHP method. The fourth chapter presents the findings obtained through explanatory factor analysis and the AHP method. The final chapter summarizes the main results of the study. According to the research findings, the 21 criteria identified through explanatory factor analysis were reduced to 6 main criteria/factor dimensions. These main criteria encompass Market, Technical, Social, Personal, Media, and Economic factors. Furthermore, based on binary comparisons conducted using the AHP method, the ranking of these main criteria in terms of their impact levels was determined as Market > Technical > Social > Personal > Economic > Media. The results indicate that these factors have different priorities in various cryptocurrencies. For instance, BTC ranks first in Market, Personal, and Media factors, while ETH is preferred in terms of Social and Economic aspects. Finally, in the overall assessment of cryptocurrency alternatives, the ranking was determined as BTC > ETH > BNB > XRP > ADA, moving from the most to least preferred. Keywords: Cryptocurrency Investment, Turkey, Multi-Criteria Decision Making, AHP Method, Factor Analysis.