Cyrpto money as a block chain application and its effects on financial markets

Before the invention of money, trading was done by a complex system called the Barter Trade. Under this system, people exchanged goods directly exchanged with other goods. With the invention of money, in order with, a representative coin and a coin and a banknote came into existence, as a result of the widespread use of the Internet e-commerce and electronic payment concepts have entered our lives. A number of problems in the electronic payment system over time have increased the need for a new form of payment, which may be an alternative to existing payment systems. Due to the loss of confidence in financial systems with global crises and huge development in information communication technologies, investors searched for currencies with high level of security and no authority. Bitcoin, which is based on blockchain technology, started operating in 2009 as the first cryptocurrency application. There are no legal regulations at the national and / or international level regarding crypto money applications and their purchase, sale and mining. Accordingly, crypto money cannot be subject to any tax regulations. In this study, the monetary systems that are used today are analyzed based on the characteristics and historical periods, functions and types of money. Later, after the electronic money division was explained on the basis of the concept of electronic money, electronic money systems and digital money, crypto coins were mainly examined with the Blockchain system. Finally, the effects of cryptocurrencies on financial markets are explained comparatively.