Crypto currency phenomenon and blockchain technology: The reaction of economic actors, cost analysis, Var model and Granger causality test

Money, a unique instrument in terms of functions it fulfills, undoubtedly has a big importance for mankind. Besides facilitating the daily life, this irreplaceable invention plays a great role in the economic transformation of enterprises and countries. In this direction, money also has undergone a critical transformation within centuries in parallel with the changing world. Nevertheless, money has always been under a central authority's control. But, coming forth in 2009, Bitcoin and Blockchain technology behind it have brought an unprecedented innovation to money concept. This study examines Crypto Currency and Blockchain technology, starting with Bitcoin and expected to bring about significant changes towards financial system. In parallel with that, economic actors' views for this issue are cited; policies being implemented are expressed, the impact of Blockchain technology to the costs is analyzed and the relationship of crypto currencies with each other is examined. Studies reveal that with the use of that new technology there will be a substantial reduction in transaction costs and efficiency will increase. And the VAR Analyses and Granger Causality Tests bring an explanation to the role of Bitcoin and Altcoins' relationship in price formation of crypto currencies.