DOI: 10.

2478/fiqf-2020-0024

Abstract This paper presents a theoretical and empirical outlook on different aspects of various
cryptocurrencies, blockchain technology including the evolution of digital tokens and how they widely
affect the financial markets, organizations, banks, governments via analyzing the characteristics and
current history of cryptocurrencies alongside with blockchain technology. The choice of this topic was
motivated by the fact that the virtual money concept and blockchain technology are utterly new
phenomena. This new technology is completely decentralized making the subject worthy of scientific
research.The paper solely focuses on analyzing how cryptocurrencies currently affect the financial mar-
kets and the future trends of these virtual tokens in the global economy. The study is keen to further
examine the impact of Bitcoin and other cryptocurrencies on international fund transfers. Literature
review and case study with up-to-date data has been included in the analysis. The following results
have been obtained: cryptocurrencies offer a wide range of features such as faster, cheaper and more
secure cross-border money transfers that can also provide anonymity. Most crypto tokens are highly
volatile due to their nature and various other factors. Cryptocurrencies could provide more beneficial
options for users on cross border transfers compared to traditional methods of fund transfers.
Cryptocurrencies might have the potential to replace paper money and gain mainstream recognition
throughout the world. The study sheds light onto current and future trends of cryptocurrencies and
blockchain. It is outlined for the crypto, financial, economic field.

JEL classification: G10, G15, G20

Keywords: cryptocurrency, blockchain, bitcoin

Received: 14.09.2020 Accepted: 02.11.2020

1
Individual investor and capital market specialist, e-mail: burakuyduran@outlook.com, ORCID: 0000-0002-4819-2764.
 which determines which methods in processing interna-
tional transfers are better for users considering overall
Cryptocurrency is defined as a virtual currency which metrics and the second is whether cryptocurrencies hold
is considered an electronic asset (see: https:// a bright future in the financial world, by analyzing solid
www.investopedia.com/terms/v/virtual-currency.asp). data on the global acceptance of various cryptocurrencies
The cryptology concept is used to create such currencies and crypto-based applications including e-commerce.
with encryption on the basis of number theory and math- Cryptocurrencies might have the potential to change the
ematics. Crypto coins work on the same logic as bank way the world works economically speaking (see: Corbet
transactions. There is no actual money taken ou of the et al., 2019). The expectations in this research are to de-
bank vault and only numerical changes happen in the sys- termine the possibilities cryptocurrencies have to offer
tems (see: Phillip et al., 2018). The factors that make cryp- considering international money transfers alongside fu-
tocurrencies interesting is that they cannot be controlled ture predictions on different kinds of cryptocurrencies
by any third-party organizations such as governments, based on the data collected throughout the study.
corporations or banks which can make getting involved
risky. With this new technology and the possibilities
brought by different cryptocurrencies, the door is opening
for financial fraud or scams. Criminal activities using cryp-
to tokens, cyber-attacks on electronic wallet providers, In order to correctly measure the worldwide recogni-
and money laundering are some examples (Kethineni & tion of cryptocurrencies and to determine whether cryp-
Cao, 2020). Due to the core nature of crypto tokens, tocurrencies are able to provide a better concept of inter-
transactions are carried out by those who are contributing national fund transfers, it is necessary to deeply analyze
to the cryptocurrency networks and taking part in the different features of these virtual assets based on volatili-
cryptographic system. It is possible to take part in a cryp- ty, speed of transaction, transfer related costs, security
tographic network with the necessary equipment that and privacy (Durbin & Ronca, 2015). Furthermore, global
provides enough computing power and if it is not against acceptance and future potential of cryptocurrencies are
the law within the country one resides in. On the other still in question. Thus, this part of the paper will concen-
hand, cryptocurrencies offer various transactions includ- trate on literature review of aspects devoted to future
ing international fund transfers, smart contracts, a system trends and economic potential of cryptocurrencies and
to build applications, personal and commercial invest- possibilities virtual assets present for international fund
ment, etc. (Reeves, 2017). With its organic nature virtual transfers (see: Fuentes et al., 2012; Hansen et al., 2011).
assets (like Bitcoin) are able to provide anonymity, en- Bitcoin is an electronic payment system which is
crypted security, fast transactions and a decentralized merely based on cryptographic proof instead of trust,
network for its users as well as contributors. With that allowing any two willing parties to engage directly with
possible, users are able to take full control of their per- each other without the need for a trusted third party,
sonal or commercial funds and financial situation. This is making the system completely decentralized (Sasson et
just an example of what crypto tokens are capable of al., 2014). Cryptocurrencies, especially Bitcoin, have
(Bouoiyour & Selmi, 2016). gained popularity when it comes to fund transfers global-
Blockchain is a technology which can be used any- ly. As Bitcoin and other virtual assets continue to reach
where that contains data (see: https://builtin.com/ wider recognition, more cryptocurrencies are being issued
blockchain). This system is used in blocks and distributed for different purposes resulting in the possibility for in-
making it impossible to track since the information re- creasing engagement with a broader audience (Eyal &
ceived is not to be accessed or manipulated by anybody Mirer, 2018). These researchers found out that with the
until the point where it reaches the other party (Crosby et peer-to-peer electronic cash system which comes with
al., 2016). In order to reveal the data, a decryption code Bitcoin (BTC), it is possible to process international trans-
should match the encrypted data. The accuracy of this fers with Bitcoin indicating that those transactions can be
process is provided by the people who are called miners safer than traditional methods in comparison to services
and take part in the network by mining different crypto provided by third party organizations. With such a system
values. Crypto tokens such as Bitcoin and Litecoin are di- at hand, the double-spending problem using a peer-to-
rect products of the blockchain technology whereas not peer distributed timestamp server to generate computa-
all cryptocurrencies are based on blockchain (Göbel et al., tional proof of the chronological order of transactions
2016). would not be an issue. The system is secure as long as
This paper focuses on two research questions one of honest network contributors collectively control more
computing power that is mainly dependent on a Central although the concept of virtual assets is new to the finan-
Processing Unit (CPU) than any cooperating group of cial world, cryptocurrencies have shown potential for
attacker nodes which may try to hack into the system. gaining major acceptance globally and could continue to
Nakamoto (2009) proved that Bitcoin (BTC) as an elec- do so with the demand in the market on a constant rise.
tronic cash system is able to process faster transactions The Bitcoin community is striving to push into the
than traditional methods of fund transfers processed both mainstream through innovation and solving old problems.
internationally and nationwide with its features like multi- Other sorts of cryptocurrencies have already emerged
ple digital signature and key encryption. Transactions can and have gained followings of their own, each slightly
be completed within 10 minutes. It is also possible that different from Bitcoin and arguably as valid (see: Bohr &
the process takes longer due to the number of confirma- Bashir, 2014). Some nations like Iceland have even started
tions requested by the second party receiving the crypto- their own national cryptocurrency. Hofman (2014) has
currency (Reeves, 2017). found out that the leading cryptocurrency Bitcoin and its
The most trending and popular cryptocurrency derivatives might be dominating the crypto market for
Bitcoin, alongside numerous other virtual coins, offers a being the first of many. However, other cryptocurrencies
wide range of options when it comes to cross border such as Ethereum, Litecoin, or Ripple have started to re-
money transfers. It is possible to move a large or small ceive their piece of the market capitalization creating al-
amount of funds internationally with little to no cost. ternatives to enhance the cryptocurrency experience
Bitcoin is the most commonly used method of transac- which greatly affects the global recognition of cryptocur-
tions as the leading cryptocurrency. Simser (2015) reveals rencies positively (see: Ciaian & Rajcaniova, 2018).
how cheap international transfers can be if cryptocurren- It is possible that the long-term possibilities hold potential
cies are used in such transactions. Due to the fact that the for cryptocurrency as a serious currency solution, and
sending party does not need to cover any fees for a 3rd Bitcoin is going to be instrumental in paving the way for
party organization, the cost related to sending or receiv- those currencies to flourish. The European and Latin
ing funds via cryptocurrencies such as Bitcoin, Ripple, American markets are exploding with Bitcoin transactions,
Ethereum could be as low as 0,00005 USD. However, signifying true validity. Zohar (2015) presents the phe-
there are other factors that can manipulate the cost of nomenon of how cryptocurrencies grow their user base
transfers as well. Amount of the transfer, network work- throughout the world by providing alternative solutions to
load, or combined transfers can change the price of the the public problems with third party organizations like
transactions (see: Verdier, 2018). banks, governments, or other organizations which results
Bitcoin and other cryptocurrencies such as Ethereum in more cryptocurrencies being issued by banks, compa-
(ETH), Ripple (XRP) take their place as the best crypto to- nies, or governments. The outcome is reversed growth
kens to transfer money. The reason being that with the and usage of cryptocurrencies.
option to develop the procedure of fund transfer with a One area where blockchain technology is likely to
lower cost followed by other benefits such as faster trans- possess a big impact is the financial sector. Blockchain, as
action completion time alongside the security of a crypto- a sort of distributed ledger technology (DLT), has the po-
graphic system and the anonymity it provides to its users tential to rework well-established financial institutions
is unbeatable in today’s economic world (Polasik et al., and convey lower costs, faster execution of transactions,
2015). They point out how cryptocurrencies provide ano- improved transparency, auditability of operations, and
nymity and cheaper prices of transactions. Digital assets other benefits covered by Adrianto & Diputra (2017).
do not require users to give out identities when sending Moreover, cryptocurrencies hold the promise of a
or receiving cryptocurrencies. The transaction is always replacement as a native digital asset class without a cen-
encrypted and anonymous. Also, the data related to the tral authority (Baek & Elbeck, 2015). Authors in their re-
process is stored in the blockchain. search have proven that blockchain technology that backs
Cryptocurrencies have already moved past the first the Bitcoin and several other cryptocurrencies allow the
adoption phase that new technologies experience. Even process of transfer without the necessity for third parties;
motor vehicles experienced this phenomenon. Bitcoin has the blockchain technology lets the process happen quick-
begun to carve itself out a distinct segment market, which er and more efficiently.
could help advance cryptocurrencies further into becom- A vast change in the crypto industry is forthcoming as
ing mainstream (Narayanan et al., 2016). Cryptocurren- institutional money enters the market. Moreover, there is
cies are still in their infancy, and it's difficult to state the likelihood that cryptocurrencies are going to be float-
whether they're going to ever find a true mainstream ed on the NASDAQ, which might further add credibility to
presence in world markets. Farfield (2014) found that blockchain and its uses as an alternate to standard curren-
cies. Some experts predict that cryptocurrencies may be- third party service providers.
come a verified exchange traded fund (ETF) (see: Bakar &
Rosbi, 2017). Authors of the research have found that an
ETF would definitely make it easier for people to take a
position in Bitcoin and other cryptocurrencies. However, Metrics and analysis have been prepared with the
there still must be enough demand to require taking a data provided by the World Bank with the most up to
position in virtual assets, which could not automatically date information on the basis of the year 2020, and the
be generated with a fund. case study research method was implemented in order to
Ongoing subjects for research about Bitcoin and other determine the possibilities cryptocurrencies have in store
cryptocurrencies are quite numerous. Extensive studies when it comes to international fund transfers and to pro-
should be performed on the economic effects of Bitcoin vide a comparison to traditional remittance services. The
on long-standing fiat currency performance and compare factors classified as speed, cost, accessibility of transac-
the results to countries that are starting to adopt state- tions with crypto tokens and other methods provided by
sponsored cryptocurrencies (DeVries, 2016). This re- third party service vendors are presented in Figure 1, Ta-
searcher found that the power for cryptocurrency to per- bles 1 and 2.
form micro transactions may allow it to bridge an eco- The research methods used in this article are critical
nomic gap that traditional state sponsored currencies analysis and forecasting of the future of cryptocurrencies
wouldn't be ready to solve but requires a much deeper and their global acceptance. This article also uses a case
market and economic analysis to determine. Beck (2018) study to compare traditional remittances with the crypto-
proves the point where blockchain technology that acts as currency alternative. Also, the future trends of these vir-
Bitcoin’s backbone has potential uses in other ways, such tual tokens in the global economic industry containing e-
as smart contracts. These contracts are programmed pay- commerce are researched through the article and illus-
ments that occur when a group condition occurs. Prede- trated in the figures shown in the findings section.
termined payment contracts are normally administered Data was extracted from CoinMarketCap, Bitinfo-
by a whole accounting department of a company, making charts, CoinMap and the author’s own study concerning
this a particularly fascinating topic of further transfor- different cryptocurrency statistics based on the interna-
mation assisting the growth in usage of cryptocurrencies tional endeavors with the engagement of countries from
and determining the future trends of virtual assets all over the globe. Acceptance and usage of various cryp-
(Corbet et al., 2019; Yilmaz & Hazar, 2018). tocurrencies are analyzed throughout the world with real-
Cryptocurrencies are a product of using cryptography life numbers forming the data used in the study between
to make a digital property. The frontier of digital assets 2015-2020 which ultimately allows a measurement of the
was popularized by the music industries shift to a cloud- future potential of cryptocurrencies, e-commerce, and
based infrastructure. This frontier remains fairly new and remittance services as presented in the findings section.
unexplored, mainly populated by differing types of media. Advantages of the case study incorporate information
Other sorts of digital property may become as popular as assortment and examination inside the setting of a phe-
music and cryptocurrency. Eight years ago, digital money nomenon, integration of qualitative and quantitative data
was completely unprecedented, and therefore the creator in analysis, and the capacity to catch complexities of real-
of Bitcoin single handedly changed that, forming the basis life circumstances so the context can be concentrated in
for brand new virtual assets that have been considered by more prominent degrees of profundity which represents
Bulut (2018) as well as Wang et al., (2020). high compatibility with such research subjects. Further-
Literature review demonstrates two research prob- more, case study methods allow us to analyze and com-
lems. One of them is the lack of analysis in order to deter- pare detailed, complex and specific topics such as the
mine whether cryptocurrencies are to gain worldwide research aim and questions of this paper.
acceptance, user growth and the completion of a hefty The case study takes into account the current issues
amount of transactions completed in the near feature. For of cryptocurrencies with an outlook on the future trends
example, support from banks, governments and firms in of Bitcoin alongside other cryptocurrencies (see: Barak &
case there may be the problem of risking the qualities Rosbi, 2017; Harrigan et al., 2017). The case study imple-
that make cryptocurrencies different than fiat money. The mented in the related chapter provides a brief introduc-
other research issue is the gap on knowledge on interna- tion to the topic by requiring a point to be proven that is
tional transactions relying on crypto-based applications respectively supported with trustworthy data as well as
and the types of factors to prove whether transfers via the author’s own input, interpreting the overall situation
cryptocurrencies provider wider possibilities compared to of the specific matter in order to come up with a realistic
assessment and solution contributing to further research Cryptocurrency effect on improving cross border transfers
on the subject. and possible future trends are covered in this chapter.
The research states the factors that massively present
impact on the role of cryptocurrencies in improving cross
border transfer and considering different types of tradi-
Analysis of the findings through critical analysis and tional methods of fund transfer in comparison to block-
case study have been underlined with forecasting to pre- chain-based cryptocurrencies, especially Bitcoin as the
sent a research gap and prove a point with the data ex- leading virtual peer-to peer cash system are shown in
tracted for case study from the World Bank. A global ac- Figure 1.
ceptance map for cryptocurrencies is provided in Figure 3.

Figure 1: Cryptocurrencies and traditional remittance transaction time & fees

Source: World Bank Data: https://blockdata.tech/insights (18.08.2020)

Commercial banks and the organizations which pro- methods of money transfers are on the verge of failing to
vide money transfer services function mostly on commis- provide the benefits that cryptocurrencies can offer. As a
sions and exchange rate of the foreign currency used in result, third party service providers such as PayPal or
each transaction, making the traditional technique cover- MoneyGram are limited against the cryptocurrencies. On
ing cross border transfers perhaps not the best of options the other hand, cryptocurrencies like Bitcoin can make a
available. For instance: fund transfer companies like transfer amount of about 250 million USD with a fee
Western Union or PayPal charge about 1-2 USD per trans- ranging from 0-1 dollars presenting a huge difference
action as the bank withdrawal fee. This part is reasonable compared to any traditional methods like bank transfers
for the most part. However, third party service providers and third part handlers. Blockchain has fully adapted its
such as PayPal, MoneyGram, or Western Union make system in cross border payments eliminating certain risks
their main profit on the foreign currency exchange rate including present currency and political risks together
that drives revenue for the organization processing such with elevating the speed of transaction which can indi-
transactions. Transferring funds via traditional methods cate that cryptocurrencies offer wider possibilities and
might cost the sender 4-5% of the initial amount, making better options in terms of international fund transfers
95% available to withdraw by the receiving party. This (Khan & Salah, 2018).
fact presents the phenomenon of why the traditional
 Figure 2: Solved issues of transfers processed with Bitcoin

Source: Own study

Figure 2 presents the problems with Bitcoin transfers those problems. Current developments on improving the
that may impact the functionality of cryptocurrencies functions of crypto tokens related to money transfer is-
based on the international fund transfer industry. None- sues are being undertaken, meaning the issues related to
theless, the issues stated in the above figure are possible international fund transfers have been resolved and cryp-
to overcome with the innovative system of cryptology and tocurrencies have the capacity to process money transfers
blockchain. Nowadays, cross border transfers made with to the countries where applicable law permits.
BTC or any other cryptocurrencies are processed without

Table 1: Traditional remittance services compared to blockchain-based remittance services

Vendors Transaction Time Cost Accessibility
Bitcoin 14 minutes 0,13 USD 24/7
Litecoin 3 minutes 0,07 USD 24/7
Bitcoin Cash 26 minutes 0,10 USD 24/7
Western Union 4 business days 27 USD Business hours only
MoneyGram 3 business days 18 USD Business hours only
Bank Wire Transfer 3 business days 35 USD Business hours only
Source: Own work

As shown on the above table, most common re- MoneyGram. The intermediary bank incoming fund fees
mittance service providers and cryptocurrencies were that occur when working with banks are not included in
compared based on a single transaction on each vendor the cost section. Only transaction costs are considered.
which took place on October 2020. The most cost- Cryptocurrency remittance transactions are 350 times
effective ways were used to compare the services equally faster and 267 times cheaper on average compared to
as organizations such as MoneyGram and Western Union transactions made through traditional remittance service
offer faster transaction services with higher fees. All providers based on the calculations from the data pre-
transfers were made between Turkey and Poland as fees, sented in Table 1.
regulations, and transaction times may differ depending As the test for this case study is conducted on a sin-
on the country. 500 USD was used for this case study as gle transaction, it is possible to state that each transac-
the financial unit to send and receive through different tion processed by the cryptocurrency network no matter
networks as illustrated in Table 1. In order to compare the financial unit can take longer or shorter and cost
the services on a justified and equal basis, the bank trans- more or less than the numbers shown in Table 1. The
fer method was used for Western Union and core nature of the blockchain and the cryptocurrency
network is the reason for that. The cost of the transac- calculation services. The same goes for the services such
tions through cryptocurrency depends on the transaction as Western Union, MoneyGram or a bank. Transaction
size and traffic in the network. Some cryptocurrency wal- size and countries chosen for exchange are among the
let vendors provide dynamic fees and also automatic fee factors determining the cost and the speed of each pro-
cess.

Table 2: Remittance services comparison

Traditional Remittance Services VS Blockchain Remittance Services

Central data storage Security Encrypted & timestamped trackable transac-

tions
Multiple channels and central banking system Transfer Multiple channels and instant settlement

Fiat Medium of Exchange Crypto & Fiat

Stronger mainstream trust Brand Weak trust

Distributed ledger technology

Central infrastructure, manual Technology Open-source
SWIFT (Cross-border payment system) Global payment network and payment proto-
cols
Money transfer services
Money transfer services Forex
Forex Product & Services Cryptocurrency wallets & storage devices
Loan, credit, bank, cash Payment protocols
Billing Stable coins
Money transfer apps Money transfer apps
Lending, billing
Source: Own elaboration

Different remittance service providers are compared world. It doesn't end there and expands to governments,
in Table 2, illustrating the difference between blockchain- corporations, legal personalities and further. This helps
based vendors and traditional methods. With the data the environment of the crypto market to a cycle of con-
collected in Table 1 and Table 2, it is possible to state stant development. New digital currencies are being is-
that cryptocurrencies provide a larger base of advantages sued to be used for various means including creating ap-
when it comes to remittance services in comparison to plications, investment portfolios, international money
most popular methods used by the majority of consum- transfers, or trading and therefore the list goes on be-
ers. Blockchain technology has the potential to solve vari- cause the technology behind cryptocurrencies is evolving
ous problems in the remittance industry such as high and the worldwide acceptance of those digital assets are
fees, long transaction times and the abundance of inter- an ongoing matter. Currently, there are many portals
mediaries by eliminating the large fees imposed by third accepting payments via cryptocurrencies, especially
party organizations, servicing and having accessibility at Bitcoin. The number of opportunities to use crypto to-
all times, providing anonymity for users and a security kens is still growing from ATM machines to even gas sta-
level that can be provided with the technology behind tions. There are almost 15,000 venues that are ready to
blockchain, cryptocurrencies. process transactions using different sorts of cryptocur-
Recently, cryptocurrencies have been drawing con- rencies, mainly Bitcoin, by mid-June 2020 which states
siderable attention from a wide audience throughout the the point of growing user numbers of virtual tokens and
the gaining of acceptance in various countries utilized in the dark web which is the other side of today’s
(Dumitrescu, 2017). internet which people might use for criminal purposes like
Cryptocurrencies are being widely accepted and rec- concealment of the purchase and trade of illegal sub-
ognized mostly in North America and Europe and a few stances, weapons and services. This is often actually a
Asian countries. Bitcoin’s acceptance has grown over serious issue involving cryptocurrencies and presents
700% since 2013 and the current situation with crypto a dangerous threat to society. Using virtual assets like BTC
assets may be a clear indication. With crypto coin mining in criminal acts increases the amount of the transaction
getting popular and more people being involved in the conducted within the dark web and creates possibilities
process, need and demand for different cryptocurrencies also for scammers to con individuals who do not possess
arise. While some countries declare cryptocurrency usage credible information on this matter with unrealistic ma-
illegal and punishable by fine, like Ecuador, Bolivia or Mo- nipulations which proves the very fact that cryptocurren-
rocco, the majority of the world has no such limitations cy may be a medallion having two sides. One provides
whatsoever. Cryptocurrency accessibility for cyber-crimes benefits while the opposite side fuels the dark web and its
and illegal transactions can't be overlooked. Due to the affiliates which reveals the phenomenon that cryptocur-
anonymous and decentralized network provided by the rencies do affect the economic world while also allowing
crypto market assisting in such situations, ultimately this new possibilities to emerge from its decentralized nature
decreases the prestige of cryptocurrencies. They're also (Luther, 2016).

Figure 3: Worldwide Cryptocurrency acceptance map

Source: https://coinmap.org/#/world/28.61345942/64.33593750/2 (26.08.2020)

As illustrated in the above figure, it is possible to harder for a significant number of the population, apart
state that cryptocurrencies have gained some level of from the technological adoption.
acceptance in many countries and that the user base has Blockchain as a new technology holds great potential
grown tremendously and shows an attitude for growing to provide possibilities in many industries and organiza-
demand and innovation. It is also possible to predict that tional settings. If used for e-commerce as presented in
as more and more different cryptocurrencies are issued Figure 5, blockchain could solve some disadvantages for
for various purposes, it will positively affect the growth of the current e-commerce systems with the help of crypto-
the concept for virtual currencies worldwide. While the currencies. E-commerce has been growing rapidly for
number of merchants within the United Nations which years. However, offline trade and transactions still play a
accepts cryptocurrencies has inflated, they are still very large role in our daily lives as they are considered easier
much within the minority. For cryptocurrencies to reach a and more secure. P2P payment is processed through the
global majority, they need to gain widespread acceptance use of cash. Online transactions are obligated to use a 3rd
among shoppers first. However, their relative complex party payment system which is subject to commission.
nature compared to traditional currencies can make it With the use of blockchain as an already adopted system
in the e-commerce network, P2P payment with cryptocur- cludes computers named as nodes that approve the trans-
rency can be supported. The ledgers model is proposed to action. Verification is done through comparing the signa-
provide the chance to pay digitally as if paying directly ture from digitally signed data by the public key belonging
with cash. This blockchain implementation would have a to the signer party to be decrypted. The two transactions
P2P network to store and validate the transactions. Users are subject for verification consisting of the data from
may remain anonymous and a smart contract will be seller and buyer separately. After both verification pro-
placed in order to ensure security. cesses are complete, they will be combined to create
When a buyer and seller start a transaction, data is block data. The ledger system takes the block data and
going to use the hash function which is encrypted by the adds to the blockchain which finalizes the process. Cryp-
use of a private key that belongs to the signer. As soon as tocurrency is used as the form of payment and the trans-
the encrypted data is signed that forms the smart con- action can be completed.
tract, it will be sent to the P2P network. P2P network in-

Figure 4: C-commerce Module

Source: Own elaboration

Figure 5: Advantages of cryptocurrencies on e-commerce

Source: Own study

 E-commerce may hold the longer-term trends for
cryptocurrencies. Because the market grows, it is going to
generate an opportunity for virtual assets to play a role. Given all the information presented throughout the
This is going to be possible through employing a crypto article, it is possible to conclude that cryptocurrencies
value as a medium of exchange on online retailer web- hold a huge range of opportunities with new technologies
sites. Cryptocurrencies can provide the benefits as stated and constant development. Also, these virtual coins have
in Figure 4. In order for this to happen as projected above, great impact on the economy by affecting banks, govern-
a replacement cryptocurrency must be invented. This new ments, corporations and individuals. Crypto tokens are
digital token should only specialize in e-commerce and very distant from being regulated by an authority. A de-
protecting the customer. Integrated cryptocurrency needs centralized system which is integrated allows anonymity
to be the sole valid medium of exchange which is accept- and privacy to crypto users which are the most popular
ed as a way of payment and must have a stable price con- features of virtual assets. Cryptocurrencies clearly have
sidering fairness to the people that would really like to the potential to take part in the future of our daily lives,
use the amenities of such a system. A decentralized mar- because the global acceptance rates are considerably
ketplace could be created and this structure must have its growing which suggests that at some point, crypto-money
own cryptocurrency embedded into the core build. In could be a rival to fiat currencies and even replace them
addition, a replacement era may begin for global e- in the future.
commerce. The thought would be to transform commerce These study findings indicate that there are vulnera-
to c-commerce where the letter c stands for cryptocurren- bilities with the present state of the crypto-market and
cies. The current trend of retailing markets would be tak- security concerns which can't be overlooked or ignored.
en to a subsequent level by providing advantages of the e- Many incidents of hacking attacks or theft have occurred
commerce environment which is based solely on crypto over the years that caused significant injury both finan-
token and blockchain technology. Benefits of such a sys- cially and technically to the credibility of cryptocurrencies
tem would be more for the consumers which constructs and also to the people that use the services. This happens
the foremost important part of the market-commerce due to the technical drawbacks within the system which
system which would definitely be a revolutionary inven- definitely need to disappear if the cryptocurrency market
tion which could change the way things work in today’s is to survive in the coming years. Moreover, the invention
retail market. of Bitcoin and other crypto tokens created an environ-
Moreover, future trends and possibilities of crypto- ment for the dark web which ultimately increased the
currencies present promising growth on aspects of global crime rates and made it harder for authorities to spot the
acceptance, user base, money transfers, demand in in- persons of interest involved in illegal acts. That is a seri-
vestment and crypto-based applications. If the crypto ous problem and an obstacle to the governments’ percep-
markets continue to be bullish and users or investors con- tion which is why regulations are suggested to be applied
tinue to back cryptocurrencies in the long run, there may to crypto coins. While third party control looks like an
be a possibility that crypto-based economies might be- honest idea in such cases, that might also destroy the very
come a reality. A cryptocurrency-based economy could reason why people prefer using crypto assets. Volatility is
ensure that the money that comes from the fund of coun- perhaps the most important issue that cryptocurrencies
try authorities is invested in crypto tokens. That could experience now because the market is fragile and it's not
provide dependability and transparency, where each too hard to control the costs of crypto tokens using media
transaction would be publicly recorded and could be as an example. This problem causes unstable market val-
tracked by the involved parties. While a growing number ue fluctuations leading to inconvenience for the bottom
of merchants have already begun to accept different cryp- user portfolio. Additionally, volatile assets are considered
tocurrencies like Bitcoin, Ethereum, Litecoin or Dash, to be less credible and it makes it much harder for crypto-
virtual assets are still far from being as accepted as other currencies to adapt to the financial markets.
mainstream payment services. In the case where the cryp- All in all, with the information gathered throughout
tocurrency market continues to be stable or liquid, it is this article, it is possible to state that cryptocurrencies
possible to predict that worldwide recognition will be- might be here to remain. From its’ beginning the rapid
come more mainstream and even major players such as changes and news on the mainstream media drew the
Amazon, Walmart, Alibaba, or eBay may begin to accept attention of many people and this led to the increased
cryptocurrencies. usage of crypto tokens in real-life purposes. Now it's pos-
to use virtual assets in order to make payments online anonymity on the web which is usually seen as a rebel-
and also in places which accept cryptocurrencies and for lious act against the present medium of exchange and
other numerous purposes like money transfers for both therefore the governments. This study demonstrates the
international and domestic regions, to build applications statement that in the future cryptocurrencies might even
for computers and smartphones, or start a business with replace paper money altogether. The concept of crypto-
ICO and crypto money like Ethereum. currency is separating government from money as the
As a result, paper money is losing its effectiveness internet distinguished information from the state.
because the crypto coins gain more trust and are offering As there are many factors in play in order to deter-
features and possibilities that fiat currencies are not ready mine whether cryptocurrencies could form a reliable pres-
to comprehend. With technology developing so rapidly, ence in the future or provide better possibilities for mon-
fiat currencies are moving closer to being outdated. With ey transfers, further research could be done at other lev-
the developments of the present system of crypto coins, els of depth based on different variables such as how
more people have begun to use it. The number of individ- third-party organizations effect cryptocurrencies. The re-
uals who use and invest in crypto tokens is estimated to sults of this study recommend further research to be con-
expand in the upcoming years which is an expected out- ducted on the relations between crypto-based applica-
come given the circumstances. Issues that challenge the tions and factors that affect the qualifications of interna-
crypto-world are decreasing because the cryptographic tional fund transfers based on different countries as each
system develops itself to stop possible malicious attacks, state endorses its own regulations and rules for crypto-
hacking, theft or bad intended mining. The crypto market currencies usage. Also, these findings suggest further sci-
is growing with regard to total market capitalization and entific research on applications using cryptocurrencies
number of users which increases the credibility of such which can create a system or a medium of exchange
assets. Ultimately, crypto tokens are very attractive to which can embody an e-commerce environment resulting
those that value their privacy, security of their funds and in decentralized trade.

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