Crypto Currencies in the Framework of Chaos Theory and the Relationship of Crypto Currency with Big Exchanges

Year 2021, Volume: 3 Issue: 2, 15 - 23, 31.12.2021

Selcuk Kendirli , Fatma Yıldız Şenol

Abstract

Technological developments have had an impact on the currency as in every part of our lives. The money market has become more intangible with virtual currencies. Every state and person wants to keep their own money under control. Crypto money, which is the subject of the study, is a sub-type of virtual currency. It is not created by any institution. The discussions about crypto currencies, which have been mentioned frequently in recent years, bring the butterfly effect to our minds by looking at the state it has reached recently. “A butterfly flapping its wings in the Amazon Jungle could cause a storm to break out in the USA”. It is a summary expression of the chaos theory expressed in the form and applied in various ways in almost all kinds of science. So, how will the crypto currencies, which emerged in 2009 and reached a solid place in the market today, will have an impact on the stock market and financial market?
In this study, within the framework of Chaos theory, the impact analysis between the large stock market volume and the Bitcoin volume in the 11-month period between 2019-2020 was examined, and then the relationship between them and the world uncertainty index was examined. Has been tried to be analyzed until it has changed.

Keywords

Chaos theory, Crypto currencies, Stock Market, Causality Relationship

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