Economists divide the history of currency into periods. It is argued that initially, people met their needs through bartering, then they transitioned to using standard goods such as salt and seashells as currency, before the invention of money. After gold and silver served as currency for an extended period, the gold-equivalent currency system was introduced, followed by a fiat currency system backed by state power. Subsequently, deposit money emerged with the development of the banking system, leading to the virtualization of money with technological developments and the emergence of electronic currency. However, it’s important to note that even these forms of currency are backed by state power, falling under the category of fiat money. Finally, we entered a new dimension with the introduction of cryptocurrency into our lives about 15 years ago. Because cryptocurrency has no material asset and no value, there is no state power behind it, and a decentralized system is aimed with it.
When examining the history of humanity, we observe gradual technical development and change across all areas of life. However, the rapid development and change experienced in the last two centuries have probably never been witnessed before. This is because inventions sparked the Industrial Revolution and subsequently the Technological Revolution. This technological revolution has accelerated every aspect of life, including finance. Some operations and transactions that once took days, weeks, or months can now be completed in a very short time. For example, transferring money from one place to another, which previously took hours, days, or even months, depending on the distance, has now been reduced to minutes or seconds. The most significant convenience brought by blockchain technology, which lies at the heart of the cryptocurrency system, is the transfer of money or any other digital asset. In the existing system, there may be certain delays and other problems due to the involvement of national or international institutions in money transfers. Since blockchain technology eliminates the intermediary institutions, these problems are also eliminated. However, it also introduces some issues due to decentralization. Therefore, this system has both advantages and disadvantages.
First of all, it is important to note that cryptocurrencies did not emerge overnight; they were the result of a process. It is well known that cryptography and the Internet, utilized for secure communication, particularly during times of war, laid the foundation for this currency. However, in our opinion, the most important thing is the mindset and concept behind cryptocurrency. It is recognized that the inception of Bitcoin, the first cryptocurrency, was influenced by a movement known as “cypherpunk”. The cypherpunk movement advocates personal privacy and freedom in all social, political, and economic spheres through the use of cryptography. Therefore, they strive for a decentralized system and for the Internet to be a hub for people. Cryptography plays a key role in blockchain and crypto-assets. This allows people to produce their money without the need for a center or a state. Therefore, the basic structure of cryptocurrencies is based on a mindset that puts the individual at the center and opposes centralized systems and institutions. Naturally, without understanding its inception, predicting its future trajectory and implications remains challenging.
On the other hand, it is necessary to mention the blockchain technology that has been introduced into our lives due to cryptocurrency. In cryptocurrency debates, it should be made clear what exactly the opponents are criticizing. Otherwise, when discussing certain negative aspects of cryptocurrencies, it may seem as though the entire underlying technology is being rejected. Although cryptocurrencies do offer some advantages, their individual and social disadvantages are currently more prominent. However, these are not related to the technology on which they are based, but rather to the cryptocurrencies themselves. Moreover, it cannot be said that all cryptocurrencies, which number in the tens of thousands, are the same. They are quite different from each other in terms of their production and intended use. Therefore, it is not feasible to make a blanket judgment that encompasses them all.
It is highly probable that cryptocurrencies will exist in some form in the future. However, it seems that the significant claims made when they first emerged have not materialized, at least not yet. Bitcoin, the pioneering cryptocurrency, has not managed to establish itself as an alternative currency, as initially claimed. In fact, many states do not even recognize cryptocurrencies as “money” but rather classify them as intangible assets. Without state backing or physical value, people tend to utilize them more as investment tools. Nonetheless, there has been a considerable amount of victimization within this area. The victims often seek recourse within the centralized system and appeal to the state for resolution, contradicting the claim of being a decentralized system, which was the intended purpose of the emergence of these currencies.
Nevertheless, cryptocurrencies will continue to affect people, and in our opinion, this effect will be seen more in the form of digitalization. Digitalization, which has been progressing steadily in the recent few years, accelerated significantly after the COVID-19 pandemic. People have already begun to reduce their reliance on physical currency through the adoption of systems such as credit cards, debit cards, and Internet banking. It is conceivable that the use of physical money will further diminish with the effect of cryptocurrencies. Specifically, the rise of virtual environments like the metaverse, where cryptocurrencies are the sole medium of exchange, is likely to accelerate digitalization even further.
In conclusion, it can be said that money has undergone a continuous change in the historical process and that this change is currently in the direction of digitalization. This digitalization has impacted and will continue to impact our habits, culture, and perspectives. However, it is imperative that digitalization occurs in a healthy and beneficial manner. In other words, we should not be caught up in the digitalization trend, but we should be the ones who manage the process. Therefore, we should strive to ensure that digitalization, which cannot be avoided, takes place in accordance with our own cultural and religious values. It is not possible to resist change, but it is possible to manage change. Therefore, we must first accept change and then equip ourselves to manage it. Let us not forget the teachings of the Prophet (saw), who emphasized the importance of always being prepared for development and change, lest we suffer loss. Additionally, while technology may simplify our tasks, it should not disconnect us from the real world.
