Money functions as a placeholder in any economic system; it does not have value outside of what its users place in it as a system of exchange. As noted by Asmundson & Oner (2012), the creation of money is one of the most significant developments in human civilization. Without money, human beings would be reduced to bartering for goods and services. While this may be feasible on a small-scale, community basis, this is not true for a national economy. For many centuries, gold and silver were the primary means of universal exchange, and all national currencies were linked to the possession of precious metals. But “eventually, the paper claim on the precious metal was delinked from the metal,” and paper money became common, although “fiat money is materially worthless, but has value simply because a nation collectively agrees to ascribe a value to it” (Asmundson & Oner, 2012, par. 10). Advocates of Bitcoin, which is a cryptocurrency not linked to any specific nation, argue that it is the next, natural step in the development of new monetary systems in the global Internet age.
It should be noted that on a very basic level, anything can function as money, provided the two individuals involved in the exchange agree to the transaction. This is true of shells...
What is unique and new about Bitcoin is the fact that it is the product of the Internet age of global commerce specifically for online transactions. It dates back to 2009, and, “Transactions are made with no middle men – meaning, no banks,” which is its greatest advantage, according to its supporters (Yellin, Aratari. & Pagliery, 2016, par.1). Since its birth, it has become more and more accepted in everyday transactions on popular sites such as Expedia and Overstock. It advertises itself as an anonymous currency, which is of interest in an era where there is great anxiety about revealing information online, although it has primarily been used as a source of speculation and investment than an actual currency until recently (Yellin, Aratari. & Pagliery, 2016). The concern, of course, is that a currency which is not linked to a particular nation will not have stability or real functionality if individuals cease to show interest in it.
According to the Wharton School (2017), Bitcoin has the ability for individuals to create separate economic entities…
The finance world is finally abuzz with news of bitcoin and other cryptocurrency. What are cryptocurrencies, and what do potential investor need to know about them? This bitcoin essay offers a brief background of bitcoin and other cryptocurrencies, also referring to the blockchain software that underlies them. Then, this bitcoin essay explores what financial analysts say about the viability of bitcoin as an investment. Finally, this essay will how and
Bitcoin Explain the Functions of Money Money as a Means of Exchange This is a vital function of money in an economy because without money, the only way of exchanging goods and services would be by means of barter, which implies a direct exchange of one commodity for another. The economies we line in are monetary economies in which most of the goods and services produced are exchanged via the intermediary of money,
Business Proposition for Opening a BTC-Gold Exchange in Palestine The world economy is fast increasingly unstable as social issues such as massive migrations, economic issues such as crushing national debts, and political issues that are leading to threats of war among many nations, are becoming more and more apparent with every passing day. To protect against these issues, investors seek alternatives. Bitcoin (BTC) and gold both present themselves as exceptional stores
Cryptocurrency A cryptocurrency is a medium of exchange (currency) that is digital in form, non-governmental, and relies on cryptography for its security (Investopedia, 2018). It is the latter component of the definition that gives cryptocurrency its name. The vast majority of currency in the world comes in the form of exchangeable units that are issued and have their value controlled by governments. Nations will either allow their currency to float freely
Introduction Blockchain technology is an innovative addition to the financial market. What began as a brainchild by the people or person known as ‘Satoshi Nakamoto’, blockchain technology has evolved and become something far greater than most would have imagined. Blockchain technology allows for digital data to be distributed (not copied), allowing for it to become the foundation for a new kind of internet. Businesses have used the technology to implement the
Cryptocurrencies: Background, Details, Advantages Anyone mildly acquainted with cryptocurrency has probably heard of a currency called Bitcoin. Bitcoin and the success of bitcoin are what helped surge interest within the entire cryptocurrency market, as many view bitcoin as the pioneer of the market as a whole. According to the authoritative website cointelegraph.com, “A cryptocurrency is a digital or virtual currency designed to work as a medium of exchange. It uses cryptography