Bitcoins vs Money Essay Example | Topics and Well Written Essays - 1000 words

Bitcoins vs Money - Essay Example Bitcoin system is entirely dependent on internet platforms, which are readily available across the globe because of the technological advancement (Rotman 1). Using Bitcoin, the average income earners can easily transact beyond border transactions without incurring extra costs in physically moving to those places. This essay examines the use of Bitcoin and money as applied in the current system. Kudlow Larry downplays the rise in use of digital currency. He cites the rapid fluctuations in prices by hundreds of dollars in the space as a key challenge that emanates from digital currency use. He outlines an example of an individual who buys an item for $500 but after the retailer processes payment, the digital currency falls to $100 in value. He resolves that both sellers and buyers make associated losses because bitcoin is not a reliable medium of exchange with dependable store of value (Kudlow 1). On the contrary, money has a store of value. Its value does not fluctuate as rapidly and frequently as in the case of digital currency. Because Bitcoin has no store of value, economists prefer the money system to digital currency. Digital money use has no border restrictions. Making cross-border transactions is easier and simpler than in the case of money. Money system is more reliable and regular fluctuations in prices do not affect it. Digital currency use will therefore not pose a significant effect on money use. The reason for this is that money system posses superior features like security and reliability that the digital currency system lacks. There are viewpoint that the rising use of digital currency like bitcoin transactions will not pose a significant impact countries’ economic progress. According to Gaulio, bitcoin transactions are easily traceable to their initiators hence American government, for instance, will fully advocate its use. In a state controlled digital economy, the taxation units will

Analysis of Articles about Economic Growth Annotated Bibliography

Analysis of Articles about Economic Growth - Annotated Bibliography Example The author showed evidence to support his argument that the recent housing market boom bears many similarities to the stock market bubble of the late 1990s, and may eventually be followed by declining home prices for years to come. All this information helped me understand the real estate market more clearly; therefore, I can deeply analyze the internal connections in both markets. Solomon, S. (1995). The confidence game: How Unelected Central Bankers are governing the changing world economy. New York: Simon and Schuster. The author studied the interaction of the world’s financial markets by looking at the way Central Bankers in the U.S., Germany, Japan, England, and France coordinate their economic decisions, whether related to interest rates, exchange rates or target economic growth and inflation rates. The book showed how the world’s financial markets are connected and controlled by a small group of government officials and economists, which is frightening because people who are not elected are in control, but also somewhat reassuring because it also shows that different countries are helping each other to prevent the global financial crisis from happening. The discussion on the past bubbles, especially the 1987 Black Monday crash in the New York Stock Exchange, and how the market corrected to save itself from a major crisis, are very dramatic and a good learning experience. Tully, S. (2007, September 3). â€Å"Risk returns with a vengeance.† Fortune Magazine, 156 (4), 30-36. This is part of the same issue of Fortune Magazine on the market crash of 2007. This article is a discussion of the issue of risk, what it is, how it is measured, how banks and lenders try to avoid it, how borrowers regard it or not, and how overconfidence and greed result in the lowering of the perception of risk by the market. Although a bit cynical, since the author wrote that financial markets seem to go from one crisis to another, the article is also very enlightening because it shows how a free market economy makes adjustments that market forces learn to abuse.