What kind of money is bitcoin?
If it were to be accepted as money, it would be a representative money because bitcoin a crypto currency and bitcoin itself is cvirtual and synthetic and has no value but it does represent value as everyone recognizes.
Does it qualified as having the 4 characteristics of money?
As bitcoin has been accepted for some payments online, and Russia is accepting bitcoin payment, so it fulfills the medium of exchange to some extent. However, it fluctuates considerably in a short period of time so it does not sore value and therefore it is impossible to be the standard for a deferred payment, as the value of the bitcoin keeps changing time to time so it does not hold the same value as when he/she made the purchases. Also, it does not measure value for the same reason, it is not possible to compare the values of two things that were purchased using bitcoin because the bitcoin itself holds different values at different time.Therefore, bitcoin only satisfies one of the 4 uses of money.
Bitcoin is intangible so it is neither durable nor non-durable. It can be portable if you have internet connection. It is not limited because whoever can actually make bitcoin if they can solve the complex mathematical problem faster than others. But it is not accepted as widely as the normal currencies are although the bitcoin is drawing public attention recently, it is not common yet as they don't satisfied the 4 uses of money.
Other examples that were given in the speech as to things that were used as currency
This happened because people are starting to trust businesses especially businesses that they are believe in.
People do not actually trust the government.
Do you use things in your daily life in a way that matches at least one of the characteristics of money?
When I was in primary school, we used to exchange things and we used to measure the value of the thing by pens or keychain. For example, if a girl wanted a notebooks or wanted a answer for homework that she didnt do, she will give someone to exchange those things by pens. So we had a lot of pens in our pencil case even though we don't use all of them.
Pen did work because it stores value and it also measures values too by the number of pens you exchange, it was medium of exchange as everyone liked pen and value them. Besides that, it is limited as we cannot buy them by ourselves since we were in primary school, it is portable, divisible as we looked at the ink level to measure the value (if it is new it has higher value, if it is old, less valuable) and it was acceptable in my primary school.
If it were to be accepted as money, it would be a representative money because bitcoin a crypto currency and bitcoin itself is cvirtual and synthetic and has no value but it does represent value as everyone recognizes.
Does it qualified as having the 4 characteristics of money?
As bitcoin has been accepted for some payments online, and Russia is accepting bitcoin payment, so it fulfills the medium of exchange to some extent. However, it fluctuates considerably in a short period of time so it does not sore value and therefore it is impossible to be the standard for a deferred payment, as the value of the bitcoin keeps changing time to time so it does not hold the same value as when he/she made the purchases. Also, it does not measure value for the same reason, it is not possible to compare the values of two things that were purchased using bitcoin because the bitcoin itself holds different values at different time.Therefore, bitcoin only satisfies one of the 4 uses of money.
Bitcoin is intangible so it is neither durable nor non-durable. It can be portable if you have internet connection. It is not limited because whoever can actually make bitcoin if they can solve the complex mathematical problem faster than others. But it is not accepted as widely as the normal currencies are although the bitcoin is drawing public attention recently, it is not common yet as they don't satisfied the 4 uses of money.
Other examples that were given in the speech as to things that were used as currency
- Tide ; as the value of the brand stays the consistent, meaning Tide satisfied store of value.
- Starpoints in Starbucks
- Amazon coins for kidles
- Onions as a change
This happened because people are starting to trust businesses especially businesses that they are believe in.
People do not actually trust the government.
Do you use things in your daily life in a way that matches at least one of the characteristics of money?
When I was in primary school, we used to exchange things and we used to measure the value of the thing by pens or keychain. For example, if a girl wanted a notebooks or wanted a answer for homework that she didnt do, she will give someone to exchange those things by pens. So we had a lot of pens in our pencil case even though we don't use all of them.
Pen did work because it stores value and it also measures values too by the number of pens you exchange, it was medium of exchange as everyone liked pen and value them. Besides that, it is limited as we cannot buy them by ourselves since we were in primary school, it is portable, divisible as we looked at the ink level to measure the value (if it is new it has higher value, if it is old, less valuable) and it was acceptable in my primary school.