With the knowledge acquired so far in Monetary Economics, would you regard Bitcoin as money? Discuss your answer

Answer to Q no 1

Money is any medium which can be used as means of exchange , and we can accumulate it and it is measurable and bitcoin qualifies all the requirements thus it is a money as we can buy and sell bitcoin , we can invest in bitcoins and keep it as investment and is measurable and it used as a unit of account which is evident from the ledgers which is maintained .

Answer to Q no 2

There has been global adoption of cryptocurrency worldwide . Statistics is showing rapid increase in its adaption .The transactions in bitcoins have increased rapidly over the years . It has gained more importance where the banks are failing to stand strong on the trust of customers . Bitcoin is the famous amongst all other cryptocurrencies .

The world is adopting Blockchain Technology because these technology facilitates verification of investors , the data once entered cannot be altered , the data ledgers in which the data is stored is safe , the transactions are recorded on real time basis , the trail of origin of any legder is very much evident and can be tracked . Such technology also reduces the risk of duplication . Due to all this advantages the block chan technology is given so much importance .

Answer to Q no 3

The risk involved in adopting use of cryptocurrency are :

i) There is a lot of fluctuation in the cryptocurrency - There are extreme variations .

ii) The crptocurrency has not yet gained popularity and more over some countries have not made it official yet . So investors are a bit hesitating in usng cryptocurrency .

iii) Human errors - Ultimately the recording part is the responsibility of human where we can make mistake in recording the numbers .

iv) Password can be hacked which amplifies the risk of using crptocurrency