It seems as if the borders between cryptocurrencies and fiat money become blurrier. Since the use of cryptocurrencies for payments is increasing while at the same time some countries are trying to restrict its use and develop own digital money, it’s unclear if Bitcoin could be considered a new form of money. In this paper, the author will explain the differences between both and try to find an answer to the question if cryptocurrencies can perform like traditional money.
Inhaltsverzeichnis (Table of Contents)
- LIST OF FIGURES
- ABBREVIATIONS
- INTRODUCTION
- WHAT IS MONEY
- WHAT IS BITCOIN
- CAN BITCOIN PERFORM LIKE MONEY?
- CONCLUSION
- REFERENCES
- LIST OF ANNEX
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the capabilities of cryptocurrencies, particularly Bitcoin, to function as a viable alternative to traditional forms of money. The paper examines the properties of money, explores the nature of Bitcoin and its potential as a means of exchange, store of value, and unit of account, and ultimately aims to answer the question of whether cryptocurrencies can effectively perform like traditional money.
- The definition and properties of money
- The nature and characteristics of Bitcoin
- The potential of Bitcoin as a means of exchange, store of value, and unit of account
- The challenges and hurdles faced by cryptocurrencies in achieving global acceptance
- The relationship between cryptocurrencies and traditional fiat money.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter provides a brief overview of recent developments in the cryptocurrency market, particularly the impact of China's restrictions on cryptocurrency trading and Tesla's decision to stop accepting Bitcoin for payments. The introduction highlights the volatility of Bitcoin and its current struggles to gain widespread acceptance as a payment method.
- What is Money: This chapter explores the traditional definition of money and its three essential functions: means of exchange, store of value, and unit of account. The chapter also discusses different forms of money throughout history, including commodity money, representative money, and fiat money.
Schlüsselwörter (Keywords)
The paper focuses on key concepts such as Bitcoin, cryptocurrency, traditional money, means of exchange, store of value, unit of account, fiat money, central bank digital currency (CBDC), decentralized finance (DeFi), and global acceptance.
- Quote paper
- Julian Dressler (Author), 2021, Bitcoins and Blockchain: Can Cryptocurrencies perform like Traditional Money?, Munich, GRIN Verlag, https://www.grin.com/document/1075960
