Essay Examples on Bitcoin

Bitcoin and the Problem with Existing Currencies

Bitcoin and the Problem with Existing Currencies. The greatest hindrance to the adoption of Bitcoin is the issue with the widespread use of national currencies in the contemporary economy, For all intents and purposes, everybody on the planet is utilizing cash or electronic forms of it. Consequently, the choice to utilize Bitcoin is the choice to quit using cash. The issue is that there are significant transaction costs and switching costs associated with Bitcoin. Switching costs allude to any cost required to progress from national currencies to Bitcoin. These incorporate the need to retool distributing and programmed teller machines to refresh menus and exchange records and even to figure out how to think and ascertain record keeping. On the off chance that Bitcoin is to have any expectation of replacing a national currency the benefits of using Bitcoin must be adequately better to warrant the cost of switching over. The adoption of Bitcoin is also limited by upon the aggregate number of those utilizing it. For example, the US dollar is valuable because it acts as a widely accepted medium of trade. A medium of trade is valuable just to the degree that one's exchanging partner will acknowledge it.

1 pages | 398 words