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

Bitcoins vs gold - Essay ExampleBitcoin system is entirely dependent on internet platforms, which are readily unattached across the globe beca persona 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 non a reliable medium of exchange with dependable inclose of value (Kudlow 1). On the contrary, money has a store of value. I ts 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 systematic fluctuations in prices do not affect it. Digital currency use exit therefore not pose a satisfying effect on money use. The reason for this is that money system posses prize features like security and reliability that the digital currency system lacks.There are viewpoint that the locomote 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