Blockchain Technology and Cryptocurrencies
Completion requirements
Cryptocurrencies and blockchain technology are some of the means of how technology is entering the financial world. As technology advances, so does the financial products and the provision of these products and services. After watching this video and going through the attached slides, you will learn more about how technology is shaping the world of finance. Is the emergence of multiple non-central bank-backed cryptocurrencies threatening traditional central bank-backed currencies?
Shaping the Financial World
Money
Plato:
- Money is a 'symbol' devised for the purpose of exchanges
- Opposed using gold or silver for money
- Solves the 'problem of commensurability'
- 'Money is a guarantee that we may have what we want in the future. Though we need nothing at the moment it insures the possibility of satisfying a new desire when it arises'.
- Four absolutes to have 'Universal Value':
- Durable, Portable, Divisible& Intrinsic Value
Modern Characteristics:
Durable, Portable, Divisible, Uniform, Acceptable, & Stable
What is the Role of Money?
- Medium of exchange
- Store of value
- Unit of account
Fiat Currency
- Represented by:
- Central Bank Notes
- Central Bank Reserves &
- Commercial Bank Deposits
- Reliesupon System of Ledgers
- Very Significant Network Effects:
- Accepted for Taxes
- Legal Tender for All Debts Public & Private
- Accepted throughout Economy/Optimum Currency Area
Money's Future?
