Breakdown of Monetary systems Essay Example
Louise Hall
Breakdown of Monetary systems
South West Florida
College
Final Project
Macro Economic
Break down of Monetary Systems
Part I (40 points)
Using the given Case Study:
Question 1 (10 points)
In countries where the monetary system has broken down, what are some alternatives to which people have resorted to carry out exchange
There are many alternatives to money. Gold for one has been the alternative for money for centuries. Gold coins are the smallest unit of currency that can actually be traded with another commodity. Since gold follows the 6 properties of ideal money (durability, Portability or Transportability, Divisibility, Uniformity, Non counterfeit ability, Acceptability according to me it is one of the safest bet in many countries. Another possibility would be Bit coin. This is a very innovative currency that is digital. According to the Bitcoin.org website: “Bit coin is a consensus network that enables a new payment system and a completely digital money”(Bitcoin.org, 2013). It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective,” Bit coin is pretty much like cash for the Internet. Bit coin can also be seen as the most prominent triple entry book keeping system in existence” (Bitcoin.org, 2013). From a user perspective, Bit coin is nothing more than a mobile app or computer program that provides a personal Bit coin wallet and allows a user to send and receive bit coins with them. This is how Bit coin works for most users. Behind the scenes, the Bit coin network is sharing a public ledger called the "block chain". This ledger contains every transaction ever processed, allowing a user's computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses, allowing all users to have full control over sending
Breakdown of Monetary systems
South West Florida
College
Final Project
Macro Economic
Break down of Monetary Systems
Part I (40 points)
Using the given Case Study:
Question 1 (10 points)
In countries where the monetary system has broken down, what are some alternatives to which people have resorted to carry out exchange
There are many alternatives to money. Gold for one has been the alternative for money for centuries. Gold coins are the smallest unit of currency that can actually be traded with another commodity. Since gold follows the 6 properties of ideal money (durability, Portability or Transportability, Divisibility, Uniformity, Non counterfeit ability, Acceptability according to me it is one of the safest bet in many countries. Another possibility would be Bit coin. This is a very innovative currency that is digital. According to the Bitcoin.org website: “Bit coin is a consensus network that enables a new payment system and a completely digital money”(Bitcoin.org, 2013). It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective,” Bit coin is pretty much like cash for the Internet. Bit coin can also be seen as the most prominent triple entry book keeping system in existence” (Bitcoin.org, 2013). From a user perspective, Bit coin is nothing more than a mobile app or computer program that provides a personal Bit coin wallet and allows a user to send and receive bit coins with them. This is how Bit coin works for most users. Behind the scenes, the Bit coin network is sharing a public ledger called the "block chain". This ledger contains every transaction ever processed, allowing a user's computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses, allowing all users to have full control over sending