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Digital gold: Is Bitcoin the future of money?


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Wild swings in the value of cryptocurrencies have once again raised questions about the fundamental role and function of cryptocurrencies such as Bitcoin. Is Bitcoin a digital currency that represents the future of money? Is it a form of digital gold a stable store of value and an inflation hedge? Or is Bitcoin a purely speculative asset that is prone to massive price swings?
To tackle these questions, one must first grasp the unique status and role of money in modern economies. In the dystopian novel “The Mandibles: A Family, 2029-2047” by Lionel Shriver, a character (an economics professor at Georgetown University) observes: “Money is emotional. Because all value is subjective, money is worth what people feel it’s worth. They accept it in exchange for goods and services because they have faith in it. Economics is closer to religion than science. Without millions of individual citizens believing in a currency, money is colored paper.” ....

Lionel Shriver , Katharina Pistor , Georgetown University , லியோனல் ஶ்ரைவர் , காதரின பிஸ்டர் , ஜார்ஜ்டவுன் பல்கலைக்கழகம் ,