A payment role is the basis of every currency. Quite remarkably, both a traditional currency as well as a modern one resemble each other when it comes to the role of legal tender. Quantitativeness and convertibility are common features for all currencies. Both Euro as well as Bitcoin meet the criteria assigned to each currency in the contemporary world. We can say for a commodity in all currencies: • Some amount of money can be proven to belong to a user. • Ownership of a certain amount of money belonging to a user can be transferred to another user. • As soon as the ownership over the amount is transferred, the owner loses ownership over the amount of money that was transferred. More attention should be paid to the differences between the Euro and Bitcoin systems.
The Euro is a product of artificially created currency, but at the same time, it is still a paper currency. Traditional money such as the euro, for example, does not experience dynamic fluctuations because there is a whole range of economic factors that are determining stability. This is contrasted with fiduciary money when the free market is used to accomplish value. In the case of bitcoin, printing cannot be done because bitcoin is not related to inflation; bitcoin is a completely separate currency from any government or banking. Bitcoin works almost like gold; bitcoin has scarcity, at times obtaining them is quite a difficult task. Bitcoin is produced in limited quantities, and it relies on the rules of mathematics and cryptography where money relies on mathematical proofs. No, bitcoin has no central bank and does not enter into any monetary policy as a component. If compared to artificial currency, it will come to the conclusion that they share only the first and second most essential functions – it has the ability to allow payments, on the one hand, and is fit for the expression of some measure of value. The latter two characteristics are completely different; Thus, another difference is observed in the analyzed benefits. This is not close to the truth by the life cycle. The phase in which the euro lives, different from bitcoin, makes it necessary that the maturity phase of the euro is also allocated by its life cycle, and most importantly, for bitcoin, the new entry into the markets. However no one will guess how long it takes to relate to the euro. That is whether the introduction phase by which bitcoin experiences is to be faced or not. This head of Microsoft Bill Gates is interested in the crypto currency.
This can be considered a sign of the interest of big business in its generation. This may be due to the fact that bitcoin has not generated any business system and does not have the base of a fixed issuer; it does not carry any defined economic status, hence its valuation. This can be seen as the simplicity of its acceptance in a world of chaos, while on the other hand, it has been an open book for speculative myths. As Adamkiewicz, 2016 says we can use it to pay at Amazon, Subway, Victoria Secret, Sears, App Store, and Gap via Bitcoin. They also informed us that it is possible to subscribe to Bloomberg with their help and even pay for a flight using PLL lots.
The launch of Bitcoin is only an estimation, however I would guess that it is going to be extremely favorable for the most sought-after crypto-currency. Since there are a limited number of them available, Bitcoin is just as similar to gold, therefore, it has a bright chance of being used as an international currency when world finances need to be reset (Cyan and Rajkanyova, 2016).
Read Also:
- The Role Of Money In The Financial System
- Bitcoin Money
- Artificial Money And Its Lifecycle
- Historical background Of Money
- Introduction: The Nature Of Money
- Demerits / Disadvantages Of Money
- 5 Functions Of Money
