Digital Currency for a Digital Age
DECEMBER 02, 2013
"Can Bitcoin Become a Major Currency?" - A working paper by economists Lawrence H. White and William J. Luther
- Money is a medium of exchange, unit of account, and store of value that helps people trade for goods and services.
- Throughout history, governments have claimed a monopoly on money through exclusive rights to print currency and through central banks.
- New digital "cryptocurrencies" meet all the standards of money, but are decentralized, taking money out of the realm of public policy and central planning and placing it in the hands of the people actually using it.
- Digital cryptocurrencies allow for quick monetary exhange between any two people anywhere on the planet, regardless of whether they have a bank account or credit card.
- When currencies are allowed to compete, individuals are no longer locked into saving their earnings in a single government-run currency whose value can be diminished through inflation.
- Many sellers currently accept digital cryptocurrencies, such as bitcoin, for all manner of products and services, including food, clothing, and software.
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