Needless to say, main topic of this week was the lady in this picture. We took enough time to discuss about her and her policy. In addition to this topic, I chose another article from leaders section.
A new specie
Regulators should keep their hands off new forms of digital money as Bitcoin
Some of you might have imagined “digital currency” or ”world currency” in the internet age as this article shows. That is easy to use in internet transaction without any consideration of materials, boaders and countries. Or you have already known mobile payment of safaricom “m-PESA”. This article shows us such a “futuristic currencies” so I want to share and discuss the possibility of these currencies
(1) Do you think bitcoin is convenient?
(2) Can you accept bitcoin? If you say No, why?
Summary of the article
Bitcoin = latest cult currency
1) Exist only in digital code
2) Consists mainly of computer geeks, drug-dealers, gold bugs[i] and libertarians
3) Wild fluctuation of the value from $20 to $200
4) Could be useful and widely accepted currency
5) Whose purchasing power is protected not by a central bank but by a hard limit (21m) on the number of coin that can exist.
6) Can be used for small transaction
7) Impossible to forge by using unique digital signature
8) Suitable for peer to peer market[ii] such as e-bay, Alibaba and Airbnb
10) Regulation will needed as infrastructure (banks) supporting it
11) Biggest risk is competition
[i] a person who opposes or criticizes the use of fiat currency and supports a return to the use of the Gold Standard or some other currency system based on the value of gold and other hard assets.
[ii] All dollar transactions are cleared via the American banking system. It takes another cost between like China and Britain.