Idiosyncratic Analysis of Bitcoin
We have learned in this class about the historical perspective of the Markets, from the ancient market to the modern market. The most important aspect of these markets then and hence, is the MEDIUM OF EXCHANGE. During the Barter System of Market whereby commodity was being exchanged to commodity, GOLD was the standard medium of exchange. Today with modern market, such as, Stock Market, Walmart, Target, Home Depot, to name a few, the mediums of exchange are the modern currency: money, cheques, money order, travelers’ cheques, credit cards. The emergence of one of the most powerful modern medium of exchange today is called BITCOIN. It is fundamentally changing our perspective towards market transactions, and how we think about buying goods and services. Bitcoin has no central institution involved, and BITCOIN fluctuates, as the market reacts to the market mechanisms.
I hope you will enjoy this video by Morgan Spurlock about the functionality and the origin of Bitcoin as well as the idiosyncratic nature of Bitcoin as the modern medium of exchange, the risk involves, and it is volatility.
February 20, 2015
Microeconomics “Economics Today – The Micro View“:
Chapter 8A/22: microecon_C08A_22
Chapter 10A/23: microecon_C10A_23
Chatper 11A/24: microecon_C11A_24
Chapter 12A/25: microecon_C12A_25