The Bitcoin and the Current Money...

  

Currently money in paper money is universally accepted for purchase and payments of all things of our daily life, the check, deposit or other means of payment that is convertible into paper money are also considered money. Money fulfills three essential functions in the economy: unit of account, means of payment and reserve of value, in the unit of account is the measure of the value of a patrimony, in the means of payment is efficient for any purchase or payment and as reserve of value, it allows that the wealth is not only patrimony, also that a part of this reserve is liquidity and allows to be valued enough for the purchasing power.

Bitcoin complies with the condition of unit of account, but it still can not be said that it fulfills the other two functions to be used as ordinary money, although in various parts of the world it is being accepted, it still can not be spoken as one universal acceptance. Nor is it spoken of as a reserve of value because of its variation in prices. However Bitcoin over time can change these three functions and possibly become money like paper money, and with current or future technology could be implemented globally. Some advantages that this money currently represents would be:

• Money transfers at almost zero cost.

• Offers payment privacy.

• It is not a local currency.

• The government entity will not affect this money through monetary policies.

Some limitations:

• Be accepted as a universal means of payment.

• Regulation of Bitcoin by government entities in the future.

•Informatic security.

• Be Bitcoin and not other cryptocurrency that are handled in the future.

• In the event of an economic crisis occurring, central banks could not make loans to address this problem.

Still thinking Who will predominate in the future: cryptocurrency or paper money ?, will depend on many factors and since from my point of view would not be an immediate universal, since depending on the need of each country could consider this virtual money as a non-total but partial option for a more thorough control of paper money, and in this way the Bitcoin will gradually occupy this new form of money until established in any geographical point. However until now I do not see the extinction for a long time in full of paper money but I can think of the management of trade in both modalities.

Sources:

http://www.revistaportfolio.com/wp-content/uploads/2014/07/portfolio-63-bitcoin.pdf

Image:

https://coinmarketdiary.com/tag/invertir-en-bitcoin/

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