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The Pros And Cons Of Bitcoin

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It was the 15th of September 2008, the world economy was facing the most dangerous crisis since the Great Depression of the 1930’s. Lehman Brothers, one of the so called ‘Too Big To Fail’ banks, filed for bankruptcy. That same weekend Bank of America rescued Merrill Lynch from the same fate. Days later AIG, America’s largest insurer, collapsed following the downgrade of its credit rating. As the crisis unfolded, events came thick and fast. Stock markets collapsed, bank runs intensified and world trade ground to a halt. Nobody seemed to have any solutions.

Then, with ever increasing pressure mounting, governments and central banks responded in extraordinary fashion. Money and credit was created to an extent which was unheard of in human history. …show more content…

However, numerous factors such as regulation, high volatility and security have meant that Bitcoin remains very far from mainstream adoption. Looking at Bitcoin globally, acceptance is most popular in developed countries, with the highest concentrations being in Europe and North America. It could be argued that Bitcoin is most popular in countries that need it least, with the interest and price being driven primarily by speculators. Could it be that the true benefits of Bitcoin are to be found with those who need it …show more content…

The crisis currently being experienced in the developing world is of a truly frightening magnitude. With over 2 billion people living on less than $3 a day, over 2 billion adults financially excluded from the global economy and an ever increasing external debt situation, there is cause for serious concern. The problems of these heavily indebted poor countires are far from being resolved. Could it be that the real potential of Bitcoin is to be realised in the developing world? Does Bitcoin have the ability to achieve financial inclusion for over two billion people worldwide, who still lack access to basic financial services?
Back To Basics: A Brief History Of Money
Money is at the heart of any modern economy and has allowed them to develop into the highly efficient and highly specialised markets that they are today. Money has taken many forms throughout the centuries from commodities, to coins, to bills and bonds, but for a currency to become money it must function as a medium of exchange, a unit of account and a store of value. For example, dollars can be used to buy a wide range of items all over the world, they are used to measure the value of pretty much anything, and people believe that if they hold their savings in dollars their money will be

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