Evaluating a Digital Asset as Money
Imagine a new, purely digital asset is created. It is secure and can be transferred between any two people in the world instantly. However, its value relative to goods and services can change by as much as 20% in a single day, and each transaction, no matter how small, costs the equivalent of $5. Based on the essential roles an asset must fulfill to function effectively as money in an economy, evaluate the likelihood of this digital asset replacing government-issued currency. Justify your conclusion.
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Introduction to Macroeconomics Course
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The Economy 2.0 Macroeconomics @ CORE Econ
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