Question

1. “bitcoin.”   For one of the “functions of money” identified and explain why bitcoin does or does not meet that recognized function of money.  
2. For the Libra, as proposed explain how it will or it will not meet one of the functions of money.
3. Libra, how is it different from PayPal© or ApplePay©?

Answer 1

• Bitcoin is famously known as the internet money. Though a lot of people trade bitcoin in the market it is not a legal tender. There are few functions of money that are universally recognized and bitcoin does not fulfill those functions.

Though bitcoin is traded, it is not a medium of exchange which is one of the most important functions of money. Bitcoins are not uses for purchasing or selling goods or services as money normally is. It is thus not a medium of exchange.

Other functions of money that bitcoin does not fulfill are store of value and or as a unit of account. Neither can bitcoins be stored for future needs nor are they used as a unit of account in legal practices.

•   Libra is a type of cryptocurrency proposed to be launched by Facebook. It cannot be considered as money as it does not fulfill some functions that a money fulfills. Libra cannot be used as a store of value and thus it does not qualify as money. It is different fro Paypal as it uses cryptocurrency like Bitcoin which is not used by Paypal. Paypal does not uses it's own currency unlike Libra. This is where all the difference lies.