Functions of Money

Functions of Money

Justin Hedberg

Liberty University

FUNCTIONS OF MONEY

Article Reference

Casey, M., & Vigna, P. (2015). Bitcoin and the Digital-Currency Revolution. Wall Street Journal. Retrieved from http://www.wsj.com/articles/the-revolutionary-power-of-digital-currency-1422035061

According to Casey and Vigna (2015), the rise of Bitcoins has caused a different perception from economists. The article focuses on how the currency has grown and fell from a promising currency to another scheme to fleece people. Bitcoins are a new currency that has changed the use of currencies. The article reveals that there is a mystery about who started the currency. However, that is not in any way important to the authors. What is of concern is how money has continued to loose shape and evolve. Bitcoins are virtual money used in online money exchange and has been accepted in various economies.

Money is no longer just the Dollar or the Pounds; the article reveals that people have devised ways of stealing from the Bitcoin currency. This has led to the demand of a rationale on how to monitor the growth and decline of the new currency. The article investigates how the new form of exchange has risen and fallen in value over a short span of time. The article exposes the loss of approximately half-billion dollars worth of Bitcoins in an online exchange platform in Tokyo. This has been a blow to the use of Bitcoins as it has links to illegal deals and money laundering. In 2014, the digital money lost about two-thirds of its value, and the trend continued into 2015.

The author must have written the article to examine the economic implications of a dying digital currency. Also, the authors worry about the use of Bitcoins in illegal activities just as much as it is loosing value very fast. According to the authors, the inflation rate of the Bitcoin is steadily falling, and this can lead to an end to the digital money.