THE MONEY IN THE NEW ERA - 1 - Can Cryptocurrencies Acquire the Role of Money? -
1.Money and the Future
Humankind has used a lot of
materials as money throughout history from barter economy until the modern
economic system. It is known that from the start of civilization until today we
have used precious metals, objects, paper and even sea shells as money.
Along with technological
developments and evolution of globalism there has been new inventions,
discoveries and terms come into our daily routine life. Naturally, It is
inevitable that these changes has emerged in economic system also. Especially
after 1990's, technology and evolution of globalism bring to our life a new
sort of money called cryptocurrency during the recent years.
In order to know or predict if any
other object or system like cryptocurrency could be replaced with the fiat or
paper money system or used as money in the future, first of all, we have to
understand the role and usage of the money throughout the history. At this
stage it is very crucial that we have to consider functions of money.
On the other hand, discussing future
role of the fiat money system and cryptocurrency is a very complicated issue.
The way of understanding these phenomena are related to consider closely and
together globalism and technological developments. After considering these
issues, it is very clear that trust must be regard as an important topic to
analyse. It must be said that even you have a powerful concept and system for
cryptocurrency, you have to make people and the community believe and trust it.
Because there is no chance for a currency to live long unless trust and belief
for it.
2.Most-Known Cryptocurrency -Bitcoin-
Even though idea of electronic money dates back to 1980s, Bitcoin just started in 2009 by its creator Satoshi Nakamoto.
According to Douma (2016: 9) Despite
the fact that the European Central Bank doesn’t take Bitcoin as a currency, it
still insists that European Central Bank is responsible for the impacts of
Bitcoin and its usage especially in Europe economic zone. “Virtual currency
schemes do indeed fall within central banks’ responsibility as a result of
characteristics s1453297 10 shared with payment systems, which give rise to the
need for at least an examination of developments and the provision of an
initial assessment” (European Central Bank, 2012).
At the same time with European
Central Bank. the European Banking Authority also says, “the usage of the term
‘currency’ is misleading for several reasons, including the insinuation that it
is therefore exchangeable against other currencies, which may not necessarily be
the case” (European Banking Authority, 2014). From this we understand that the
European Central Bank holds central banks responsible for transactions made by using
Bitcoins (to protect people).
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