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This assignment focuses on BitCoins as a possible replacement for the dollar and other currencies.

During Week 5, we studied concepts related to money, and the role and objectives of the Federal Reserve in managing the U.S. money supply. The macro paper for this course will address the economics of bitcoins, a technology-based alternative to a currency that is managed by a country’s monetary authorities.

First, read this article and listen to this podcast:

You may read other articles as well, and include them in your bibliography.

Using these resources:

  1. Explain the functions of money.
  2. Explain the two objectives of the Federal Reserve in managing the U.S. money supply, and how it adjusts the money supply to meet them.
  3. What functions of money are served by bitcoins?
  4. For you as an individual, what are the drawbacks or risks of bitcoins, as compared to using the U.S. dollar?
  5. Do you think that bitcoins can be useful for an economy, such as the U.S. economy?

Your paper should:

  • be a total of 800 to 1200 words,
  • include a bibliography with at least two references, presented in APA style,

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