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Elena Greer
Bitcoin Payments as a means of Investment and Currency
By: Elena Greer
5/9/2016
ECON 202
Overview:
This essay analyzes the various ways in which the
Cryptocurrency Bitcoin can be used as a means of currency
And as a means of investment. I’ll also explain the purchasing
Power parity using data from various bitcoin exchanges.
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Elena Greer
I. Introduction (what is Bitcoin)
Bitcoin is most often referred to as the world’s “first decentralized digital
currency”, the initial release of bitcoin took place in 2009. The founder Satoshi
Nakamoto is still a mysterious figure in regard to its inception. At the beginning the
exchange rate in regard to the USD dollar stood at a mere $0.30/1 bitcoin and during
the middle of 2013 rose upward of $1,250/1 bitcoin also abbreviated as BTC. Over
time the value of 1 Bitcoin in relation to one US dollar has fluctuated greatly making
it more of an investment than a feasible currency. Unlike standard currencies like the
US dollar and Euro, Bitcoin is not backed or regulated by any central monetary
