People should argue bitcoin is not a good medium of exchange.
They should also explain how well does bitcoin behave as speculation investment.
At least 800 words in APA style
Econ 305: Assignment FM/PIM
The FM/PIM stands for “failed money / privately-issued money”.In this project you form a group that studies and reports on either a failed currency (for example, the Zimbabwean Dollar or the German Papiermark) or a privately-issued money (which may include possible future forms of money such as Bitcoin or Etherium). The report can also be on both: a failed, privately-issuedmoney. The report itself is relatively short, just over 1000words, so make sure it builds on a solid analysis and is written well.
This assignment is done in groups of normally three people [email me by asap if you would like to request to work with more or fewer group members (clarifying why). I like multiple students in groups as you will all learn from each other!]. Group members will get the same grade. You are responsible for finding a group and making arrangements regarding a fair working division with your group members. If you want, I can match you with other students if need be. If you would like to make use of this offer, please email me this week, i.e. by March 1at the latest. If I don’t hear back from you by March 1, then I will assume you have found a group of three members and I will learn about who are the exact members by the time you submit the assignment (no need to confirm at this monent who is in your group)
Somewhat more detailed instructions
The project is fairly open actually, but the report should be as brief as possible on the necessary background information,and as lengthy as possible on presenting a “strong analysis”. What constitutes a strong analysis? This is always the big question. Yet… find some thoughts on this very matter next.
For example, in case of a failed currency project, answer convincingly: “In what sense did the currency fail” and “Why exactly did it fail?” [e.g. what agency issued the currency? (A central bank?), was the central bank independent? Was there any government interference and how did it play out, what were the mechanics behind the failure?Any serious counterfeiting issues?Any competing monies?]
In case of a current or future privately-issued money, answer convincingly: “How well does it perform the Functions of Money listed in Chapter 3”, “What are the indicators of its current success or failure?”, “Can you convincingly gauge what is the likelihood of its ultimate success?”, etc. The question of the likelihood of success is not easy, but we have learned it is relevant to learn about the opportunities and incentives of the issuer to “flood the market” at some stage, the possibility to counterfeit or “crack” the currency. Also, will regulators at some stage regulate against this possible form of money? Why? Finally, have a look at the concept of “network externalities” (industrial organization literature). How do possible network externalities play out for the money of your choice?
In all likelihood the brainstorming I did above will have missed out on some relevant questions. Ultimately, your group members will ask and answer the relevant questions. In doing so, draw on sources including relevant Econ 305 material. [Again, the “Functions of Money” (Ch.3), the “Money Supply Process” (Ch.14), and the incentives and independence of the issuer if the money is a currency (see Ch.13, if the issuer is a Central Bank) come to mind.]
Writing hints & grading
There is no unique way to write a good report. Yet, a good report (a) reflects a strong analysis and (b) is written well. A good write-up means a combination of a few things: correct spelling and grammar, strong structure, good focus, and efficient use of words.
I will base my report grade on the following:
- Does the report satisfy the style requirements and is it handed in on time?
- Is the analysis strong?
- Has it been written well?
- Imagine the intended audience (level) arethe fellow students in our class who have just passed this class.
- Go beyond journalism. Precision matters – don’t make vague statements. Example fromWikipedia on Blockchain: A blockchain is “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way”à nobody that doesn’t already understand the concept well gets this.
- Don’t introduce concepts you don’t need. As for the concepts you do introduce (and therefore need): explain carefully unless your audience already knows (in which case you should not waste words to explain)
- Working with meaningful section headers will make the report structure very clear. One section the reports must have is the “Introduction”
- The ideal introduction reads very well and contains everything-but-the-details (including the conclusion of the piece!)
- Make one point per paragraph
- The first sentence of each paragraph is usually the most important one
- Use short and to-the point sentences
- If time permits, perhaps let students outside the group (perhaps even outside the course) comment on your abstracts. Can they digest your write-up fast and still be clear on the argument? Do they believe it presents a “critical analysis” [Be aware:your friends may be trying to be friendly with you! Find a way to detect what they really think&Also, do they really understand?]
Style requirements and how to submit
Reports are to be typewritten. Pages should be numbered. Target 1100-1200 words, excluding references and title page. Include a title page listing the course number and title, the names and student IDs of the students in your group, and a word count (excluding references & title page).
Cite all the sources you use, just like you would if you were to write a paper. Please cite using as in what is called the APA reference style (example: “Mishkin and Serletis (2016) argue that the functions of money are the following…”).
The Writing Centrehas information on writing, but those who took 225 will know a lot as well: https://www.uvic.ca/learningandteaching/cac/undergraduate/self-help/index.php#acc-writing-tips
Submit electronically and in hardcopy as follows:
- Submit copy of the project report in the CourseSpacesdropboxby Monday 1 April at 11.59pm. (no PDFs please: Doc or Docx of ODF)
- Submit an identical physical copy of the project report in the 305 assignment boxby Sunday2April by 10.00am.