Why might one doubt that current forms of digital money, such as Bitcoin, will replace more traditional fiat currencies?

The private digital currencies currently do not fulfill the following key functions of money as well as government-issued fiat money:

A) standard of value

B) store of value

C) means of payment

D) unit of account

E). All of the above

Question

Joseph Hess

Business

19 October, 02:06

Why might one doubt that current forms of digital money, such as Bitcoin, will replace more traditional fiat currencies?

The private digital currencies currently do not fulfill the following key functions of money as well as government-issued fiat money:

A) standard of value

B) store of value

C) means of payment

D) unit of account

E). All of the above

+1

Answers (1)

Know the Answer?

Mcdonald · Answer 1

The correct answer is (e)

Explanation:

Digital currency, such as bitcoin is out of government's control. Similarly, the market decides their price and that makes them unpredictable. Likewise, the digital money has various problems that make them different and hard to trust on, such as, they can't be used as means of payment, the unit of account, store of value and standard value. Because fiat money is equipped with all those advantages, which is why people doubt that current forms of digital will replace traditional money.