Bitcoins are defined as a "peer-to-peer decentralized digital currency." The supply of bitcoins is not controlled by the government or any other central agency. The value of each bitcoin is determined on the basis of supply and demand and is defined in terms of dollars. New bitcoins can be generated through a process called "mining." However, new bitcoins will not be created once there are a total of 21 million bitcoins in existence. Some commentators feel that bitcoins can eventually replace most of the major currencies in the world.What are some of the issues with bitcoins replacing major currencies?

(Check

all that

apply.)

A.

Bitcoin deposits are not insured by the government.

B.

The value of a bitcoin is highly volatile and so people that hold them may lose money.

C.

Fiat money is generally worthless without a government decree that it is legal tender.

D.

Bitcoins are nonconvertible and therefore not acceptable for most types of purchases.

Traditional currencies are controlled by central banks.