Case brief

Bitcoin, a form of electronic currency that does not exist in physical form and can be transferred from one person to another via peer-to-peer networks, without the need for a bank or other nancial institution as intermediary. Bitcoin is more complicated than traditional currencies, but is accepted by a growing number of merchants, some reputable, and some not. Because Bitcoin requires no intermediaries to conduct transactions, it is out of the control of bankers and politicians. Bitcoin is a decentralized currency, and although it's not a physical currency that you can put in your pocket, its supporters believe that it requires less trust than traditional currenCy. There is no need to trust the qualications of central banks to monitor the currency, to hold money and transfer it, to lend money responsibly, and to safeguard our personal information. Bitcoin also allows businesses to take and make payments much more easily than through channels like PayPal and credit cards. Bitcoin allows merchants to avoid the fees associated with these services, enabling frictionless transactions. 0n the other hand, with Bitcoin, all transactions are irreversible, and if Bitcoins are somehow stolen, the victim has no recourse. Still, purchasers who use Bitcoin receive other benets, such as not being required to provide personal information to merchants. With the proliferation of security breaches experienced by major companies seemingly every week, this is now an important advantage. Bitcoin also allows peeple without access to traditional banking services to conduct nancial transactions more easily. Questions: 1. What is a digital currency? 2. What are some of the benets of using a digital currency