WEEK 07 Assignment FNT 103.docx - WEEK 07 Assignment FNT...

WEEK 07 Assignment FNT 103
Submitted by: Ivan Vincent Borgonos
Student number: 122764210
Is BitCoin a good (a) Store of Value, (b)
Unit of
Account, (c) Medium of Exchange?
(300
hundred words)
Is BitCoin a good store of value?
BitCoin is not good store of value because it is very volatile. It is
true that BitCoin prices can go up really high. But it can also go
down really low. This year BitCoin value went down to 54% in
about a month.
Example:
Early this year Elon Musk the CEO of Tesla company announced
that they will accept BitCoin as a mode of payment when buying
Tesla Cars. The prices of BitCoin went up. However, when he
mentioned that they wont accept it as a Mode of payment. The
prices of the BitCoin went down. This is a good example of BitCoin
being not a good store of value.
Resources: -
news/bitcoin-loses-store-value-virtue?nopaging=1
BitCoin is relatively new to the market. Which means that not
many people are familiar with it. Given that BitCoin itself is
complex enough for an average people to fully grasp its concept.

An average people will not accept BitCoin as value since it is a
concept that he/she doesn’t understand. Therefore, it is not a
good store of value because If the majority of people do not think
that an asset is valuable and believes it will remain not valuable
in the future, it cannot be utilized to store wealth.