ECO4223 SCRIPT COMPLETE ANSWERS
GRADED A+
◉ - explanations for big swings in the price
- claiming it as a bubble
Answer: Thinking about the fundamental value of bitcoin as ρV
also suggests _________________________________________ that don't
amount to _____________________________.
◉ - makes bitcoin more useful for making transactions today,
which affects V; or
- increases the likelihood that bitcoin will be useful in the future,
which affects ρ
Answer: In particular, we should expect the price of bitcoin to rise
anytime something:
◉ - makes bitcoin less useful for making transactions today, which
affects V; or
- decreases the likelihood that bitcoin will be useful in the future,
which affects ρ
Answer: In particular, we should expect the price of bitcoin to fall
anytime something:
◉ network effects, the lack of government support.
,Answer: Moreover, these demand shocks have big consequence
due to __________________ and the lack of ___________________________.
◉ anchor expectations, mitigate undesirable macroeconomic
fluctuation
Answer: An ideal money would _________________________________
about its future purchasing power and
________________________________________________________.
◉ velocity is stable.
and velocity is not stable.
Answer: Bitcoin is an ideal supply mechanism if and only if
◉ its shortcomings, better than the available alternatives
Answer: Hence, the argument for bitcoin must be that, despite
________________________, it is
_________________________________________________________.
◉ - benefits < cost; or,
- benefits ≥ cost, but those benefits could be realized at an even
lower cost
Answer: Does Bitcoin Waste Energy:
The conventional view is that bitcoin wastes a lot of energy.
It certainly uses a lot of energy. But that's only wasteful if:
, ◉ Argument 1: There is no benefit.
Argument 2: Some costs are "external".
Answer: Does Bitcoin Waste Energy:
What are the 2 arguments?
◉ - Network effects
- Government obstacles
- Available alternatives
- Bitcoin has a first-mover advantage
- Alt-coins have a second-mover advantage
- Central Bank Digital Currencies (CBDCs) benefit from
government support
Answer: Will Bitcoin Ultimately Prevail:
To consider this question, we must first be clear about what
"prevailing" means. Beware the all-or-nothing fallacy!
Several factors affect the future use of bitcoin: (6)
◉
Answer: Quiz 7
GRADED A+
◉ - explanations for big swings in the price
- claiming it as a bubble
Answer: Thinking about the fundamental value of bitcoin as ρV
also suggests _________________________________________ that don't
amount to _____________________________.
◉ - makes bitcoin more useful for making transactions today,
which affects V; or
- increases the likelihood that bitcoin will be useful in the future,
which affects ρ
Answer: In particular, we should expect the price of bitcoin to rise
anytime something:
◉ - makes bitcoin less useful for making transactions today, which
affects V; or
- decreases the likelihood that bitcoin will be useful in the future,
which affects ρ
Answer: In particular, we should expect the price of bitcoin to fall
anytime something:
◉ network effects, the lack of government support.
,Answer: Moreover, these demand shocks have big consequence
due to __________________ and the lack of ___________________________.
◉ anchor expectations, mitigate undesirable macroeconomic
fluctuation
Answer: An ideal money would _________________________________
about its future purchasing power and
________________________________________________________.
◉ velocity is stable.
and velocity is not stable.
Answer: Bitcoin is an ideal supply mechanism if and only if
◉ its shortcomings, better than the available alternatives
Answer: Hence, the argument for bitcoin must be that, despite
________________________, it is
_________________________________________________________.
◉ - benefits < cost; or,
- benefits ≥ cost, but those benefits could be realized at an even
lower cost
Answer: Does Bitcoin Waste Energy:
The conventional view is that bitcoin wastes a lot of energy.
It certainly uses a lot of energy. But that's only wasteful if:
, ◉ Argument 1: There is no benefit.
Argument 2: Some costs are "external".
Answer: Does Bitcoin Waste Energy:
What are the 2 arguments?
◉ - Network effects
- Government obstacles
- Available alternatives
- Bitcoin has a first-mover advantage
- Alt-coins have a second-mover advantage
- Central Bank Digital Currencies (CBDCs) benefit from
government support
Answer: Will Bitcoin Ultimately Prevail:
To consider this question, we must first be clear about what
"prevailing" means. Beware the all-or-nothing fallacy!
Several factors affect the future use of bitcoin: (6)
◉
Answer: Quiz 7
