What Is Money? From Commodities to Virtual Currencies/Bitcoin

12 Pages Posted: 19 Mar 2014

See all articles by Benton E. Gup

Benton E. Gup

University of Alabama - Culverhouse College of Commerce & Business Administration

Date Written: March 14, 2014

Abstract

Some forms of money have been used since 2,200 BC. What constitutes money evolved from commodities with intrinsic value, such as gold, to commodity- backed paper money. In the United States, this was replaced by “fiat” money issued by the Federal government that is “legal tender” for all debts public and private. Eventually, payments evolved to credit cards, debit cards, and various forms of electronic payments. Virtual currencies, such as Bitcoin, are the latest innovation. They act like money but have no intrinsic value and are not legal tender. This article examines the pros and cons of Bitcoins.

Keywords: Money, currency, virtual currency, cryptocurrency, Bitcoin

JEL Classification: E42

Suggested Citation

Gup, Benton E., What Is Money? From Commodities to Virtual Currencies/Bitcoin (March 14, 2014). Available at SSRN: https://ssrn.com/abstract=2409172 or http://dx.doi.org/10.2139/ssrn.2409172

Benton E. Gup (Contact Author)

University of Alabama - Culverhouse College of Commerce & Business Administration ( email )

Culverhouse College of Business
Tuscaloosa, AL 35487-0223
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
807
rank
28,659
Abstract Views
4,122
PlumX Metrics