Bitcoin’s Influence on the Global Economy

Bitcoin’s Influence on the Global Economy • Introduc*on • • Provide an introduc/on to the topic, highligh/ng the growing importance of Bitcoin and its repercussions on the worldwide economic landscape. Key Impacts § • • • • • Posi/ve Aspect: Bitcoin’s success has s/mulated the development of other digital currencies, including central bank digital currencies (CBDCs), with the poten/al to modernize payment systems. Nega/ve Aspect: The use of digital currencies brings forth security and regulatory challenges that necessitate aMen/on. 4. PorFolio Diversifica*on: • • • Posi/ve Aspect: The fundamental blockchain technology behind Bitcoin has found applica/ons across various sectors, enhancing efficiency and transparency in various processes. Nega/ve Aspect: However, the adop/on of blockchain also raises concerns about privacy and security. 3. Influence on Other Digital Currencies: • • Posi/ve Aspect: Bitcoin has emerged as a cap/va/ng alterna/ve investment vehicle, drawing interest from both individuals and ins/tu/ons, offering significant profit prospects. Nega/ve Aspect: Yet, the high price vola/lity of Bitcoin poses substan/al investment risks and has the poten/al to affect the stability of tradi/onal financial markets. 2. Blockchain Technology: • • Financial Market Vola*lity: Posi/ve Aspect: Bitcoin’s presence allows for diversifica/on of investment porNolios, aiding in risk mi/ga/on amid fluctua/ons in tradi/onal markets. Nega/ve Aspect: Investment in Bitcoin carries significant risks depending on regulatory and adop/on factors. 5. Role as a Payment Instrument: • • Posi/ve Aspect: Some businesses have commenced accep/ng Bitcoin as a payment method, expanding interna/onal payment op/ons. Nega/ve Aspect: Bitcoin’s transac/on speed and occasionally high fees may impede its everyday usage in transac/ons. • 6. Influence on Monetary Policy: • • • Challenges and Considera*ons • • Suggest recommended readings, ar/cles, or resources for further explora/on of the subject. Homework or Assignments (if applicable) • • Summarize the principal takeaways from the lecture, underscoring the dynamic nature of the cryptocurrency market and the necessity of staying updated with its evolu/ons and regula/ons. Addi/onal Resources • • Delve into challenges such as addressing economic dispari/es, balancing economic integra/on with na/onal sovereignty, and responding to the repercussions of globaliza/on and compe//on from emerging economies. Conclusion • • Posi/ve Aspect: Some na/ons perceive Bitcoin as an investment asset capable of mi/ga/ng infla/on and addressing monetary policy challenges. Nega/ve Aspect: Governments also express apprehensions regarding the poten/al illicit use of Bitcoin, such as money laundering and illicit trade. Assign per/nent homework or coursework to reinforce the lecture material and specify deadlines and submission instruc/ons. Q&A and Closing Remarks • • . Encourage students to pose any final ques/ons or seek clarifica/ons. Conclude with closing remarks and set expecta/ons for the subsequent lecture.