This is an individual assignment.
Assignment 8: Bitcoin
Your business is considering accepting a cryptocurrency. The strategy seems sound since people are using the currency, but the move is not costless. Costs include the technological outlay, the workforce training, the posting of multiple prices and how to adjust and respond to market movements. In addition, there is the risk that is posed by holding cryptocurrency. What if it becomes worthless? These questions only highlight the risks of getting involved in different currencies when there are already so many simple traditional means of payment from debit cards to credit cards, and so many new and evolving means of payment such as Paypal, Alipay, M-pesa, and Apple pay. Where will the future be?
You have to prepare for an initial big-think strategy meeting on how your firm should respond.
Answer the following questions:
- What are cryptocurrencies’ strengths?
- What are cryptocurrencies’ weaknesses?
- Are cryptocurrencies viable as currencies? Will they grow to be important, remain marginal, or die off? When answering this question revisit the definition of currency.