ENGL 317 Lecture Notes - Lecture 8: Carbon Footprint, Bitcoin, Cryptocurrency
30 May 2018
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Week 10 (4-6-18)
1. Come up with three questions that you would like to ask the author of "Bitcoin Plants a
Foothold in Central Maryland" to further your understanding of cryptocurrency.
a. What determines the value of bitcoin?
Supply and demand determine the price of a bitcoin. When demand for bitcoins
increases, the price increases, and when demand falls, the price falls. There is only a
limited number of bitcoins in circulation and new bitcoins are created at a predictable
and decreasing rate, which means that demand must follow a certain level of inflation
to keep the price stable.
b. Why should people trust bitcoin over actual money?
c. Since bitcoin is anonymous, wouldn’t that make it easier for people to buy illegal
things?
2. What do you think the reasoning is behind producing a local currency like the Baltimore
notes?
It strengthens the community by providing built-in incentives for money to flow into the
local economy and to continue circulating there, without being drawn out by national
corporate chains. It increases business for local merchants, allowing them to diversify
their selection or hire new employees. Ultimately, it leads to an increase in local suppliers
and the establishment of longer local supply chains, further strengthening the merchant
community. This also reduces the need for goods and services to be delivered from
farther away, which cuts the use of oil and improves the area’s carbon footprint.
3. What are the positive and negative effects of a nation that has multiple currencies?
Positive: Diverts more customers because they can buy things online using their currency
which makes it more comfortable for them, because they won’t have to pay extra money
for currency conversion and it also helps the business grow as well.
Negative: Multi-currency accounts can be more work to manage effectively than a
straightforward single currency account
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