{"product_id":"an-analysis-of-el-salvador-s-failed-bitcoin-experiment-von-niklas-humann","title":"An Analysis of El Salvador's Failed Bitcoin Experiment","description":"\u003cp\u003eSeminar paper from the year 2023 in the subject Economics - Monetary theory and policy, grade: 1,3, University of Münster, language: English, abstract: This paper explores Bitcoin¿s potential as an alternative to a central bank-backed currency by analysing El Salvador¿s recent adoption of it as a legal tender. Such monetary experiments are rare, providing researchers with a unique possibility to identify the macroeconomic effects of monetary regime changes. I find that a medium of exchange is not simply created by a government adopting a new legal tender but by the broad acceptance of it by the populace, which occurs due to substantial relative benefits of the new currency to the status quo. In particular, I am going to argue that El Salvador¿s Bitcoin experiment failed, because the people of El Salvador did not perceive the need for a new currency and because Bitcoin does not fulfil any of the traditional functions of a currency.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783346821263\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783346821263","offer_id":40941567901789,"sku":"9783346821263","price":18.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/3b301e17-1c72-43f9-9c46-74464a2d37f9.jpg?v=1777178649","url":"https:\/\/shop.autorenwelt.de\/products\/an-analysis-of-el-salvador-s-failed-bitcoin-experiment-von-niklas-humann","provider":"Autorenwelt Shop","version":"1.0","type":"link"}