NAME: MUHAMMAD MUDASSIR SOHAIL

APPLICANT ID: 22410

COURSE: MACRO ECONOMICS
INSTRUCTOR: MISS JAWERIA
ASSIGNMENT: 2
A hypothetical case would be the use of Bitcoin as a medium of exchange, or money. While
Bitcoin is an asset that is not backed by any central bank or government, it does have some
properties that could make it a good choice as a medium of exchange. For starters, Bitcoin is
highly divisible, meaning it can be broken down into smaller units, making it easier to use for
smaller transactions. This can help with liquidity and make it easier for sellers to accept
payments. Bitcoin is also relatively secure, with a decentralized ledger that can be used to verify
transactions. This makes it resistant to counterfeiting and fraud, which is an important feature
when considering any form of money. However, Bitcoin also has some drawbacks that make it
less than ideal as a medium of exchange. For example, it is not very stable in terms of price,
and its value can fluctuate significantly over time. This could make it difficult for buyers and
sellers to accurately assess the value of a transaction when using Bitcoin. Additionally, Bitcoin is
not widely accepted at many places as a form of payment, meaning it may not be very useful for
everyday transactions. This could limit its usefulness as a medium of exchange. Overall, while
Bitcoin has some beneficial features.