English Final Project Assignment

Group 4
1. Zico Nakano Morientes (88032023006)
2. Aji Budi Prakoso (88032023010)
3. Gustam Rahmat Kristyanto (88032023013)
Introduction
Bitcoin, the first decentralized digital currency, has emerged as a transformative force in
the global financial landscape, captivating the attention of investors, technologists, and
policymakers alike. Its decentralized nature, borderless transactions, and cryptographic security
present a compelling alternative to traditional fiat currencies, with the potential to redefine the
concept of global currency. Bitcoin's rise has sparked debates about its role as a global currency,
challenging the dominance of traditional fiat currencies such as the US dollar and the Euro. This
paper delves into the complexities surrounding Bitcoin's journey towards becoming a global
currency, exploring its opportunities, challenges, and potential impact on the traditional financial
system. As Bitcoin continues to gain traction and reshape the financial landscape, understanding
its implications as a global currency is crucial for policymakers, investors, and individuals
navigating the evolving world of finance.

Main supporting idea about opportunities bitcoin between world

currency
 Opportunities: Bitcoin offers a decentralized, borderless, and secure alternative to
traditional fiat currencies, presenting various opportunities for the global financial
system. It can reduce transaction costs, particularly for cross-border transactions,
benefiting individuals and businesses. Additionally, Bitcoin can increase financial
inclusion by providing access to financial services for the unbanked or underbanked. Its
limited supply and deflationary nature make it an attractive store of value and hedge
against inflation, especially in regions with unstable currencies. Furthermore, Bitcoin's
underlying technology, blockchain, enables innovative financial products and services
like smart contracts and decentralized finance (DeFi), which have the potential to
revolutionize traditional banking and finance by improving efficiency, transparency, and
security.

Main supporting idea about challenges bitcoin between world

currency
 Challenges: Despite its potential benefits, Bitcoin faces several challenges to becoming a
widely accepted world currency. Its price volatility and lack of scalability hinder its use
as a medium of exchange for everyday transactions, as the value of Bitcoin can fluctuate
significantly in a short period. Regulatory uncertainty and concerns about illicit use, such
as money laundering and tax evasion, also pose challenges to its widespread adoption.
Additionally, the energy-intensive process of Bitcoin mining, which is necessary to
secure the network and validate transactions, raises environmental concerns. Critics argue
that the carbon footprint of Bitcoin mining is substantial and unsustainable, prompting
calls for more energy-efficient and environmentally friendly alternatives to Bitcoin.
Main supporting idea about impact on traditional currencies
 Impact on Traditional Currencies: Bitcoin's growing popularity and acceptance could
potentially disrupt the dominance of traditional fiat currencies, such as the US dollar and
the Euro, as the primary medium of international trade and reserve currencies. A shift
towards Bitcoin as a world currency could reduce the influence of central banks and
governments over monetary policy and exchange rates, leading to a more decentralized
and democratized financial system. This shift could also impact the role of traditional
financial institutions, such as banks and payment processors, as Bitcoin transactions
occur directly between users without the need for intermediaries. However, the
widespread adoption of Bitcoin as a world currency faces significant challenges,
including regulatory scrutiny, technological limitations, and the need for broader
acceptance among consumers and businesses.

Main supporting idea about impact on Monetary Policies

 Bitcoin's fixed supply and deflationary nature have sparked debates about the viability of
traditional fiat currencies and the need for alternative monetary systems. Unlike fiat
currencies, which can be printed in unlimited quantities, Bitcoin has a fixed supply cap of
21 million coins. This inherent scarcity has led some to view Bitcoin as a more stable
store of value compared to fiat currencies, which are susceptible to inflation and
devaluation. However, concerns have been raised about Bitcoin's fixed supply potentially
leading to hoarding behavior, which could hinder its use as a medium of exchange.
Additionally, Bitcoin's decentralized nature challenges the traditional role of central
banks as the sole issuers of currency and controllers of monetary policy. Policymakers are
now considering the implications of digital currencies and blockchain technology on their
operations and the broader financial system. Overall, Bitcoin's existence has forced a
reevaluation of traditional monetary policies and has prompted discussions about the
future of money and finance.

Main supporting idea about future outlook bitcoin between

world currency
 Future OutlookThe future of Bitcoin as a world currency is uncertain and depends on
various factors. Regulatory developments play a crucial role, as governments around the
world grapple with how to regulate and integrate cryptocurrencies into the existing
financial system. Technological advancements, such as improvements in scalability and
transaction speed, could also impact Bitcoin's future adoption. Market acceptance is
another key factor, as Bitcoin's value and usability depend on widespread acceptance
among consumers and businesses. While Bitcoin has the potential to reshape the global
financial system, its path to mainstream adoption is likely to be challenging. Innovative
 solutions will be needed to address its current limitations, such as price volatility and
scalability, and to ensure its long-term viability as a world currency.

Conclusion
In conclusion, Bitcoin presents both opportunities and challenges as a potential world
currency. Its decentralized, secure, and borderless nature offers various benefits, such as
reducing transaction costs, increasing financial inclusion, and enabling innovative financial
products and services. However, challenges such as price volatility, regulatory uncertainty,
and environmental concerns hinder its widespread adoption. Despite these challenges,
Bitcoin's growing popularity could disrupt the dominance of traditional fiat currencies,
leading to a more decentralized and democratized financial system. Its impact on monetary
policies has sparked debates about the viability of fiat currencies and the need for alternative
monetary systems. The future outlook for Bitcoin as a world currency remains uncertain,
depending on regulatory developments, technological advancements, and market acceptance.
Overall, Bitcoin's existence has forced a reevaluation of traditional monetary policies and has
prompted discussions about the future of money and finance.