Bitcoin’s Influence on the Global Economy • Introduc*on • Provide an introduc/on to the topic, highligh/ng the growing importance of Bitcoin and its repercussions on the worldwide economic landscape. • Key Impacts § Financial Market Vola*lity: • Posi/ve Aspect: Bitcoin has emerged as a cap/va/ng alterna/ve investment vehicle, drawing interest from both individuals and ins/tu/ons, oﬀering signiﬁcant proﬁt prospects. • Nega/ve Aspect: Yet, the high price vola/lity of Bitcoin poses substan/al investment risks and has the poten/al to aﬀect the stability of tradi/onal ﬁnancial markets. • 2. Blockchain Technology: • Posi/ve Aspect: The fundamental blockchain technology behind Bitcoin has found applica/ons across various sectors, enhancing eﬃciency and transparency in various processes. • Nega/ve Aspect: However, the adop/on of blockchain also raises concerns about privacy and security. • 3. Inﬂuence on Other Digital Currencies: • Posi/ve Aspect: Bitcoin’s success has s/mulated the development of other digital currencies, including central bank digital currencies (CBDCs), with the poten/al to modernize payment systems. • Nega/ve Aspect: The use of digital currencies brings forth security and regulatory challenges that necessitate aMen/on. • 4. PorFolio Diversiﬁca*on: • Posi/ve Aspect: Bitcoin’s presence allows for diversiﬁca/on of investment porNolios, aiding in risk mi/ga/on amid ﬂuctua/ons in tradi/onal markets. • Nega/ve Aspect: Investment in Bitcoin carries signiﬁcant risks depending on regulatory and adop/on factors. • 5. Role as a Payment Instrument: • Posi/ve Aspect: Some businesses have commenced accep/ng Bitcoin as a payment method, expanding interna/onal payment op/ons. • Nega/ve Aspect: Bitcoin’s transac/on speed and occasionally high fees may impede its everyday usage in transac/ons.
• 6. Inﬂuence on Monetary Policy: • Posi/ve Aspect: Some na/ons perceive Bitcoin as an investment asset capable of mi/ga/ng inﬂa/on and addressing monetary policy challenges. • Nega/ve Aspect: Governments also express apprehensions regarding the poten/al illicit use of Bitcoin, such as money laundering and illicit trade. • Challenges and Considera*ons • Delve into challenges such as addressing economic dispari/es, balancing economic integra/on with na/onal sovereignty, and responding to the repercussions of globaliza/on and compe//on from emerging economies. • Conclusion • Summarize the principal takeaways from the lecture, underscoring the dynamic nature of the cryptocurrency market and the necessity of staying updated with its evolu/ons and regula/ons. • Addi/onal Resources • Suggest recommended readings, ar/cles, or resources for further explora/on of the subject. • Homework or Assignments (if applicable) • Assign per/nent homework or coursework to reinforce the lecture material and specify deadlines and submission instruc/ons. • Q&A and Closing Remarks • Encourage students to pose any ﬁnal ques/ons or seek clariﬁca/ons. • Conclude with closing remarks and set expecta/ons for the subsequent lecture. .