Corporate Finance

a) Is cryptocurrency a passing fad or significant future trend? There is no easy answer to this question. Some people believe that cryptocurrency is a passing fad, while others believe that it is a significant future trend. There are a number of factors that could influence the future of cryptocurrency, including:

• The level of adoption by businesses and consumers.
• The development of new uses for cryptocurrency.
• The regulation of cryptocurrency by governments.

Currently, cryptocurrency is still in its early stages of development. The market is volatile, and there is a lot of uncertainty about the future of this technology. However, there are also a number of positive signs, such as the increasing adoption of cryptocurrency by businesses and consumers. Overall, it is too early to say whether cryptocurrency is a passing fad or a significant future trend. However, the potential benefits of this technology are significant, and it is worth watching how the market develops in the years to come. b) Is bitcoin a currency? Bitcoin is a digital or virtual currency that uses cryptography for security. A defining feature of bitcoin, and arguably its most endearing allure, is its organic nature. It is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. Whether bitcoin is a currency is a matter of debate. Some people argue that it is not a currency because it is not widely accepted as a means of payment. Others argue that it is a currency because it has all the characteristics of a currency, such as a unit of account, a medium of exchange, and a store of value. The debate over whether bitcoin is a currency is likely to continue for some time. However, there is no doubt that bitcoin is a significant technological innovation. It has the potential to revolutionize the way we think about money and payments. c) Assume you are the CFO of a fortune 500 company. Would you hold any firm cash reserves in bitcoin? If I were the CFO of a Fortune 500 company, I would not hold any firm cash reserves in bitcoin. This is because bitcoin is a very volatile asset, and its value can fluctuate wildly. As a CFO, I would be responsible for managing the company's cash reserves in a way that minimizes risk. Holding bitcoin would expose the company to unnecessary risk. However, I might consider investing a small amount of the company's cash reserves in bitcoin. This would be a speculative investment, and I would only do it if I was comfortable with the high level of risk involved. d) If you were the CFO of a fortune 500 company would you accept bitcoin as payment? If I were the CFO of a Fortune 500 company, I would not accept bitcoin as payment. This is because bitcoin is not widely accepted as a means of payment. As a result, accepting bitcoin would limit the number of customers that the company could attract. In addition, accepting bitcoin would expose the company to the risk of fraud. Bitcoin transactions are irreversible, so if a customer were to make a fraudulent purchase with bitcoin, the company would have no way to get its money back. e) Assume you have opened a Coinbase account for your personal use. Which of the three leading digital currencies (Bitcoin, Ethereum and Litecoin) would you buy first? Why? If I had opened a Coinbase account for my personal use, I would buy Bitcoin first. This is because Bitcoin is the most well-known and widely accepted cryptocurrency. It is also the most liquid, meaning that it is easy to buy and sell. I might also consider buying Ethereum or Litecoin. However, I would do more research before making a decision. I would want to understand the strengths and weaknesses of each cryptocurrency before investing my money. Ultimately, the decision of which cryptocurrency to buy is a personal one. There is no right or wrong answer. However, I would recommend doing your research before making a decision.

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