The world’s first Bitcoin economy

Welcome to the new economy!

Speculations about whether Bitcoin can actually enter our everyday economic activity have been rampant all over the news and social media. Economists are making bets about it, and everyone is wondering how will Bitcoin affect them.

But now, a new experiment about to be launched at MIT is set to put hypothetical arguments to rest, by establishing a real (albeit limited) Bitcoin economy.

Every single undergraduate student at MIT will receive $100 worth of Bitcoins, to do with as they please. Students will have the option of cashing their Bitcoins out, i.e. converting them into USD, or spending them at local shops, cafes, bars etc. that will accept Bitcoin as payment. Students who cash out their Bitcoins will have the option to buy back their Bitcoins if they change their mind.

Two dozen MIT Alumni, including high frequency trading mogul Alexander Morcos, have donated the funds to cover the Bitcoin seed money to be distributed to the over 4,000 students participating in the experiment and to set up Bitcoin processing capacities in the local businesses.