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 0 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.
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