Problem
Consider the trade in Bitcoins. Name a Bitcoin trading platform and give a link to the website. Then detail:
1. What transaction costs you think are involved in exchanging 1000 Euros into US dollars,
2. How many bitcoins one would then get if one uses those US dollars to buy a certain number of bitcoins on the mentioned platform,
3. The number of US dollars one then gets when immediately selling the bitcoins just bought, and
4. The number of Euros one can then get for those US dollars. Sol want you to find out (on the basis of looking up the costs or asking market participants) what would happen in each of the four steps above (buy USD with Euros, buy bitcoin with US dollars, sell bitcoin for US dollars, sell dollars for Euros). You should thus end with the number of Euros you would have left if you did the four steps above. Give references.
Do you think commodity-backed money will displace fiat money in international trade? Give reasoned arguments for why.