Chapter 37 — Exercises

A1. Apply the three-functions-of-money test to Bitcoin, USDC, and the digital yuan. Which is closest to being money? A2. Why did TerraUSD (algorithmic stablecoin) collapse? What was the design flaw? A3. "CBDCs will replace all private banking." Evaluate. What are the risks? A4. The U.S. free banking era was chaotic. Does crypto resemble it? A5. "Bitcoin is digital gold." Is this a useful framing? A6. Look up Bitcoin's price history since 2009. Identify the major bubbles and crashes. A7. FTX collapsed in November 2022 after fraud was discovered. Apply the information-asymmetry framework (Chapter 16). A8. Should governments ban crypto, regulate it, or leave it alone?

Selected answers in appendices/answers-to-selected.md.