Answer :
The main challenge for Bitcoin in mounting the definition of money is that (D) its value is tightly volatile. Unlike traditional currencies, such as the US dollar or the euro, which tend to have relatively stable values, Bitcoin's value can fluctuate significantly within short periods of time.
For example, in December 2017, the price of one Bitcoin reached nearly $20,000, but just a year later, it had dropped to around $3,000. Such volatility can make it challenging for Bitcoin to function as a reliable medium of exchange or store of value.
This volatility can make it difficult for businesses and individuals to accept or use Bitcoin for everyday transactions. Merchants who accept Bitcoin as payment may struggle to determine the appropriate price for their goods or services, as the value of Bitcoin can change rapidly. Similarly, individuals who hold Bitcoin may be hesitant to spend it, fearing that its value could significantly increase or decrease shortly after the transaction.
Furthermore, this volatility can also deter governments and regulatory bodies from fully embracing Bitcoin as a recognized form of money. They may be concerned about the potential impact of Bitcoin's price volatility on their economy and financial stability. Additionally, it can complicate the implementation of monetary policies, as the value of Bitcoin is not easily controlled or influenced by central banks.
In conclusion, the main challenge for Bitcoin in mounting the definition of money is its tight volatility, which makes it less stable and reliable compared to traditional currencies. This volatility can hinder its widespread adoption and acceptance as a medium of exchange and store of value.
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