Abstrakt
This paper compares hyperinflated mon- ey to bitcoin. It looks over the monetary functions and evaluates how they react and change during the pres- sure of hyperinflation.
It uses the example of Brazilian hyperinflation during the years 1980 - 1994 to show that most important function of money is the unit of account, as it represents trust in the money. The article further evaluates the monetary functions of the Bitcoin system, it argues that the trust in the money comes only partially from the associated government but also from the experience with the money itself.
In conclu- sion bitcoin possesses the characteristics of money, but they are in early development, nevertheless in future it may achieve the monetary standards and help some struggling countries with their own currency.