Question

1. if you wanted more edubucks, what could you do, and how might it change things if other students were willing to trade theirs?
2. what would happen to the value of edubucks if your teacher suddenly made 1,000 more of them?
3. u.s. dollars are an example of fiat money, which means they aren’t backed by gold or silver but by trust in the government. edubucks have value in your classroom because of the rules you all agree on. where does bitcoin get its value?

Explanation:

Question 1

To get more Edubucks, one could offer goods or services (like helping with homework, sharing notes) that other students value in exchange for their Edubucks. If more students trade, Edubucks' liquidity increases, and its perceived value might rise as it's more widely accepted; but if supply outpaces demand from over - trading without new value creation, its value could drop.

If the teacher makes 1,000 more Edubucks, the supply of Edubucks increases. Assuming demand for Edubucks (for classroom rewards, trades) stays the same or doesn't increase proportionally, the value of each Edubuck would likely decrease (similar to inflation in an economy where money supply outpaces demand). Students might be less willing to trade valuable items for Edubucks as they are now more common.

Edubucks have value in the classroom because of the class - agreed rules (e.g., can be used for rewards, privileges). Bitcoin gets its value from a combination of factors: decentralized blockchain technology that ensures security and immutability, market demand (people want it for investment, as a medium of exchange in some contexts), and the trust in its underlying technology rather than a central authority (unlike fiat money which relies on government trust).

Answer:

To get more Edubucks, offer valuable services (e.g., tutoring, note - sharing) to trade with willing students. If more trade, Edubucks' liquidity and perceived value may rise (if demand > supply from new value) or fall (if supply > demand without new value).

Question 2