Cryptocurrencies – bad, good or ugly?. What's Cryptocurrency and How It Changes Our World?
- What's Cryptocurrency and How It Changes Our World?
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- Cryptocurrencies – bad, good or ugly?
Cryptocurrencies – bad, good or ugly?
There is no clear answer to the question of "Are cryptocurrencies bad?" Much depends on the perspective. If we view virtual money only as a way for speculators to make a quick buck, any effort spent on mining it can be seen as a waste of resources and selfish behavior. The truth, however, is much more complicated.
First of all, the very development of blockchain seems almost a godsend in the increasingly digitized reality. We are moving more and more areas of our lives into the virtual world, and blockchain offers a great way to safely store a growing record of transactions, events or other units of data from virtually any area of our lives. Cryptocurrencies are the clearest example of blockchain's use, but it can help organize online voting, keep sensitive records (e.g. land registers, medical records, tax information, registers such as tax identification numbers), or the daily activities of many sectors, such as education (register of student grades), commerce (transactions without intermediaries) or securing luxury goods – you name it.
Cryptocurrencies can also play a political role. A fresh example of this is El Salvador, which has recognized BTC as an official means of payment. Given the volatility of the exchange rate and vulnerability to manipulation, this is an extremely risky decision, and many economists are probably watching the country's economy with great excitement right now. Cryptocurrencies can also be used as a tool to fight the state apparatus. The South China Morning Post describes how the Tether currency (USDT) is being used to move assets out of China in amounts far exceeding the legally permitted $50,000 per year. In Venezuela, on the other hand, citizens have turned to BTC in hopes of protecting assets from hyperinflation.
The image of cryptocurrencies is unfortunately not aided by criminals. The prospect of high earnings makes hackers try to harness the computers of unsuspecting users. In addition, embezzlement and fraud often occur, such as in the case of a member of the e-sports team FaZe Clan. The anonymity inherent in the idea of cryptocurrencies is great news for those looking for a way to launder money, too. The extent of virtual money crime is hard to estimate, but the recent seizure of nearly about $300 million worth of cryptocurrencies by British police gives you an idea of the scale. Furthermore, Jackson Palmer, co-founder of the Dogecoin, stated that all cryptocurrencies are scam.
Also, bear in mind that cryptocurrencies can indeed lead to environmental pollution, power grid instability, or computer component shortage. In the face of ongoing climate crisis, virtual money may appear as an extravaganza that humanity simply cannot afford. Those speaking out against cryptocurrencies, however, are usually not doing so for ecological reasons. Their primary motivation is the desire to maintain the status quo – the control over cash flows in the traditional banking system. The dispute, then, is primarily over who will make billions of dollars by simply controlling the mone system. That's life.
