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Creeping Into The World of Cryptocurrencies
Creeping Into The World of Cryptocurrencies
In the ever-progressive and evolving world that we live in these days, technology continues
to flourish and prosper—bringing about positive impacts to and changes in everyday tasks. Thus,
making these tasks easier, more convenient, and human-friendly. Basic human necessities such as
money, for example, are given far more importance than they should get. Money, after all, is created
by the people and for the people. This currency, having inherent value in it, is capable of producing
The evolution of money from paper money to the now-credit and debit cards has
significantly put ease in the daily transactions of people. It has made buying products and shopping
so much easier through the Internet. But with the rise of these advancements in currency came also
the rise of various financial crises in the United States and in Europe. People began to distrust the
government for their handling of money and assets. If the government can do so well in the
financial scene, then why does it have such huge amounts of debt? This led to the creation of what
people deem now as a digitized and safer method of assuring that transactions take place, remittances
and assets are issued properly, and that money circulates in the vast majority of the globe—the
In 2009, Satoshi Nakamoto created Bitcoin with the hope of circumventing government
interaction. (Douma 2) The invention of a virtual currency sparked controversies but at the same
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time gained recognition and attention from the public. It meant
that people would no longer have to bring with them paper bills
efficient, Bitcoin is set to play a major role in the fields of finance and economics. For one, it has
become a go-to digital asset capable of bringing us to the forefront of financial progression.
(Business Impact)
Bitcoin, like any other cryptocurrency, is a virtual currency that is issued and controlled by its
developers, and used and accepted among the members of a specific virtual community. This goes
to say that it operates in moderation. Only the developer has the right to make changes to the
system and it is independent of any banking industry. This said, the security measures follow
cryptography. Information is kept and held confidential with the use of mathematical equations and
algorithms. (Douma 11) After all, online currency is thought to be better than real cash. Through
Bitcoin, people get to minimize the risk of having debts and economic recessions by offering
diversification. One specific advantage of this cryptocurrency also is the permission to send and
remit amounts of money overseas, across the globe, in real-time. (Turayhi) This allows it to be
Alongside the benefits people get from cryptocurrencies are numerous disadvantages which
they also find problematic in these innovations. Being an online currency entails that it is prone and
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vulnerable to hacking and other criminal activities. (Douma 20) This encouragement is brought
about by the illegality of having to hide people’s money from the government. With the hackers’
underground access to the cryptocurrency system, it is also easier for these hackers to gain
information about the users and tenants who are a part of the virtual community. This would lead to
leakage of unprotected data, identity theft, and the like. Another disadvantage is Bitcoin’s tendency
to be unreliable and inconsistent. There is no fixed market value for each bitcoin and there are no
limits. (Elite Currensea) The numerous disadvantages of Bitcoin only make it less stable and new in
the worldwide scheme. It has yet to establish a stronger foundation to finally get on the levels of
https://www.express.co.uk/finance/city/914087/cryptocurrency-predictions-2018-bitcoin-news-blockchain-ethereum-ripple
In a wider scope of cryptocurrencies, Bitcoin is not alone. After its emergence, a lot of other
cryptocurrencies came to rise—the five biggest ones after Bitcoin being Ethereum, Dash, Monero,
Ripple, and Litecoin. This shows that developers see the contributory aspect of having to create
more cryptocurrencies, and its direct effect to the public and the users. People are getting more and
more involved and invested in using these virtual currencies. (Hileman and Rauchs 17) So how do
these cryptocurrencies actually operate? What makes it trend and why do people consider making
these online currencies, and even better, why do people use them?
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The thing about cryptocurrencies in general is that they operate in a vacuum; no connections
to other systems are needed. (Chiu and Koeppl 11) For a user to participate, one must avail of
bitcoins by mining them. That is, having to perform a computational task by downloading first a
digital wallet and creating an account. (Douma 13) This allows the users to protect their data and
information, and availing of bitcoins in the long run. These bitcoins are then the currencies which
the users will be using in buying or selling products, goods, services, assets, and the like. Its major
downfall is the idea of double spending. The virtual world makes it easy for hackers to easily
manipulate, control, and copy information online. Now, if we push for a cashless society and
economy, wouldn’t it mean more distrust and more double spending? Wouldn’t it also mean more
risks?
The world of cryptocurrencies promises a world of independence and no control from the
government. Its concept of decentralization goes against the existing power of politics in centralizing
and taking charge of the world’s money. Perhaps, we have yet to explore up to a certain extent the
capabilities of these cryptocurrencies, and see how far these are able to outweigh the benefits we get
SOURCES:
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“Advantages and Disadvantages of Trading Bitcoin and Cryptocurrencies.” Editorial. Elite Currensea.
Beyond.” Chapman. Victoria Universiy of Wellington and Queen’s Univeristy, April 2017.
centers/economic-science-institute/_files/ifree-papers-and-photos/koeppel-april2017.pdf.
Douma, Samantha. “Bitcoin: The Pros and Cons of Regulation.” OpenAccess. Universiteit Leiden, 12
https://openaccess.leidenuniv.nl/bitstream/handle/1887/42104/Bitcoin%2C%20The%20P
Hileman, Garrick, and Michel Rauchs. “Global Cryptocurrency Benchmarking Study.” Cambridge
Centre for Alternative Finance. University of Cambridge, 2017. Web. Retrieved from
https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alternative-
2018.
“The Cryptocurrency Market is Growing Exponentially.” Editorial. MIT Technology Review. Business
https://www.technologyreview.com/s/607947/the-cryptocurrency-market-is-growing-
Turayhi, Yasmeen. “An Introduction to Bitcoin: What It Is, Why It Exists, and Where To Buy It.”