RISE OF CRYPTOCURRENCY: BLESSING OR DISASTER- SHAFADUL ISLAM

This word ‘cryptocurrency’ has been bugging us since the last three to four years. Whenever we
are trying to buy computer hardware, we are experiencing major price hikes only because of the
rise of cryptocurrency, people investing in it and people mining cryptocurrencies using this
hardware. In easy language, cryptocurrency is a virtual currency which is secured by
cryptography making it impossible to counterfeit and it secures online transactions.
Cryptocurrencies use blockchain technology. Blockchain lets cryptocurrencies to function
without the need for a central authority by distributing their activities over a network of
computers. This lowers the risks of online transaction and also removes transaction and
processing fees. Most famous cryptocurrencies are Bitcoin, Ethereum, Ripple XRP, Litecoin,
NEO, IOTA etc. Bitcoin is considered as the and its launch in 2009 is what started the whole
cryptocurrency movement. Since its inception, cryptos could not be tracked and users were also
kept anonymous, but to reduce trading of illicit items and merchandise, cryptos are tracked now
by some private firms and governments.
Bitcoin has seen major price rise over the past decade. In 2010, it worth $0.08 per bitcoin and it
was $1,150 per bitcoin in 2013. After only four years, it worth $13,000 per bitcoin. Its price
fluctuates a lot, and some might compare it with gambling while investing in bitcoin. In May
2021, it hit $60,000 per bitcoin and now it has worth of nearly $40,000 per bitcoin. Because of
its rise in price, it attracts people more and it became more popularized when people started to
invest in it more and in hope of easy money.
There are actually two ways of investing in cryptos, either by trading or by mining.
Cryptocurrencies were never intended to be used as investments. They are exchange mediums.
They're commonly regarded as a viable alternative to national currencies such as the dollar, yen,
and euro. They're expected to become a more efficient mode of trade in the future, particularly
over the internet. This is due to the fact that, unlike sovereign currencies, its value is determined
solely by the market. As of trading, one buys cryptos and holds on to it until they feel they are
making profit out of it.
Crypto mining or Bitcoin mining is directly related to cryptocurrency. Bitcoin mining is carried
out by high-powered computers that solve challenging computational math problems that are too
difficult to complete by hand and complex enough to drain even the most powerful computers.
The technique of producing new bitcoins by solving a mathematical challenge is known as
bitcoin mining. Over the last several years, miners have grown highly clever, employing
sophisticated equipment to speed up mining operations. And people are being highly attracted to
and investing on it crazily. So, they are buying hardware in bulk resulting in rise of the prices of
hardware globally. Even hardware is being sold on doubled price than its worth and its directly
effecting the IT world.
Identity and credit card theft has been a long-addressed problem in the virtual world and thanks
to cryptos for solving this problem. Information cannot be used to steal one's identity; rather, it
may be used as evidence of purchase, making the transaction more transparent, which is one of
bitcoin's advantages. But side by side, there remains its curse. A benefit of bitcoin is its
anonymity and simplicity of use, yet this bright side has come with a bad side. Bitcoins are
increasingly being linked to a variety of criminal activities, including money laundering,
purchase of illicit items and merchandise and etc. The way bitcoin operates has grabbed the
interest of several other shady people. This digital money is being used by criminal masterminds
to carry out their crimes without leaving any traces. The currency has now become the best
buddy of criminals.
Cryptocurrencies do have major setbacks due to its anonymity and ease of usage, but it is also
freeing people from the governments or private firms’ tracking and keeping the online market
more outer world’s influence free. Cryptocurrency, in fact, has blessing and curse coexisting
together side by side.