Name: Gabriel Vodenov

Date: 2-27-22

Block: 1

How does crypto affect the price of the dollar?

89% of people in the US have heard of crypto although it seems like a good way to make money it is not

that easy without risks. Crypto is part of the future and affects more than just the dollar. Crypto affects more

than just the prices of other currencies.

Crypto affects the prices of a lot of things. Like crypto affecting how much money some businesses

make. In the article written by Yaffe-Bellany he says how crypto has far reaching impacts, stating “a few years

earlier, a cryptocurrency exchange affiliated with Tether had lost $850 million in a business deal gone sour.

To cover the losses, the exchange, Bitfinex, took loans from Tether’s reserves, leaving the stablecoin partly

unbacked”. This shows crypto caused losses in money and due that’s prices of crypto have changed this

impacts physical currencies because its a loss of dollars. Also crypto costs different amounts when.

Sometimes “buying bitcoin is not the same as exchanging dollars for euros” (Alexander). Dollars and euros

have different values so if you exchange crypto to one or the other it changes the price/amount of that

currency that you will get. This means that it has different values in other currencies so if you were to

exchange it, it could cost more or less. Other sources show how crypto could cause damage to banks because

“bitcoin has been called one of the most disruptive technologies of our times, threatening banks by building

an alternative and decentralized currency system” (IMDb). Crypto overall has been a disruptive technology

threatening banks that store money and the amount of money inside them. This makes business and other areas

with lots of money with crypto change a lot. Synthesis: Altogether crypto has caused the price of multiple

things mostly to fall because it is like a secondary currency trying to rise to be above the current primary

currencies. It also shows how crypo disrupts multiple things and affects how people buy crypto. This is
significant because crypto is a massive type of currency that is pushed to the public but causes multiple

problems. Some good things but overall change lives and physical amounts of money.

Crypto causes problems to the environment. Most environmental problems deal with money “but if

crypto, already worth $2 trillion, is the future, this industry — like any other — can’t afford to ignore climate

change and must embrace sustainability. Ether, the second-most popular cryptocurrency, uses a lot of power,

like Bitcoin, but its developers are planning a transition to a mining method that is more friendly to the

environment” (Livni). Crypto change causes climate change by using a lot of unnecessary power. It could use

less but people are greedy. This causes a lot of problems with the environment and really badly damaged it.

Things like power also cost money and energy so “the energy consumption is in the part where you are trying to

complete these blocks for the blockchain. You have about three million machines around the world participating

in a massive game of ‘guess the number,’ generating 140 quintillion guesses every second of the day, nonstop.

Then, they get to create the next part for the blockchain, but that’s the energy consuming part. And not every

cryptocurrency needs that” (Livni). Even though they use so much energy they keep using more because they

want money and it cause bad outcomes to the environment. It shows how crypto ruins the environment and

people still do it for small profits. Not only does it cost a lot but electricity is important. That's bad because

“bitcoin uses more electricity per transaction than any other method known to mankind, and so it’s not a great

climate thing” (Gates). It’s crazy how bitcoin, not even including all the other cryptos, still uses so much

unnecessary electricity. When the earth gets worse we will have to spend a lot of time fixing it and crypto

should make use of that. Synthesis: overall the planet and environment is getting negatively impacted by

cryptos entry usage and will make things worse in the future. In the future it will take billions of dollars, maybe

even trillions, to fix the earth. Crypto will affect the earth badly and will cause multiple problems if its not

fixed.

Crypto could be risky for investors and could be dangerous. Even when there are so many people doing

crypto and people are so sure about profits like “Coinbase, one of the largest cryptocurrency exchanges,
reported a $430 million quarterly loss and said it had lost more than two million active users” (Bellany, Griffith,

Livni). This statement shows how crypto can cause problems for investors. Since coinbase is one of the largest

cryptocurrency exchanges so a lot of investors lost money when they invested in crypto. Even if people invest a

lot they can still lose a lot “despite the current crypto crash, in which bitcoin collapsed from $47,454 in late

March to $19,777 in mid-July, the appetite for innovative crypto and blockchain schemes does not appear to

have been diminished” (Komminoth).Bitcoin one of the largest crypto currencies crashed to over 50% of its

total price which is a massive loss and could have made made problems for investors but they still invest into

crypto. When people invest they think about investing into the popular cryptos but it's not always good because

some of the largest “cryptocurrency prices are plummeting. A so-called stablecoin lost all its value in a matter

of days” (Yaffe-Bellany). A lot of cryptos have been called stable coins because they did not go down by a lot

but some of those stable coins like bitcoin can always crash and they did. Even if a crypto isn't changing a lot it

can always crash just like bitcoins and some other stable coins. Synthesis: cryptos can always crash and they

have so it insists always be safe even if people say there are some stable coins they can always crash. This is

significant because there is a loss in money from crypto that people thought it wouldn't crash but it did and

that's why it is too dangerous and risky to investors.

Crypto currencies can affect money’s and although crypto doesn't cost the same for every currency it can

still change them. Crypto uses a lot of power that can be controlled but is not and it causes bad things for the

environment like climate change. Crypto isn't the safest thing to invest in because it could always crash and a

lot of people have lost lots of money. Crypto causes effects on the environment and people. Overall crypto is

risky and causes damage but it can also help you win big.

Works Cited
Cryptopia: Bitcoin, Blockchains and the Future of the Internet. Directed by Torsten Hoffmann, produced by

IMDb, 7 May 2020. https://www.imdb.com/title/tt9203586/

David Yaffe-Bellany “Tether: The Coin That Could Wreck Crypto.” The New York Times, 17 June 2022,

www.nytimes.com/2022/06/17/technology/tether-stablecoin-cryptocurrency.html.

George, Alexander. "DID YOU MISS THE CRYPTO CURRENCY BOAT?" Popular Mechanics, vol. 195, no. 3,

Apr. 2018, pp. 16+. Gale In Context: High School,

link.gale.com/apps/doc/A532250693/GPS?u=dist214&sid=bookmark-GPS&xid=de9c923e. Accessed 10 Feb.

2023.

Komminoth, Leo. "Engie launches crypto initiative to crowdfund solar projects: Despite the current crypto

crash, Engie is counting on cryptocurrency as an alternative way of financing its ambition to be a leading

decentralised energy company in Africa, reports Leo Komminoth." African Business, no. 496, Aug.-Sept.

2022, pp. 50+. Gale In Context: High School,

link.gale.com/apps/doc/A715388082/GPS?u=dist214&sid=bookmark-GPS&xid=3a437f51. Accessed 16 Feb.

2023.

Livni, E. (2021, October 11). Can Crypto Go Green? The New York Times.

https://www.nytimes.com/2021/10/10/business/dealbook/crypto-climate.html

Sorkin, A. R. (2021, March 9). Bitcoin’s Climate Change Impact Is Under Scrutiny. The New York Times.

https://www.nytimes.com/2021/03/09/business/dealbook/bitcoin-climate-change.html

Yaffe-Bellany, David, et al. “Cryptocurrencies Melt Down in a ‘Perfect Storm’ of Fear and Panic.” The New
York Times, 13 May 2022, www.nytimes.com/2022/05/12/technology/cryptocurrencies-crash-bitcoin.html.

Yaffe-Bellany, D., Griffith, E., & Livni, E. (2022, May 12). Cryptocurrencies Melt Down in a ‘Perfect Storm’ of

Fear and Panic. The New York Times.

https://www.nytimes.com/2022/05/12/technology/cryptocurrencies-crash-bitcoin.html