Cryptocurrency will never replace government-backed currency

Cryptocurrency+will+never+replace+government-backed+currency

Ruben Galvan '22

Cryptocurrency is a decentralized digital currency, which in layman’s terms means that it’s a form of currency not controlled by a group and is created digitally and not in a physical form. 

In the past six years cryptocurrencies have blown up in popularity, and in the process also shot up in price. With one of the most popular and most expensive cryptocurrencies being bitcoin, which reached an all-time high of $68,990 back in November of 2021, it is sufficient to say that interest in cryptocurrency has spread into the mainstream. With some of that interest being shown within the population of Pritzker. 

In a survey conducted by The Jag-Roar, of the roughly 150 Pritzker students who completed the survey, 37.8% of the sample population showed an interest in Cryptocurrency. Although, 68% of the students who participated in the survey when asked to rate their knowledge of cryptocurrency on a scale of one to five, rated below a three.

With the number of people surveyed who showed a low knowledge of cryptocurrency, I feel it best to show the downsides and flaws of cryptocurrency before people go out and invest their money into something that has other ramifications that are not just monetary but also morally.

One of the largest issues facing actually using crypto is the environmental impact that is caused by both minting new coins, and transferring coins to new wallets.

The entire cryptocurrency industry actually creates as much pollution as a small country. The reason for this is that in order to mint a new coin, it takes loads of processing power from computers and in the process consumes as much energy as some countries. 

The overall negative impact that crypto has on the environment, should send the message that maybe this isn’t the most efficient way to actually exchange goods. If it takes up this much work and energy to actually use.

While crypto being bad for the environment is a huge factor that you should think about before investing in crypto, there are also think about the security issues that come with crypto

With crypto being almost entirely anonymous to use and being decentralized, it makes it incredibly easy to steal and get away with, with some of the most high-level thefts coming at almost half a billion dollars. 

One of the most common ways to invest in cryptocurrencies is to use these third party services that allow you to purchase crypto, but it is also one of the most vulnerable to theft from crypto hackers. Billions of dollars have been stolen in cryptocurrency.

One of the many arguments in favor of crypto is that cryptocurrency is decentralized, meaning that no one group can control the value of the currency. Although what we have seen in the past is that crypto does in fact have certain people who can cause the price to fluctuate. One of the major perpetrators of this has been billionaire Elon Musk. Who in the past has made tweets that have made the costs of certain cryptocurrencies fluctuate in value, and become overvalued. There are also examples of social media influencers on many platforms creating cryptocurrencies as a way to scam their followers and pull out of the currency once it reaches a certain peak. 

Will cryptocurrency replace government backed currency?

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