Subjected to the fiscal framework of economic growth, with the ability to circumvent modern-day financial movements, the only thing better than cash is opaque: digital currency. This mindset of digitalization and “optimization” has shifted our culture and perspective away from our conventional form of exchange, ultimately into a more digitized sphere.
With headlines jumping from growth to decay, many speculators have advocated for consistency in an effort to slow down unpredictability.
So, this begs the question; should we regulate this field?
Crypto as a scam, not an investment
Although growth (compared to its beginnings) is exponential, cryptocurrencies are by no means a get-rich-quick plan; but rather a scheme.
Hidden behind the artificial mask of NFTs and overnight millionaires lies the fallacy of stimulation: this crypto market is artificially driven by tweets from individuals like Elon Musk. Singular tweets with little or no substance create and erase hundreds of billions of crypto dollars rather than legitimate-pegged currencies.
Because Crypto is not backed by anything besides the whims of sentiment, a drop in digital currencies is nothing more than the lowering of numbers on a screen; the rise in influencers using their social media platform to flaunt these digitized brand deals stands to exacerbate the issue. Indeed, with partnerships like the NBA hiking usage exponentially, it’s grotesquely apparent that this digitized game of capitalism is commercialized off the common individual.
Ordinary netizens buy into these brand deals and pump and dump schemes, with hundreds of millions dumping their savings, college funds, and even retirement plans into Crypto: in this case, volatility is not a good thing; but is regulation?
Is crypto destined to be regulated?
Crypto was created to be different from the forms of trade we have now. Mediums like Blockchain were developed as decentralized platforms, allowing users to connect financially absent government intervention. Regulations will permanently stain this image of governmental resilience, blundering away the incentives that many individuals who entered the sphere first retain. For these reasons, digital regulations might seem as though it’s in a gridlock.
Despite the ambivalence many hold to cryptocurrency, what does stand clear is the way it grows. Siphoned off the attention of millions, endorsed by the sponsors of thousands, Crypto -Bitcoin, Dogecoin, even Stablecoin- all have a common trait: clout. This clout plays upon the heartstrings of millions, even governments, as they choose what to do with their assets, retirement funds, and even treasuries.
Notably, there has been an increase in cryptocurrencies as retirement funds. On the other hand, there has been an increase in remittances that rely on cryptocurrencies, allowing millions across the globe to purchase basic necessities through the -despite volatile- popular payment medium.
Conclusion
Ultimately, despite the harms and benefits, one must default to the impact of Crypto on our culture and the world around us. Although volatile, it’s our decision to invest, and likewise, our decision to educate ourselves first, work with others and determine what is genuinely best (financially) for ourselves.
Written by: Jonathan Wei | Junior @ NSHS, Waban MA
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