In this article, we examine the following counter-arguments to see if they are valid:
Is mining a long-term solution?
Is crypto used for crime?
Can governments ban crypto anytime they want?
To kill someone, you have to first think about that, and having those thoughts of killing someone aren’t easy. It should be followed by strong, valid reasons for hatred. You can not simply kill anyone. To judge anyone on this segment, you must go through the whole story. So the same goes with the crypto space also. If you think that the above three aspects can kill crypto space, you must go through the whole part of the story too.
Blockchain and crypto worlds are based on a basic concept: social benefit through enhanced transparency and decentralization mixed with ever-evolving technology. We do agree with the fact that it’s a complicated industry that’s rapidly expanding and occasionally contradicts what it professes to stand for.
Let’s understand the most talked-about topics in the crypto world. To see what’s actually going on in this evolving space.
1 - Cryptocurrency mining is not a long-term solution.
At the time of writing, both Bitcoin and Ethereum, the two most popular and biggest cryptocurrencies, employ proof of work to authenticate their blockchains. This consumes a lot of energy.
Ethereum will switch to a proof-of-stake approach later this month (September), reducing its energy consumption by 99.95%. (as per the predictions on ethereum.org).
Bitcoin, on the other hand, does not appear to be moving away from proof of work. This is where miners compete to guess a lengthy number, with the quickest one being able to validate and create the next block, receiving Bitcoin rewards.
The objective of this is to safeguard the network by creating a high barrier to entry for malicious assaults, rather than to really verify that you’ve done some job. Bitcoin has been compared to Switzerland and other countries in terms of energy use.
Is it, however, that simple? Perhaps not, for the following reasons:
- Reason 1:The first reason is that there is a lot of wasted energy. Bitcoin makes use of energy that would otherwise be wasted since power cannot travel vast distances. Hence mining sites have been established in locations with significant waste.
- Reason 2: The Most Economical Energy. Bitcoin miners will gravitate toward renewable energy since it is the cheapest. This will continue to increase the use of renewable energy sources.
- Reason 3: Driving Force is the third reason. Usually, bitcoin has been a driving force behind the energy discussion. It also spurred renewable energy innovation, production, and consumption.
Bitcoin’s sustainable energy mix was expected to be 58.5 percent in Q4 2021, making it one of the most sustainable industries on the planet.
The most pressing issue now is usefulness, not sustainability. As the network expands and more people use it, the amount of energy used per transaction will decrease drastically. It will be one of the most sustainable networks ever established at that point, but it will also be one of the most efficient. The attention might then shift to conventional banking and finance to see how they are adapting.
2 - Crypto is employed in criminal activity
Crypto is utilized for nefarious purposes! It was the dominant story, promoted mostly by politicians. Of course, there is always a small percentage of people who are skilled at seeing potentially exploitable spots in every system. The truth, however, was completely different. In 2021, the percentage of illegal transactions was at an all-time low, accounting for about 0.15 percent of total transactions (worth roughly $14 billion).
Cryptocrime’s share of transaction volume Money laundering and illegal activities are projected to account for between 2% and 5% of global GDP ($1.6 to $4 trillion) yearly, according to the United Nations.
In comparison to bitcoin, our present banking system has between 13 and 33 times the level of criminal activity.
The advantage of a blockchain is that all transactions are visible to the public. You have no idea who is behind the transaction, but individuals are getting extremely proficient at deciphering the trail of coins and where they came from using a mix of technologies. All of this means that it’s not a decent method to go about committing a crime.
3 - Governments will prohibit the use of cryptocurrency.
During an amazing conversation with Jimmy Song over whether Bitcoin might replace the dollar as the world’s reserve asset, one of Wall Street’s best thinkers, David Woo, declared, “Governments may prohibit crypto whenever they want!”
Bitcoin, on the other hand, has been outlawed several times. Almost all of the major financial institutions have attempted to bankrupt it. It has experienced an enormous crypto mining migration.
It’s still around. More powerful than ever before. While it is true that governments may pass legislation to prohibit crypto, enforcing such legislation would be extremely difficult. Are you going to take people’s phones away from them or switch off the internet?
Countries have begun to regulate it and started accepting crypto payments, and it has been approved as legal tender in certain situations.
The globe is full of opportunity and talent, and those who believe in crypto will travel to regions where it is supported in greater numbers than ever before. In the same way that Silicon Valley was in the early days of the personal computer, today’s means that it’s not a decent way to go about committing a crime…if that’s your thing.
The number of builders and creatives in the crypto market is rapidly increasing. This is drawing elite people from industries such as large tech, finance, and other fields. When you add money to the fire, it burns brighter, and the things crypto will do, and the issues it will address, in the future haven’t even been imagined.
Countries that have prohibited it or have not accepted it are under a lot of pressure because they will be left behind.
Crypto’s social, technical, and economic revolution will alter the world, and those who embrace it will benefit. It will give greater equality of opportunity than the current institutions.