The Future Of Cryptocurrency Free Essay Sample

Cryptocurrency is a digital form of money. Bitcoin is a type of cryptocurrency that uses blockchain and unique codes to transfer money. This topic raises great debate because it is not widely accepted by everyone. Some believe that virtual currency will be as common as conventional currencies; but on the other hand, others seem to believe that virtual currency will not be as common as conventional currencies. Although, some may argue that conventional currencies will stay more common because cryptocurrency is not regulated enough; the reality is that it will be as common as conventional currencies because it is used by many people, easily accessible, and anonymous. Therefore, cryptocurrency will be as common as conventional currencies. 

One of the reasons why cryptocurrency will be as common as conventional currencies is that it is being used by many people. This proves to be true because there are many merchants accepting forms of cryptocurrency. According to the article “China Is Creating Digital Currency, First for a Major Economy'' by James Areddy, '' ``In tests, more than 100,000 people have downloaded a mobile-phone app enabling them to spend small government handouts of digital cash”” (Areddy 12). This demonstrates that people are willing to try how cryptocurrencies work before it becomes as common as conventional currencies. People willing to test virtual currencies shows that people are also willing to adapt before getting an idea of the future since it is inevitable. Additionally, people trying virtual currencies can lead to people spreading it by sharing their experience which can cause more people to try it, leading it to become more common. Also, according to the article: India Plans to Tax Cryptocurrency, Create 'Digital Rupee' by Shih et al.,”In 2021, India's largest cryptocurrency trading platform, Mumbai-based WazirX, hit 10 million users trading $43 billion worth of cryptocurrency” (Shih 5). This quote emphasizes that countries have started using virtual currencies and have already developed a stable system to continue using virtual currencies. One cryptocurrency platform can help other countries develop their own system, hence, making virtual currencies gain popularity by sharing ideas. Thus, virtual currencies are getting more popular as time goes on which will make it become as common. 

  Another reason why cryptocurrencies will be as common as conventional currencies is because it is accessible to everyone. This is true because some places did not have access to traditional banks. Kalmadi et al. explains that virtual currencies are also good for those that do not have access to safe and convenient traditional banking services such as Latin America and Africa and that it is a good alternative for those without stable banking systems. This example highlights that virtual currencies are more accessible to everyone and could replace traditional banks since virtual currencies are more convenient to people. Since it is accessible to everyone, more exchanges can happen between people since they do not need an intermediate which makes it faster and easier. In addition, the article, by James Areddy, states that digital currencies such as China’s digital yuan can be used from one's phone or a card and that the digital yuan does not need to have an online connection. This illustrates that digital currencies can be used by many people because they can be used in several forms and are easy to use. Without an intermediate, virtual currencies can be used with a phone or card since one can transfer money without needing someone else to allow it to happen. Hence, cryptocurrencies allow people to have another form of banking that is faster. 

Proponents argue that cryptocurrency will be as common as conventional currencies because it is anonymous. Cryptocurrencies such as bitcoin use unique codes to transfer money. The author of Virtual Currencies -- Gold 2.0 or Mirage explains that virtual currencies do not require any personal information such as an email address or phone number (Sun 10). As a result, virtual currencies are anonymous unlike traditional banking systems that require identification which could cause a higher risk of identity theft. The author of the article This Regulator Wants to Help Banks Embrace Cryptocurrency states that,”The OCC also is looking to address whether banks can look to underlying blockchains as payment networks” (Sun 21). This quote shows that blockchain technology is a form of technology that is anonymous which keeps users safe from getting hacked or by getting their identity stolen. It is evident that cryptocurrencies are safe because crypto does not require personal information. 

Despite this evidence, one may suggest that conventional currencies will stay more common because cryptocurrencies are not regulated enough; however, this is not valid because cryptocurrencies are more safe than conventional currencies. Virtual Currencies -- Gold 2.0 or Mirage by Kalmadi et al. explains that virtual currencies are unregulated and are not supervised, without regulation users have no recourse of any fraud transaction. While regulation is a sound idea that should be encouraged, it is not feasible yet because not everyone knows how it works; thus cryptocurrency should start being used more because large organizations and banks have started using cryptocurrencies. Brooks from the Comptroller of the Currency states,”the percentage of fraud or criminal activity, such as money laundering and human trafficking, involving cryptocurrency remains low, compared with those that go through the traditional banking system” (Sun 17). This emphasizes that cryptocurrencies are not regulated enough, it is still safer from theft compared to conventional banking systems. Overall, despite the fact that some believe cryptocurrency will not be as common as conventional currencies because it is not regulated enough, the fact of the matter is that cryptocurrencies will be as common as conventional currencies because it can be accessed by anyone, anonymous, and many people have already started using it as a form of payment. Ultimately, it must be recognized that it is popular already because people are willing to try cryptocurrencies before it gains more popularity. Furthermore, crypto currencies are also accessible to everyone because some people do not have access to a safe and convenient traditional banking system. While opponents continue to insist that conventional currencies will continue to be more common than cryptocurrencies, it is not valid because there is a lower criminal activity rate and cryptocurrencies use blockchain which makes cryptocurrencies safe without a lot of regulation. Therefore, it is irrefutable that cryptocurrencies will be as common as conventional currencies in the future.