Cryptocurrency

“It’s money 2.0, a huge, huge, huge deal.” In this quote, Chamath Palihapitiya, a venture capitalist, is referring to cryptocurrency, digital money based on decentralized blockchain technology. Since its advent, there has been heated debate about whether cryptocurrency should be banned. I believe cryptocurrency should not be banned because cryptocurrency can enable people living in an unstable economy to save and spend money, and because cryptocurrency represents a more accessible form of investment.            

To start with, cryptocurrency can help people living in an unstable economy to save and spend money. For example, Ukraine is one of the countries that use a lot of cryptocurrencies. Since the start of the war with Russia, the Ukrainian government has encouraged the usage of cryptocurrency to help maintain the economy – including transactions among thousands of people – at a time when banks were unable to carry out their duties to the fullest extent. Another example is Venezuela, where an unstable economy led to the value of its currency dropping significantly. . This led the citizens of Venezuela to transfer to cryptocurrency with a more stable value than the currency of Venezuela Bolívar. Therefore, we should not ban cryptocurrency because people living in poor economies should have the opportunity to buy, save, and invest by using cryptocurrency.           

Another reason why cryptocurrency should not be banned is that it offers a more accessible form of investment. The entry barrier to investing in real estate, for example, is relatively high compared to cryptocurrency. You have to have a certain amount of money even to begin investing. Cryptocurrency, however, is more accessible in the sense that the minimum amount of money required to invest is much lower. There is no need for you to have thousands of dollars in your bank account. In addition, credit or identification checks can be bypassed. Anyone with an internet connection can easily create an account and invest in any cryptocurrency. Therefore, we should not ban cryptocurrency because its trading is a more approachable form of investment.            

In conclusion, I believe cryptocurrency should not be banned. Cryptocurrency can help people living in an insecure economy to use a more reliable, alternative form of money. Also, it offers a more accessible form of investment to a wide variety of people. A government banning cryptocurrencies would be blocking viable forms of economic activity.