Cryptocurrency, My personal stand.

Friday,
  August 19, 2022

Good morning everyone,

Before I start, Today is World Humanitarian Day, and a quote appeared- "If you can't feed a hundred people, then feed just one."

"One of the users here @TeacherLynlyn very actively participates in line with this quote that I have witnessed from her posts over and over again. She is a very humble and kind person."

Let's move on to the topic-

DISCLAIMER: You can think of me as a hypocritical person, but I don't care what you think about me. You are free of your own will and create your image of me while wasting your precious time imagining me.

A lot of people or you can say 99 percent of the people here, like cryptocurrency and hitherto promote it, and some of them only like it because they are being rewarded in terms of cryptocurrency. A lot of people recently took a hiatus or complete attrition from the platform because of being not properly rewarded and cites of their busy routine. It's the truth.

I too started liking the platform only because of its reward, but in the early months, I liked it to pursue writing as one of my hobbies. But, cryptocurrency has its ugly sides.

• It is created and issued by some software protocols and not issued by any central banks that form the first basis of it not being any legal tender.

• It is against the economic sovereignty of the country as it leads to the dollarisation of the economy.

• The announcement by El-Salvador to make it the legal tender in the country plunged its economy into a developing economic crisis. Because of the bear trend being reflected across the crypto ecosystem.

• It can allow some random players (especially the big players in the crypto ecosystem) the leverage of economic control of a certain country.

• Some people are easily able to control the whole market of certain cryptos as we have recently seen.

Recently, we have seen the penetration of cryptos into various economies and also to some extent, the various socio-economic classes. But, still, a large number of people do not trust it as a medium of exchange because of certain reasons, the identity is one among them.

In any economy, inflation, interest rates, exchange rates, etc. are controlled by the central bank of that country but, if we talk about the use of crypto as a legal tender then the factors regulating inflation and deflation cannot be controlled by the central bank. There would be no such instant reflection of the prices of the commodities and the essentials as they are controlled in a normal economy and this would disastrously lead to the failure of the state, plunging the economy into an economic crisis.

There is so much anonymity in this ecosystem that it can easily be exploited in terror financing, money laundering, and other nefarious activities like drugs, crimes, and so on. No doubt it is already being used in such activities.

Employment: In any economy, banking plays a vital role in the financial setting of the country but cryptocurrency would lead people into investing more in these virtual currencies and would be led to less availability of the resources at the hand of the bank. That means there would be less work available to the banks and to reflect the profit accordingly, the banking institutions and various other financial institutions would start shutting their operations in various places (the remote areas being the first followed by some small cities and so on), its impact would be multiplied by the factor of unawareness by the people residing in those areas and would have to suffer exponentially to avail the banking systems to them.

The banks in India employ 795k people in India and this means a lot of people (subsequently almost half of the people) would be left unemployed in the country adding to the burden of labour force participation rate of the country.

When the people of the country invest their hard-earned money into some cryptos and due to its uncertain volatility may bring a sense of dissatisfaction among the people, the stress, depression, and anxieties cases would go up. And all this would happen because of their inability to afford the general items, unable to support the education of their child, or unable to pay their utilities, hospital, and various other such bills.

Cryptocurrencies are usually promoted because of the leading figures investing in them do not realise that they are already the elites of the society, it might not affect them much but it would affect the general population of the country. And, the psychological factor of adding credibility to these cryptos adds but, in reality, it's the otherwise.

Now, some people would forward their little pathetic arguments like 'NOOO, THERE ARE SOME CRYPTOS THAT WORKS ENVIRONMENT FRIENDLY, OR ARE EASILY TRANSACTED' but, do you even realise the weights of the advantages and the disadvantages of using and promoting the cryptos. Some people who were rich in earlier times thought of sparing some of their extra money into some new crypto projects and at some time when they were a little hyped they benefitted a lot, some became millionaires and a few also become billionaires.

It all has created and is continuously creating a rift and inequality of the wealth between the affluents and the general population.

So these are some of the factors that do not allow me to like crypto. And, do not worry there are other deep economic factors involved in it too which I am not mentioning.

Thank you

Have a thoughtful day.

And, before someone tries to argue with me, I insist you do proper research about your country, your countrymen, and the status of other countries and their countrymen. Only after, I would be pleased to have a debate with some strong critiques of me or my thoughts.

Thank you everyone for supporting me and my subscribers, and my readers.

republished on my website: fairaffairs.wordpress.com