Bitcoin is a relatively new currency alternative that is emerging on scene, and you can’t even hold it. It is the new hype amongst millenials for it’s practical and universal functions. However, the virtual currency is not perfect, or anywhere close to be more precise. Critics are bashing on the coin for its lack of regulation and it’s unintentional facilitation of terrorist tendencies. Due to it’s recent prevalence on the market, Bitcoin has yet to be determined beneficial or not to our society. So is Bitcoin worth investing in further or should the government take action into regulating it?
Bitcoin has many benefits to our economy and further investment will only increase said benefits and help the economy. One major benefit of bitcoin is its ability to equally divide profits among a select group. As proposed by Nicolas Berggruen of the Berggruen Institute in his newspaper, a hypothetical situation perfectly explains this benefit. He explains how bitcoin can can make profitable goods “fractionally owned” by everyone in the Utopian bitcoin society (Berggruen). By splitting the profit of the commonwealth equally, bitcoin lessen financial disparity and ensures equal economic prosperity for the whole community. Any investment in bitcoin will only increase the shared profit that every member of the community receives which creates a beneficials cascade effect for the society. However, this beneficial commonwealth has downsides. Bitcoin uses blockchain that is not fully regulated and can result in transaction failures that hit “centralized clearinghouses”, as said by Jeffrey D Sachs of the Boston Globe (Sachs). Although bitcoin has faulty mechanism, that does not deny the fact that it’s proves beneficial when it doesn’t fail, which is most of the time anyways. Investing in bitcoin will only improve the way it’s operates and possible increase it’s success rate which will increase equal profits amongst the needy. Bitcoin is profitable for all overall and for that reason is worthy of further investment.
Bitcoin lacks regulation which amplifies its detrimental effects on our economy and should be heavily regulated and monitored because of it. Bitcoin is considered “non governmental” which only adds to its risk of means of payment carries big risks of its failure according to Jeffrey D Sachs (Sachs). It is also “independent of government or centralized authority” as shows by Sachs in his Boston Globe newspaper (Sachs). As said by Casey Egan of Roll Call newspaper, this lack of authority and regulations leads to the exploitation of bitcoin by “terrorist or criminal syndicates” to launder money or do other corrupt operations (Egan). Some may say that increased regulation will help decrease the risk of virtual currency pirates. However Jamie Elizabeth Smith, the global chief communications officer at The BitFury Group thinks that the increased popularity of bitcoin and its mechanics will bring a “range of national security concerns for the United States” when her and other experts met to discuss the technology and its emerging national security risks (Egan). If even experts like Smith are concerned about the security risks bitcoin poses to our technology driven society, government officials must also feel the same way and see what the experts see. An Increase in regulation will not secure the safety of the cryptocurrency if the people who are supposed to be regulating don’t feel optimistic or confident about it’s plausibility. Therefore, the government must highly monitor and do it’s best to keep bitcoin surpassed to ensure domestic digital safety amongsts it’s citizens.
So is Bitcoin worth investing in further or should the government take action into regulating it? The government should do all it can to regulate and keep bitcoin underwraps in the near future. The benefits of bitcoin just aren’t enough to allow it to be disposable to online terrorist who can endanger our economy. Our jobs and capitalist society will always want the next big thing that will make one a millionaire, but never want to take into account what dangers it presents. Therefore, we the younger generations of America that have been made aware of the cybernetic dangers of cryptocurrencies by being exposed to them since a young age should educate our elders who aren’t as tech savvy. By doing so we will be able to secure a safer and more secure online work market.