3. Economical Impact of Cryptocurrencies
● Increased global investments and job creation
● Increased availability of financial services in unbanked areas
● High volatility of the exchange rate
● Removal of third party banks
● Government monitoring of data/transactions reduced
● Pseudonymous identities during transactions
● Alternative for countries with unstable currencies
● Reduced/Removed fees for financial services
● Ease of creating cryptocurrencies
4. ● Protection from inflationary impacts
● Transparent, fixed crypto supply vs government-determined money supply
● Spurred digitalisation of the world
● Lack of government policies
● Ever-increasing complexity of the cryptocurrency production process
● Regulatory uncertainty, including illegality in some countries
● Increased necessity for caution
● Rise of the shadow economy
● No ‘minimum amount’ for transfers
Economical Impact of Cryptocurrencies
6. Social, Ethical, Moral Impacts & Challenges in Cryptocurrency
- Bitcoin’s value is secured by the community
of users. The community of users records
the transactions and ensures the value.
- It’s a radically democratic way of thinking
about currency (ex. countries like El Salvador
- Risk how much you can afford to lose
- It makes it an interesting investment
- Bitcoin is not stable, high volatility makes
investing risky, especially for most people
(ex. middle-class, who cannot afford ±50% in
- Bitcoin doesn’t really have any way to secure
7. 2. Anonymity
- Most transactions are Bitcoin, and the level
of anonymity of those using bitcoin is not
total. (buying/converting Bitcoin can mean
increasingly formal forms of personal ID to
be used for identity validation)
- Yes, crypto can somewhat be used for
unethical means, but to say that it makes it
evil is the equivalent of calling any other
currency in the world like fiat money evil.
- “Easier” to do criminal activity in ways other
currencies do not (ex. Turkey $2 billion
- Even if Bitcoin can be easily tracked, other
cryptocurrencies like Monero allows for this
anonymity to be used for criminal activity
Social, Ethical, Moral Impacts & Challenges in Cryptocurrency
8. 3. Role of Government
Opp Government Regulation
- A government is unable to exert such
pressure if bitcoin is used for payments
- Bitcoin’s decentralisation of power can help
to increase democracy in a society.
- Problem with conventional currency is all the
trust that’s required to make it work. Bitcoin
is based on crypto proof instead of trust.
- Bitcoin is based on unbreakable contracts
between individuals not reliant on, or
influenced by, any third party.
Pro Government Regulation
- Governments and law enforcement agencies
need to be proactive in engaging with the
technology and the organizations that
facilitate the use of Bitcoin.
- If actions taken are effective, then Bitcoin
may grow into a currency able to deliver
improvements in the use and effect of
money in our lives.
Social, Ethical, Moral Impacts & Challenges in Cryptocurrency
10. Political Impacts of Cryptocurrency
● For countries with weak economies, crypto provides a solution to the decline of a country’s currency
due to poor political decisions.
● Governments will pay a premium in their country to get out of their fiat currency.
● Countries such as Nigeria, Vietnam, and the Philippines are using cryptocurrencies the most.
● Governments can transfer money safely.
● The primary reason behind Nigeria’s adoption of cryptocurrency is the high cost associated with
traditionally sending money across borders.
● You are a doctor in Nigeria, and you get paid in Nigerian currency.
● The Nigerian currency gets devalued from the US dollar.
● If you make 200,000 Nigerian dollars and you want to buy a car, it may convert to 20,000 US
● If the currency goes down, that 200,000 Nigerian dollars may go down to 10,000 US dollars.
● Using a decentralized cryptocurrency will allow that same doctor to transfer his or her income to
crypto, where it will not be affected by a government’s/politician’s economic problems.
12. Political Impacts of Cryptocurrency
● Proof of Work and Proof of Stake enable better trust for
currency rather than government currencies.
● Proof of Work ensures miners don’t lie about transactions.
● Proof of Stake allows miners to mine or validate block transactions based on the amount
of coins a miner holds.
● Politicians and governments will be able to increase citizens’ trust in currency if crypto is
more widely used.
● Right now, fiat currencies only have value because the government says they do.
● To an increasing amount of people, this means nothing.
● Fiat currencies are not backed by any tangible assets.
13. Political Challenges of Cryptocurrency
● Cryptocurrency is the 1st decentralized peer-to-peer payment network.
● Governments are afraid due to the lack of central authority or middlemen.
● They will not be able to regulate cryptocurrency as they could with fiat currencies
● Will not be able to dictate how crypto is transferred, dictate who profits from movements, and
● Overcome capital controls (any measure taken by a government/central bank to limit the flow of
● Used for money laundering or illegal purchases.
● Undermine/destabilize the authority and control of central
14. Political Challenges of Cryptocurrency
● Crypto does not require the existing banking system as it is
created in cyberspace.
● If cryptocurrency becomes popular, less people will rely on
banks and the system will become less relevant.
● Criminals can send untraceable financial transactions, since the
blockchain does not show the specific information about a user.
● This could motivate more crime as people have less worries about being caught.
● Fixed number of cryptocurrency such as Bitcoin (21 million).
● Governments cannot make more cryptocurrency to get out of debt (more careful spenders).
● Potential negative effects in a fiscal emergency (government needs money fast).
17. Cultural Impact of Cryptocurrencies
- New way of payment
- Point to point
- No more middleman
- All transactions recorded on the
- Transparent transactions
- No double spending
- Transactions can be tracked
- Democratize the economy
- no central authority
- based on maths instead of gold
As Teddy Wayne writes for the Independent, he
notes the younger generation as operating in a
completely new way as opposed to savings, mutual
funds and pensions:
“As traditional paths to upper-middle-class stability
are being blocked by debt, exorbitant housing costs
and a shaky job market, these investors view
cryptocurrency not only as a hedge against another
stock market crash, but also as the most rational,
and even utopian, means of investing their money.”
18. Cultural Impact of Cryptocurrencies
- Blockchain & Decentralized concept
- Solved double spending
- Digital uniqueness
- Distributed ledger technology
Fiat money → online transactions →
19. Cultural Challenges Faced by Cryptocurrencies
- Problem with inheritance
- Without the keys, can not access wallet if someone passes away
- Can not inherit directly without knowing the password
- Investment or Asset?
- Day trading tool/getting rich tool rather than an asset for store of value
- Only trust cash
- Don’t understand how blockchain works
- Don’t feel safe with a bunch of numbers
- Don’t see the value
- Afraid to buy
- Wide known by the public
- Afraid of risk
21. 1. Bitcoin
- Launched in 2009, bitcoin is the world's largest cryptocurrency by
- Unlike fiat currency, bitcoin is created, distributed, traded, and
stored with the use of a decentralized ledger system, known as a
- As the earliest virtual currency to meet widespread popularity and
success, bitcoin has inspired a host of other cryptocurrencies in
- low banking/transaction fees and fast transactions
- censorship resistance/pseudonymity
- the ability to transact electronically/peer-to-peer focus
- decentralised system/user autonomy
22. 2. Ethereum
- Ethereum is an open-source blockchain-based platform
used to create and share business, financial services, and
- Ethereum users pay fees to use dapps. The fees are called
"gas" because they vary depending on the amount of
computational power required.
- Ethereum has its own associated cryptocurrency, Ether or
- Its cryptocurrency is now second only to Bitcoin in market
23. 3. Cardano
- Cardano is a blockchain platform that aims to be a decentralized application (DApp)
development platform with a multi-asset ledger and verifiable smart contracts.
- Cardano is being built in five stages: foundation, decentralization, smart contracts, scaling, and
- Cardano runs on the proof-of-stake Ouroboros consensus protocol and developments are
informed by scholarly academic research.
- The primary cryptocurrency of Cardano is called "ADA"
- Aims to solve three main problems
- Proof of stake
- Epochs, slots & slots leaders
- Data storage
- Metadata for transactions
- Improvement proposals
1, hundreds of billions of dollars have flowed into cryptocurrency, and has brought with it an entire industry dedicated to supervising crypto exchanges that take place all over the world (eg: software engineers). As crypto continues to be legalised outside of the western world, we can expect more investment and job creation. Effect of this job creation: higher income averages around the world, higher living standards, people are well off.
2. Talk about where banks can't reach because too far etc., or high risk. Can send transfers from rural areas without banks now.
3. Resulting in imbalance of trade orders (everyone buying or selling all at once)-> may cause suspension of trading if in high amounts.,, high risk investments
4. Loss of jobs in banking sector, or big banks will incorporate crypto services/exchanges. No banks means Acceleration, cost reduction and significant simplification of settlements between entities, since the scheme excludes “unnecessary” intermediaries (that often charge a hugh fee). However, who will u call when ur mortgage payments get hacked, how will u earn interest on savings, who will assist when glitch occurs or transfer of assets fail? No middleman can also mean you are on your own, likely increasing the number of accidental transactions initially. However,, banks have also in the past tinkered with the money supply and introduced recessions, aggravated unemployment, and profiteering/corruption is high in the banking sector.
5. Cant use fiscal policies, cant really control crime either.(silk road owner appluaded bitcoin)
6.Inability to trace participants in financial transactions (anonymity, laundering of criminal proceeds, financing of crime, fraudulent activities, etc.). However, if the same addresses are used again, then easy to locate.
7. Example zimbabwe, columbia (million for coffee): government uncertainty/ political corruption results in highly fluctuating prices, hyperinflation in the countries, national currencies arent smart to use. So places here can use a relatively stable alternative (like cypto/bitcoin)to be paid in, so they can take it safely (in their head seed words) to immigrate to another safer/stable country. Also the bitcoin they get paid in can have a higher exchange rate in their country, so extra money can be made (saved, or spent, general higher standard of living).
8. Sometimes bank transfers across nations can nab a huge percentage of the transaction, so it has improved financial institutions’ cross border transactions. Like 10 percent from paypal
9. Over 2000 crypto exist, allows people/firms to establish their own currency for their own purpose (example kodak intend to launch own crypto to make sure photographers are paid properly)
Governments hoped an expansionary monetary policy, whereby central banks increased the amount of money available to people, would keep economies moving amid prolonged shutdowns of certain sections of the economy. By June 2020, stimulus action taken by countries had surpassed $10 trillion, according to a McKinsey Global report. U.S. government-spending alone amounted to $6.5 trillion in 2020, up 48% from the previous year. “There’s a crazy amount of money being printed right now, so the value of money is going down. Assets with limited supply, like bitcoin, real estate or shares/stocks, those price tags are going up,” Oki Matsumoto, CEO of Monex Group told CoinDesk. Fixed supply - no inflation as the real value of it is not altered by inflation.
Again, gov money can be printed due to the gov’s wishes, real value depends on them. However, bitcoin is fixed at 21 million, transparent and fixed supply that can’;t really release bitcoin to solve macroeconomic aims like unemployment, inflation, balance of payments etc. In fact, the amount of available Bitcoin will decrease over the years. When someone forgets their private key, for instance, all the BTC that person owned are now lost and the system will never recover them. Over time, Bitcoins will continue to disappear from the system, meaning that the remaining BTC will rise in value as they become increasingly rare. However, this is not just true for Bitcoin. Most cryptocurrencies enforce an upper limit on their coin supply, after which no new coins will be mined.Proponents of Bitcoin and other cryptocurrencies aren’t concerned about a dwindling money supply. They point to Bitcoin’s infinite divisibility as one solution. As BTC gets more valuable, we’ll just use smaller units, like Satoshis, to transact. Some economists agree with that logic, saying a deflationary currency system could fundamentally change all our assumptions about money. On the other hand, some economists feel that a deflationary currency would be a disaster, leading to a spiral of hoarding and not spending BTC.The reality is that we don’t really have any history of deflationary currency systems to base our theories on. What will happen when Bitcoin reaches 21 million and no further coins are mined is anyone’s guess.
3.especially the financial sector, cryptocurewncies have allowed people all around the world (regardless of where they live) to carry out transactions to many digitally without a bank, thus without high fees or the hassle of having a good credit score etc. how far you live from a bank to send money to your loved ones doesnt matter anymore, one tap and you can transfer bitcoin or other cryptocurrencies hassle free.
4. No fisal or monetary policies (interest rates, money supply, higher taxation or increased gov. expenditure) can be used on cryptocurrencies as they are decentralised, unlike fiat countries, so if crypto currencies become the dominant mode of transferring money, the gov. Will find it hard to control employment or inflation rates through money/implementing these policies. Unemployment or inflation may fluctuate rapidly without someone to control it.
5.as the complexity of computing operations and the need to use more powerful computing systems in the future increase, mining will become available only for large players in the cryptocurrency market (individual corporations and state entities). May become monopolistic, driving price to their will.
6. Some countries, in fear that shifting demand to crypto and away from the national currency, would devalue the national currency. So they banned outlets or exchanges from issuing crypto, or like in nigeria banned the banking sector from facilitating cryptocurrency transactions, if someone is found doing transactions in crypto their bank accounts are frozen. That this is happening now is down to two factors. The first is the growing number of crypto scams – they grew 40% in 2020 and are forecast to increase by 75% this year – and its links to illicit finance. In theory, restricting the mining and use of cryptocurrency should eliminate this problem.
The second reason for banning cryptocurrency,is the threat it poses to government-directed monetary policy. While bitcoin or Ethereum may provide citizens with a useful hedge against a plunging national currency, cryptocurrencies undermine central banks’ ability to use monetary policy to fix the problem underlying the currency depreciation, and diminish their influence over investment, spending, or inflation within their jurisdictions.
7.Loss of data in a cryptocurrency wallet makes it impossible to withdraw financial assets from it in any other way, no third party bank to contact makes it harder to find help.
8. Development of the shadow economy, leading to tax evasion, which basically destroys the idea of an integral state.
lax reporting requirements:
The IRS may not be able to trace crypto income or transactions if they go unreported by exchanges, businesses and other third parties. And that means the income may not be taxed. No tax in long run, no gov public goods, no subsidies for key industries, no education/infrastructure/unemployment benefits etc.
Shadow economy - includes not only illegal activities but also unreported income from the production of legal goods and services, either from monetary or barter transactions.
9. Like reddcoin, minimal transactions to support creators. In bug banks fees to transfer small amounts may be bigger than the amount themselves. No third party to claim cash for its services, so no additional fees, or no cap to making transactions. Ease at which money is spent all over the world increases.
Offers cheaper transaction rates internationally than western union or paypal, no banking fees (account maintenance, minimum balance fees, no overdraft charges and no returned deposit fees etc.. Not faster than alibaba’s payment system soon to be introduced, yet fast and free payments are not currently available to everyone in the world so Bitcoin can still fill a useful niche.
the ability to use the system without seeking permission,the inability of the government or other authorities to block payments,the inability of the authorities to reverse payments, and resistance against the entire system being shut down (as it is decentralised and supported by nodes all across the world). Cash has these same properties, but one thing cash doesnt have is: the censorship resistance of the rules of the monetary system as a whole. Bitcoin end users may have the ability to enforce all the rules of the system, which cannot be said for physical cash. This ensures some interesting properties, such as the supply cap of 21 million or preventing other inflationary policies — not available as options for physical cash. Explain pseudonyms
Which many banks offer but not with the other factors (low fees etc.). Peer -> users can send and receive payments to or from anyone on the network without requiring approval from any external source reducing hassle.
More autonomy than fiat currencies, educated many on the possibility to be autonomous with financial and personal information (no third party to offer advice, to collect data, no personal data stores to sell your data to companies. Decentralised means system cant be shut down by attacking one place, it is distributed across many nodes, no denial of services possible.
Available to populations of users without access to traditional banking systems, credit cards etc. j need smartphone or computer to send and receive.