Is crypto currency a friend or a foe to the global economies?

Thirupalu Aug 13, 2022 13:58 AM



Crypto currency is a digital/virtual currency which serves the same purpose of physical currency. These coins are encrypted digital files. This wouldn't be in the control of any state since its dynamics is purely driven by objective market forces of demand and supply. So its dynamics can not be molded to favour the interests of humans there by to support their economic systems. So it is not in the favour of humans.


What is currency?

Currency is a means to exchange goods and services among individuals. In the early human societies, goods and services were exchanged in their original forms.

The goods and services were brought physically to the place of exchange. This was called Barter System. 

But in the course of time bringing the goods to the place of exchange, its storage, etc had become challenging.

To resolve these issues, humans started issuing tokens for exchanging goods and services. These tokens bore the value, signatures, symbols, promise of the person issuing the token, etc. These tokens form currency.

 

Modern currency 

In the earlier times, the currency tokens/coins were made of precious metals such as gold, silver, etc. But in course of time, these metals have become costlier. So to reduce the cost of making currency, paper currency has become popular. But the circulation, printing, value, etc are in the complete control of states. So the states can mold the dynamics of their currency to support their economies. 

Crypto currency 

Crypto currency is a virtual/digital currency. The currency is in the form of highly encrypted digital files. The mining of the currency is not in the hands of any state. Anyone can mine it. Much electric power and much highly configured computers are needed in mining of the currency.

Crypto currency is not in the favour of humans and their economies

State is a virtual mechanism/political authority developed and constructed by the humans for themselves of a particular region or geographical enclosure, etc to ensure equitable societal conditions to all the humans in that entity and progress in all the fields by molding/manipulating the natural, market, social forces, etc in favour of themselves.

Natural laws do not know who is human what are his / her interests. For example a television does not know what it is doing. Human manipulated the laws of physics to form a television to serve humans. Here the laws of physics are not in the hands of humans. But humans designed such a physical structure to manipulate those laws to serve humans.

If we want this TV serve humans that too in a better way, its ecosystem composing of its biotic (manufacturing people, engineers, marketing people, heads of companies, customers, etc) and abiotic (market, prices, factories, logistics, etc) sub-systems should be in the complete control of the state/government. 

The thing which is not in the control of state/ government, can not serve to the totality of humans.

It may serve individual humans or a particular section of them but not to their totality without which a civilisation can not progress.

The ecosystem of crypto currency is not in the complete control and regulation of any state/government. So never can it safeguard the interests in the totality of humans.

It may work as a bug/virus/bacteria which may cause irreparable damage to global economies. 

Since no state has the control and regulation on crypto currency, the investors have much risk in investing it. It is better to keep distance from it.

To know more about crypto currency you may click on the link below.

https://www.investopedia.com/tech/most-important-cryptocurrencies-other-than-bitcoin/

 

 

 

 

 


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