Whether you support bitcoin or not, chances are you know someone who owns some or trades it.
In November 2021, Pew Research Center found 16 percent of Americans have “invested in, traded, or used” cryptocurrencies. And that number is expected to grow in 2022. As a result, the most popular type of cryptocurrency has taken the U.S. (and globe) by storm.
What explains bitcoin’s rise in popularity? Is it too volatile to replace fiat money? Is it worth defending?
This column will explore these facets.
Cryptocurrency Defined
To understand digital currency, one must define it.
Investopedia describes cryptocurrency as “digital or virtual currency that is secured by cryptography.” As a result, crypto is reportedly difficult to “counterfeit or double-spend.” There are reportedly 10,000 cryptocurrencies in circulation today.
Moreover, bitcoin mining has a low carbon footprint. Mandy Gunasekara, former chief-of-staff to Trump EPA Administrator Andrew Wheeler, noted the practice “uses only a third of the energy” compared to traditional extraction methods.
What’s the draw? Compared to traditional currencies, it’s decentralized and largely devoid of fees and transaction times.