Cryptocurrency as a Legal Tender

There are thousands of cryptocurrencies in the market and some of them have some utility. We're going to talk about about why cryptocurrency should not be a legal tender.

4 months ago   •   5 min read

By Nerd Clump
Table of contents

Some of us are not aware of the cryptocurrency market. And some of us also didn't know what's happening in the world of cryptocurrency. And If you're a newbie and want to know what is cryptocurrency then you should read this article about Cryptocurrency from Investopedia.

Should we just start with news about who was the inventor of cryptocurrency and the blockchain?.

Satoshi Nakamoto is the first person to invent cryptocurrency and implemented blockchain technology.

We don't know that satoshi is alive or dead and where's he but we all know he is one of the smartest people in this universe. Satoshi invented the first cryptocurrency known as Bitcoin in 2009.

Bitcoin is not for everyone because one of the reasons is the high price and slow transaction speed, Some people are into the cryptocurrency market for a reason and that's greed.

Now you'll know why was cryptocurrency invented in the first place.

Why was Cryptocurrency invented?

Nowadays people are into cryptocurrency for a reason and that's because of greed and people invest in cryptocurrencies to grow their money and this really makes the crypto market so much volatile and we hope we get a cryptocurrency that can't be manipulated by anyone. And which is environmentally friendly. Let's know why was cryptocurrency was created.

The cryptocurrency was created for some reasons:-
first of all the first reason was that the great financial crisis and this was caused by due to banks and satoshi believed that banks should not be controlled by any individual, entity, or government. And satoshi wanted banks to be decentralized and not controlled by anyone.
The second reason is Blockchain technology and this technology records every transaction even if the transaction gets fails or gets successfully transacted.
The third reason is anonymity while sending money, But this also leads to criminal activities but the blockchain saves everything like details about who sent the money and to whom it was sent to and at what time. But there's a crypto that is a privacy-oriented cryptocurrency and you all know who will use this cryptocurrency, we all know criminals are going to send suspicious transactions and other things like money laundering.

We just need a cryptocurrency that is good in every way and stops money laundering.

How does cryptocurrency impact our environment?

If you don't know every transaction is approved by a computer/miner by solving complex problems. And for approving the transaction they get a reward in their crypto address.

Like if they are mining ethereum then they will get some ethereum as a reward. And the reward is getting lower as more miners are trying to mine ethereum in this world. Now we should talk about how cryptocurrencies destroy our beautiful nature.

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Carbon Dioxide Emissions

The first cryptocurrency block was mined of bitcoin by Satoshi Nakamoto on 3 Jan 2009. And that block is also known as genesis block(block 0), Satoshi Nakamoto got a reward of 50 bitcoins remember the price of bitcoin was low as a cent. According to the Sierra Club, carbon dioxide produced via bitcoin mining could increase the earth's temperature by 2 degrees celsius over 30 years.
People are building warehouses in cold areas to save money on keeping miners cool. People are so greedy that they don't even care about our planet.
People are cutting trees to make spaces to build their mining rigs.

According to the Digiconomist blog, founded by De Vries, a single bitcoin transaction has a carbon footprint of 359.04 kgCO2 – equivalent to the carbon footprint of 795,752 VISA transactions or 59,840 hours of watching YouTube. The energy usage is equivalent to the power consumption of an average U.S. household over 25.91 days. The annual carbon footprints for Delhi and Mumbai have been 69.6 Mt CO2 and 32.1 Mt CO2.

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Bitcoin may consume as much energy as all data centers globally - Digiconomist
The Bitcoin network may consume as much energy as all data centers globally, with an associated carbon footprint the size of London.

Electricity Consumption

People are getting into cryptocurrency mining because of cheap electricity in most countries. These people make a lot of revenue by mining. Some countries produce electricity such as coal and natural gas. If a man is mining cryptocurrency with the help of solar energy then he's saving the world by not using the electricity produced by coal and natural gas.
There is a bitcoin mining operation in Iceland that uses more electricity than all the houses in Iceland, did you know that Iceland uses 100% Renewable. About 73% coming from hydropower and 27% from geothermal power.
Depending on the estimate, the global energy required for mining the most successful cryptocurrency is between 67 and 121 terawatt-hours a year.

According to the Cambridge Center for Alternative Finance (CCAF), Bitcoin currently consumes around 110 Terawatt Hours per year — 0.55% of global electricity production, or roughly equivalent to the annual energy draw of small countries like Malaysia or Sweden. This certainly sounds like a lot of energy.

Can Cryptocurrencies replace traditional money?

No, Its not possible right now because of the volatility of cryptos and significant security risk of the money invested. And its easy to do money laundering by investing the money in cryptocurrency in a lot of ways.

Recently, a country known as El Salvador, The reason was that the people who works outside the country can send the money to their families in some seconds via bitcoin. We don't know why El Salvador chosen bitcoin, and their are a lot of altcoins better than bitcoin. Altcoins have better transaction speed and transaction fees better than bitcoin.

In my opinion none of the cryptocurrencies are not perfect in some ways. If you know any cryptocurrency then you can contact us on our twitter handle here.


Conclusion

There is no crypto that can be used as a legal tender because of a lot of reasons and we want people to use solar energy for their crypto mining if you still want to mine the cryptos and plant some trees every year. Elon Musk also wants bitcoin to be environment friendly.

And we hope that crypto shouldn't be looked as ponzi scheme. People are investing in cryptocurrency so that they can grow their money as fast as they can. If you still want to grow your money there are a lot of ways like you can invest in real estates, stock market etc

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