85 Cryptocurrency’s

Introduction

Cryptocurrency has emerged as a transformative force in global finance, altering how people think about, use, and store money. Unlike traditional currencies, cryptocurrencies exist purely in digital form, relying on cryptographic security and decentralized networks to function (Frankenfield, 2021). With over 23,000 cryptocurrencies currently being traded, this once-niche innovation now represents a serious alternative to government-issued fiat currencies (Simplilearn, 2021). Bitcoin, the pioneering cryptocurrency, exemplifies the shift from centralized monetary systems to community-driven, digital economies (Pinkerton, 2024). Despite price volatility, the long-term trajectory of cryptocurrencies suggests they will become embedded within the digital infrastructure of the 21st-century economy.

Connection to STS

Cryptocurrency doesn’t exist in a vacuum—it is deeply embedded in the evolving relationship between society and technology. Through the lens of Science, Technology, and Society (STS), cryptocurrencies represent a response to the growing desire for financial independence and security in a digital world (Pehcevski, 2020). Blockchain, the underlying technology, is not just a tool for transferring money—it is a revolutionary method for verifying data, managing contracts, and securing sensitive information. From banking the unbanked to reshaping medical record storage, blockchain’s versatility is just beginning to be understood (Pehcevski, 2020). Still, these benefits bring challenges: regulatory gaps, environmental damage from crypto mining, and the persistent risk of cyberattacks (Li et al., 2019). The future of cryptocurrency hinges not just on innovation, but on how society adapts to its presence and enacts responsible safeguards.

History

Cryptocurrency as we know it was born from crisis. In 2008, Satoshi Nakamoto introduced Bitcoin as a decentralized response to the failures of traditional finance (Pinkerton, 2024). Initially, Bitcoin held little monetary value and was exchanged casually between enthusiasts. However, by the mid-2010s, Bitcoin began gaining mainstream attention as its price climbed into the thousands (Pinkerton, 2024). With this momentum came the rise of “altcoins”—cryptocurrencies designed to improve upon or offer alternatives to Bitcoin’s model. Platforms like Ethereum introduced smart contracts, further expanding crypto’s use cases (Pehcevski, 2020).

Trading became more accessible through platforms such as Coinbase and Robinhood, making cryptocurrency a global phenomenon (Frankenfield, 2021). As corporations entered the market, the legitimacy and value of digital currencies surged, setting the stage for today’s highly active crypto trading environment (Simplilearn, 2021).

Controversy

From energy usage to economic instability, cryptocurrencies remain highly controversial. One of the most hotly debated aspects is the environmental toll of mining. Mining Bitcoin requires enormous computational power, translating into high energy consumption and significant carbon emissions (Li et al., 2019). According to recent studies, the climate damage per $1 of Bitcoin value can range from $0.16 to $0.82 (Jones, Goodkind, & Berrens, 2022). Countries like China have taken aggressive steps, outright banning mining and trading in an effort to regain control over financial systems and curb environmental impact (Rapoza, 2021).

Critics argue that while the ideals of decentralization and transparency are admirable, the practical effects of cryptocurrency adoption may deepen economic inequality or empower unregulated financial actors (Dorn & Selgin, 2017). As with any disruptive technology, thoughtful regulation will be key in managing risk and fostering positive outcomes.

Future

Cryptocurrency is no longer the domain of niche internet communities—major corporations and institutional investors are now deeply involved. ETFs and other financial instruments are making it easier for everyday investors to gain exposure to digital assets without needing to manage private keys or crypto wallets (Singh, 2022).

This increased accessibility brings both promise and peril. Experts remain divided on crypto’s trajectory, especially as coordinated actions by powerful investors can heavily influence markets (Singh, 2022). Moreover, regulatory frameworks remain inconsistent around the world, making long-term growth difficult to predict (Dorn & Selgin, 2017). The technology itself is promising—but how it will be integrated into daily life, finance, and even governance remains an open question. What is clear is that cryptocurrency is not going away—it is evolving and waiting for society to decide how to harness it.

Conclusion

Cryptocurrencies continue to polarize opinion, acting as both a beacon of technological progress and a source of uncertainty. Their ultimate role in shaping the future will depend not only on technological innovation but on ethical, legal, and environmental considerations (Pehcevski, 2020). Whether one embraces or resists crypto’s rise, it is crucial to remain informed, cautious, and engaged. The digital financial revolution is here—how we respond will define its legacy.

AI Acknowledgement

I acknowledge the use of ChatGpt V3.5 https://chat.openai.com/ to edit the chapter and fix grammatical issues as well as reword areas for more clarity. The prompts used include

• Can you take an already written block of text and make it sound more professional?
• this is good work but can you leave the quoted points as they are in the original because they are direct quotes
• This is really good but can you simplify some of the language, use less formal words but still make it read well and professional. Also please continue to leave the text in brackets alone

. The output from these prompts was used to speed up the editing process, help generate new ideas, and supplement the content that was being added to the chapter.

References

Dorn, J. A., & Selgin, G. (2017). Monetary alternatives: Rethinking government fiat money. Cato Institute.

Frankenfield, Jake. “What Is Cryptocurrency?” Investopedia, Investopedia, 7 Dec. 2021, https://www.investopedia.com/terms/c/cryptocurrency.asp.

Jones, B. A., Goodkind, A. L., & Berrens, R. P. (2022). Economic estimation of bitcoin mining’s climate damages. Scientific Reports, 12(1). https://doi.org/10.1038/s41598-022-18686-8

Li, J., Li, N., Peng, J., Cui, H., & Wu, Z. (2019). Energy consumption of cryptocurrency mining. Energy, 168, 160–168. https://doi.org/10.1016/j.energy.2018.11.046

Pehcevski, J. (2020). Blockchain technologies and crypto-currencies. Arcler Press.

Pinkerton, J. (2024). The history of Bitcoin. US News. https://money.usnews.com/investing/articles/the-history-of-bitcoin

Rapoza, Kenneth. “China ‘Banned’ Crypto.” Forbes, 12 Oct. 2021, https://www.forbes.com/sites/kenrapoza/2021/10/11/china-banned-crypto-can-the-sec-try-doing-the-same/?sh=3c956dab455c

Singh, P. (2022). Is the financial market ready for cryptocurrency ETFs? The Journal of Risk Finance, 23(4), 456–460. https://doi.org/10.1108/jrf-08-2022-241

Simplilearn. (2021, June 29). Cryptocurrency in 5 minutes. YouTube. https://www.youtube.com/watch?v=1YyAzVmP9xQ