Many institutions and consumers alike are on board with the future of cryptocurrency and crypto mining.
However, there are risks surrounding crypto which can put off potential investors. Countries can change their regulatory policies overnight which not only maligns the mining industry within its borders, but impacts the worldwide price as well. The volatility surrounding crypto can also be a worry for those more familiar with traditional assets.
Here, I argue the case for crypto mining and how these digital currencies create exciting opportunities in terms of pushing our financial systems forward. I believe crypto should be weighed up, not against its past failures, but in its value as an economic driver for the future.
Perception is NOT reality when it comes to environmental issues
Although the cryptocurrency industry does indeed have a high level of carbon emissions compared to other sectors, the active movement to change this is already underway.
Whether it be through complying with energy-efficiency agreements, setting up green-positive initiatives, turning towards Proof of Stake cryptocurrencies, or even using carbon offsetting strategies, there is a lot of work already happening to combat emissions.
Considering the continual growth of the blockchain industry, especially with the explosive adoption of the Metaverse by consumers and businesses, many industry players are fully green energy-conscious and are vigorously committing to changing their energy-consumption.
According to Forbes, crypto is already green. Crypto mining and other activities already leverage green and renewable energy resources. Overall, the percentage of power that comes from green sources has been cited anywhere in the range of between 25% – 60%, but the message is the same. 12.1% of energy consumed and 20.1% of electricity generated is derived from renewable sources.
In fact, crypto operators, when viewed through this lens, might actually be greener than the norm. Stated a different way, and verifiable by publicly available information, crypto mining and operators can use more renewably sourced energy than the average organisation, at least in the U.S, according to the U.S. Energy Information Administration.
Ushering in rescue remedy for the global economy
So far, blockchain technology has proved to have impacted the following business practices in several industries:
- Improved financial institutions’ cross-border transactions
- Messaging apps have used the technology in favour of deals with private investors
- Cloud computing can use blockchain to execute smart contracts and resist hacking
- Government and public records can use blockchain to reduce paperwork and fraud while increasing accountability
But today we face economic meltdown in many asset classes and markets. At the same time, confidence in global banks and government is at an all time low. Central bank policy has continued its policy of Quantitative Easing for the last 14 years with disastrous consequences. Fiat currency, for most of the Western world, is only worth what markets and bearers believe it to be. Added to this, in countries where domestic currency is constantly fluctuating, causing living conditions to plummet, cryptocurrency can be used to circumvent these situations where each transaction can be made without the oversight of the government.
1.7 billion people worldwide don’t have a bank account. They are financially disadvantaged and must often resort to dangerous lending practices.
But these same people are connected via their cell phones. This has created interest in cryptocurrency which in some cases is the only real option available to facilitate transactions. This is because thanks to decentralisation, for countries with currency instability, the ability to use cryptocurrency to trade across borders with growing economies globally engenders a real level of economic equality.
Entrepreneurial momentum: the true drivers for change, growth and prosperity.
Across the world, economic is built on the diversity and depth of its people’s ability to turn their creative skills into an economic foundation. A corporatized economy is a very unhealthy path because of the evils associated with centralisation, control and monolithic tendencies.
Cryptocurrency represents a global economy in which all users exchange currency regardless of their citizenship. This is particularly profound for entrepreneurs no longer subject to a national audience but one that is international with whom funds can be exchanged without the hassle of exchange rates and international law. In fact, there are cryptocurrency companies that assist business owners in Africa to make financial transactions with European, American, and Asian companies. The intention is to create financial coverage and financial liberation through exchanges worldwide.
Regulators, tax authorities and governments alike should be embracing the innovation and the enabler of cryptocurrencies. Those countries that have done so – Portugal, Dubai, Switzerland, El Salvador and locations like Texas, Rio and Wyoming – are all enjoying an influx of talent, international inflow of funds and a boost to their economies. This is a key example of how fostering the real economy by bolstering efforts to build grass root economic strength pays dividends for the broader population and financial prosperity of more than just the entrepreneurs. Crypto continues to be a wealth generator for economies and communities especially for those that encourage and foster innovation.
Future of crypto and crypto mining
So crypto can and will continue to bring power and freedom to the people and, despite the naysayers, the technology itself is designed to reduce fraud and corruption. This is particularly beneficial for underdeveloped countries and government-oppressed peoples, which is now, sadly becoming a reality in many parts of the world.
At the end of the day, the utilitarian structure of cryptocurrencies allows people to invest in their future by empowering them to transact with a global economy boosting their own economy and quality of life. This is the backdrop that has to be assessed when looking at crypto mining. In this way, the case for its importance in our economic development is not a hard one to make.