With the rise in its popularity, crypto has brought wide-reaching environmental and cultural concerns.
Cortesy of Forbes
By Jonathan Hernandez
For the past few weeks, I have noticed a lot of posts on social media about a trending phenomenon called “cryptocurrency.”
There’s plenty of cryptocurrencies making the rounds, like the already popular Bitcoin, Dogecoin and Ethereum, along with upstart cryptocurrencies, such as Shiba Inu. Companies like Coinbase, Solana and FTX have also started a pattern of businesses that specialize in the crypto industry.
There’s even been in-person crypto events, such as the Florida Bitcoin & Blockchain Summit that took place in Tampa earlier this month.
However, there are plenty of detrimental flaws with cryptocurrency, from its cultural influence to its environmental concerns.
As it stands, almost all cryptocurrencies are used for speculation, just like stocks in the stock market. People buy crypto because they believe the value will go up.
Without getting into hypotheticals, most people don’t use it to buy everyday essentials like groceries or physical items you can find in a store.
Honestly, I have no idea what the “blockchain” can do that physical money can’t. In other words, it’s solving a non-existent problem.
On top of that, many cryptocurrencies tend to fluctuate in value, with external influences like social media playing a big role in their rise and fall.
The cultural influence cryptocurrency has across popular media is not to be understated. Many mainstream outlets have covered cryptocurrency with praise, but also with minimal critique.
Non-fungible tokens
Currently, one of the most widely known uses for cryptocurrency is to purchase non-fungible tokens (NFTs), a unique unit of data that almost serves as digital trading cards.
To put it simply, NFT’s are links to an image, but are stored via blockchain technology, powered by cryptocurrency like Ethereum.
Many brands are promoting NFTs, such as Reddit and Electronic Arts. Even popular figures like Tom Brady and Lil Nas X are hopping on the bandwagon.
One issue with NFT technology is that it caters to such a niche audience.
Another issue is, unfortunately, rampant art theft by NFT enthusiasts.
There’s been countless online stories of artists having their work stolen and used by people who are into NFTs, who tend to have profile pictures of AI-generated monkeys or lions that pretty much look the same.
Most of these NFT fanatics claim that what they do is beneficial to artists, all while screwing over said artists by putting their art on the NFT marketplace without the artist’s consent.
In fact, many of these artists want nothing to do with anything related to cryptocurrency or blockchain technology. On top of that, those NFT fanatics would resort to elitist buzzwords and even bigotry, such as transphobia or racism, if someone criticizes them for stealing their work that they put lots of time and effort into.
It’s the antithesis of what art is supposed to be all about: creativity and individuality.
This further proves the point Jackson Palmer, one of the founders of Dogecoin, made that crypto is an inherently right-wing technology, including on social issues, given their hatred for marginalized groups.
Are these the type of people you want operating a run-of-the-mill business? A toxic community with a cult-like mentality willing to bash on others merely for who they are?
The cult-like mentality surrounding NFTs was also the reason one of the creators behind it, Anil Dash, shunned it as a scam claiming images are unable to be actually stored in the blockchain. In other words, at the end of the day, NFTs are useless and have no real-world value. It can’t be eaten, worn, held, played with as a toy, or used to pay for essential items, acting in a similar way as paying someone with exposure.
Broader implications
Lastly, and this is one of the biggest reasons people are critical of cryptocurrency, there is its environmental impact.
Most crypto mining facilities tend to be in power plants that consume fossil fuels, and as a result produce carbon emission.
This is especially the case with cryptocurrencies running in a “proof-of-work” system. The most popular cryptocurrency, Bitcoin, consumes around 1,900 kilowatts per hour and emits about 900 kilograms of carbon dioxide while Ethereum, the cryptocurrency most used for NFTs, consumes 180 kilowatts per hour and emits 85 kilograms of carbon dioxide, all for a single transaction for both currencies. Meanwhile, a single tweet only consumes a very miniscule amount of it, only 100 watts per hour and 0.02 grams of carbon dioxide emissions.
The silver lining to all this, is that the federal government appears to have taken notice of the cryptocurrency industry and is starting to heavily regulate it to where people will have to report to the IRS if they do NFTs, which is expected to take effect sometime around the end of next year.
From what I’ve seen, the only people really pushing and promoting cryptocurrencies and NFTs are people who already have enough money and influence. As a result, it makes me believe that this whole industry is nothing more than a pyramid scheme that’ll end up screwing average people over while the rich get more richer, all while wasting energy on useless status symbols.
Make no mistake, crypto, while tempting, is a risky and dangerous investment that not only can negatively impact you, but in the long run, also those you care for and the world around you.
My suggestion, if you’re going to consider investing in a cryptocurrency, don’t. Your time is better spent investing in GameStop or AMC in the stock market than in crypto.
As much as I want St. Petersburg to grow, I do not want this city to end up like Miami, another haven for nerdy weirdos hooked on a shady industry that could have devastating long-term effects for the city we and plenty of wildlife call home.
Jonathan Hernandez is a sophomore digital communication and multimedia journalism major.
