Cryptocurrency Series
The Ethics of Bitcoin (Video)
Bitcoin is quite a phenomenon. This power point video gives a short history of the virtual currency. Some argue Bitcoin is evil. Is it? The video analyzes the ethics of the product and its uses. VIEW VIDEO…
More on the Ethics of Bitcoin
Bitcoin is a digital currency that uses encryption techniques to verify the transfer of funds. Bitcoin transactions take place on a peer-to-peer basis and consequently the currency operates independently of third party payment providers as well as government and banking regulation. Transactions using bitcoin are confirmed by a transaction ledger called the blockchain, which makes all transactions using the currency public to those within the bitcoin network. Bitcoins are created via the process of mining, which involves solving complex mathematically equations using powerful computers, the limit of 21 million bitcoin has been set on the amount that can be mined, after which no further bitcoins will be made available. READ MORE…
Bitcoin: To Regulate or not to Regulate?
Einstein said technology has a tendency to exceed our humanity. In the midst of the cryptocurrency and blockchain technology revolution, regulation becomes increasingly important. Effective ethical regulatory frameworks help us recognize our moral blind-spots as we confront cryptocurrencies and their underlying technological protocols
The not so distant 2008 global financial crisis (GFC) rekindled questions about the nature of money. Crises provide threshold moments when we doubt institutions we have long taken for granted and trusted. READ MORE…
Ethics Update on Cryptocurrencies
Over 2000 cryptocurrencies have emerged in the last decade (Taskinsoy). Bitcoin being the most well-known. During the 2008 Global Financial Crisis, the (still) enigmatic Satoshi Nakamoto published a white paper entitled Bitcoin: A peer-to-peer Electronic Cash System. Several years since its inception, Bitcoin remains a nascent payment system. Traditional economists continue to find the concept difficult to grasp (Taskinsoy). Yet, cryptocurrencies like Bitcoin pose a challenge to the current economic order. READ MORE…
NFTs: Risks, Rewards, Ethics
Despite the popularity of NFT (Non-Fungible Token) in the media and across pop culture, few can provide a comprehensive explanation of an NFT and whether these entities are a worthy investments. Fewer analyze their ethical impact. The market for NFTs was US$41 billion in 2021, nearly matching the value of the entire global fine art market. As the NFT market continues to expand, it becomes increasingly important for potential investors to develop keener awareness of the nature of NFTs. This knowledge must include NFT’s strengths and weaknesses as an asset. ESG (Environmental, Social, and Governance) leaning investors and sellers should be wary of the ethical issues of NFTs. While buying or selling an NFT may lucrative, profits and salability are unpredictable, buyers and sellers alike regularly fall victim to fraud, regulation is nonexistent, most artists struggle to find any success, and the environmental impact is shockingly bad. The risks may not be worth the potential reward. READ MORE…
Blockchain as a Force for Good (Part 2)
Part 1 of this paper explained blockchain technology and explored the benefits brought about by public blockchains. Part 2 takes a more critical perspective. Section 4 discusses how public blockchains embody a libertarian sense of justice through alternative seats of authority. Section 5 returns to the criticisms highlighted in the introduction: that cryptocurrencies are “contrary to civilisation”, “poison”, “evil”, energy-intensive and likely to go to zero. And Section 6 applies contractarian theories of justice to blockchain technology. All three philosophies find in favour of the justice of blockchain and thus this paper concludes that blockchain is a force for good. READ MORE…
Blockchain as a Force for Good (Part 1)
Bitcoin was created as an alternative to government-issued “fiat” currencies, an entirely novel “digital cash” to serve as a native internet currency.[1] Using algorithms and digital signatures, Bitcoin transfers value across a network without having to rely on a central intermediary. The underlying technology of Bitcoin has since been termed blockchain. Blockchains create decentralized consensus. Later blockchains, such as Ethereum, allow for commercial arrangements to be secured by a network – facilitating the emergence of decentralized financial instruments, decentralized artwork and decentralized identities.[2] Blockchains have also been deployed by traditional institutions, such as Central Banks, to process financial transactions with greater efficiency. READ MORE…
Case Study: FTX and Sam Bankman-Fried
On November 6th, 2022, shockwaves rippled across the crypto industry. What first appeared to be an accounting oversight turned out to be a multi billion dollar fraud. FTX, which stands for ‘Futures Exchange’, was found complicit in a nefarious scandal following the actions of Sam Bankman-Fried (SBF), the CEO. Over the past decade, the company experienced significant growth, solidifying its position as one of the leading digital currency exchange platforms. FTX’s popularity grew as cryptocurrency investments surged. READ MORE…