Should cryptocurrency replace American dollars? By Isaiah Hanson - - PowerPoint PPT Presentation

Should cryptocurrency replace American dollars?

By Isaiah Hanson

What is Cryptocurrency?

• Digital money held in a “digital wallet”
• Started by Satoshi Nakamoto in 2008 with Bitcoin
• Decentralized currency
• Holds value internationally

Blockchain

• Records every transaction that uses cryptocurrency
• Three main components

○ Data ○ Hash ○ Previous hash

• Can be broken by hackers

Bit Mining

• How cryptocurrency is made
• Verifies that transactions are valid
• Very expensive

Decentralization

• Not controlled by a central authority
• Governments and banks can still regulate exchanges

○ e.g. bitcoin to dollars, or vice versa

• Bitcoin is becoming more centralized
• Can be used in criminal activity

Effects on Global Economy

• Eliminates need for a middleman
• Hard to regulate
• Could cause economic crash

Is Cryptocurrency Actually Safe?

• Hard to steal
• Programmers constantly working to close vulnerabilities
• Highly volatile

Case Study

• Bob gets offers from two companies.
• The first company is not desired

○ Average pay

• The second company is of high interest

○ Higher pay ○ Paid in Ethereum ○ Will not adjust to market value

• Bob is aware of economical effects of cryptocurrency
• Bob does not want a risky monetary pay
• Bob accepts offer with second company

Kantian Evaluation

• Bob did not deceive anyone
• Bob had no obligation to one company
• Bob did not do anything wrong

Act Utilitarian Evaluation

• Bob had two offers and could only choose one
• Consider company value, pay, pay type, monetary risk
• Value

○ Company one, neutral: 1 ○ Company two, high interest: 2

• Pay

○ Company one, average: 1 ○ Company two, higher: 2

Act Utilitarian Evaluation

• Pay Type

○ Company one, dollars, physical and digital: 2 ○ Company two, ethereum, only digital: 0.5

• Monetary Risk

○ Company one, safe: 1 ○ Company two, risky: 0.5

• Summary

○ Company one: 1 x 1 x 2 x 1 = 2 ○ Company two: 2 x 2 x 0.5 x 0.5 = 1 ○ Bob made the wrong decision

What if Everyone Switches to Cryptocurrency?

My Judgement

• Cryptocurrency is too new
• People are not well educated on cryptocurrency
• Money is practically already digital
• Has potential in the future

Questions?