Post by account_disabled on Feb 27, 2024 2:17:13 GMT -4
Extreme volatility, coupled with more than 40 known hacks on crypto exchanges since 2012, make it too risky an asset except for those who can afford to lose what they invest. However, recent advances point to the long-term potential of using cryptocurrencies for social impact. We tell you.
According to the Green Biz portal , cryptographic technologies are being promoted as a replacement for banks, a new way to buy art, investment opportunities and also to generate changes in favor of people.
What are cryptocurrencies?
According to Fondeadora , cryptocurrency is Chinese American Phone Number List understood as “digital or virtual currency protected by cryptography”, this system makes it almost impossible to counterfeit or spend it twice. Many cryptocurrencies are decentralized networks based on blockchain technology , “a ledger distributed and enforced by a disparate network of computers.”
A defining characteristic of cryptocurrencies is that they are generally not issued by any central authority, making them theoretically immune to government interference or manipulation.
cryptocurrencies for social impact
That is, it works like an asset and its advantages include cheaper and faster money transfers and decentralized schemes that do not collapse at a single point of failure.
While the disadvantages are its price volatility, high energy consumption for mining activities and use in crimes. Despite their contradictory essence, they could contribute on the path to sustainability.
Cryptocurrencies for social impact
Although there is resistance towards cryptocurrencies, not only because of their risky nature for investors but also because of their negative impact on environmental sustainability, digital currencies could increase access to finance for the unbanked and those living under corrupt regimes. .
More than a billion people around the world do not have access to a bank account because banks' centralized systems exclude them.
The World Bank.
The above happens because it is not possible for them to prove their identity and therefore, they lack financial accessibility. Many of them live in Africa and Asia, in this sense, cryptocurrencies have allowed them to pay for items digitally and become more connected members of society.
Digital CSR practices
By balancing social benefits with environmental concerns, cryptocurrency could have the potential to create the world's first true global carbon market, as Jim Gold reports at GreenBiz . Such prospects mean that the jury is still out on whether the environment and society will be worse off or better off under this virtual scheme.
Against corruption
Remember that the rise of Bitcoin preceded the 2008 financial crisis, which fueled the desire for greater autonomy from what many saw as a corrupt banking system.
According to the Green Biz portal , cryptographic technologies are being promoted as a replacement for banks, a new way to buy art, investment opportunities and also to generate changes in favor of people.
What are cryptocurrencies?
According to Fondeadora , cryptocurrency is Chinese American Phone Number List understood as “digital or virtual currency protected by cryptography”, this system makes it almost impossible to counterfeit or spend it twice. Many cryptocurrencies are decentralized networks based on blockchain technology , “a ledger distributed and enforced by a disparate network of computers.”
A defining characteristic of cryptocurrencies is that they are generally not issued by any central authority, making them theoretically immune to government interference or manipulation.
cryptocurrencies for social impact
That is, it works like an asset and its advantages include cheaper and faster money transfers and decentralized schemes that do not collapse at a single point of failure.
While the disadvantages are its price volatility, high energy consumption for mining activities and use in crimes. Despite their contradictory essence, they could contribute on the path to sustainability.
Cryptocurrencies for social impact
Although there is resistance towards cryptocurrencies, not only because of their risky nature for investors but also because of their negative impact on environmental sustainability, digital currencies could increase access to finance for the unbanked and those living under corrupt regimes. .
More than a billion people around the world do not have access to a bank account because banks' centralized systems exclude them.
The World Bank.
The above happens because it is not possible for them to prove their identity and therefore, they lack financial accessibility. Many of them live in Africa and Asia, in this sense, cryptocurrencies have allowed them to pay for items digitally and become more connected members of society.
Digital CSR practices
By balancing social benefits with environmental concerns, cryptocurrency could have the potential to create the world's first true global carbon market, as Jim Gold reports at GreenBiz . Such prospects mean that the jury is still out on whether the environment and society will be worse off or better off under this virtual scheme.
Against corruption
Remember that the rise of Bitcoin preceded the 2008 financial crisis, which fueled the desire for greater autonomy from what many saw as a corrupt banking system.