CONCERNS ABOUT CRYPTOCURRENCY

As cryptocurrency gains popularity, questions arise about its implementation and effects. Major companies and even legislation have been slow to accept cryptocurrencies due to valid concerns. 

Dara Khosrowshahi, CEO of Uber, says that Uber will absolutely accept bitcoin as payment in the future, but they still currently have some concerns. Khosrowshahi says there are a few obstacles that still need to be sorted out, which include the environmental impact of cryptocurrency mining and the high transaction fees. 

Many companies aside from Uber have been reluctant to incorporate cryptocurrency into their systems. Companies fear that the application of virtual currencies could cause more harm than good. Transactions using these currencies are torturously slow, deeming them unrealistic to be used in daily transactions. When using crypto for transactions, there is no consumer protection, meaning that if a person's virtual currency is stolen, it cannot be recovered. Another factor preventing this currency from being incorporated into businesses is the amount of energy consumption one bitcoin transaction requires. One transaction might consume more energy than an entire household uses in a month. 

Additionally, the government has concerns about the overall adoption of cryptocurrency. Similar to the restriction on members of Congress trading stocks, there is concern in relation to members of Congress trading in digital currency. There are several bills that propose banning members of Congress from trading cryptocurrencies in order to prevent biases or conflicts of interest. The Warren Daines Bill, for example, would ban members of Congress from owning or trading any virtual currency and require the selling of any currency currently held. Another bill, the Ossoff-Kelly Bill, would ban members of Congress from trading securities and commodities, which would likely include cryptocurrencies. Unlike the Warren-Daines bill, the Ossoff-Kelly Bill would permit Senators to put their assets in a blind trust while in office, and then take control of them afterward, rather than requiring them to sell off the assets altogether.

As cryptocurrency increases in popularity, the concerns from large companies and the government increase as well. As this new form of money gains acceptance, these concerns and problems can be resolved, leading to a new age of digital currency. 

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Sources:

1. Barrabi, Thomas. “Uber will ‘absolutely’ accept bitcoin as payment in the future, CEO says.” The New York Post, February 11 2022, nypost.com/2022/02/11/uber-will-absolutely-accept-bitcoin-as-payment-in-the-future-ceo-says/ 

2. Wayt, Theo. “Congress stock trading ban could also cover cryptocurrencies.” The New York Post, February 11 2022, nypost.com/2022/02/11/congress-stock-trading-ban-could-also-cover-cryptocurrencies-sources/