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?