Persuasive Essay- Cryptocurrency Replacing Traditional Currency

Persuasive Essay- Cryptocurrency Replacing Traditional Currency

Introduction

Currency is what makes the world go round; however, sometimes, the currency America uses becomes less useful because of the economy. Cryptocurrency gives an alternative to this issue. Currency, in whatever form it is used worldwide, people obtain goods and services through transactions or exchanges. Traditional currency was dominant in transactions and faced numerous fluctuations due to the ever-changing economy. The introduction of cryptocurrency provided an alternative currency that people could use, presenting its pros and cons at the same time. For instance, crypto helps fight against inflation and gives its users more freedom with their currency (Choi & Shin, 2022, p.2). This is one of the advantages crypto has over traditional currency. Consistently, cryptocurrency should replace traditional currency because it creates a cashless market, provides transactional freedom, and presents protection from inflation.

Cashless Markets Creation

Cryptocurrency is a fascinating way to obtain a cashless market in today’s world. According to Nemickienė (2019), cryptocurrency provides financial freedom from traditional currency due to its characteristic of being cashless (p.130). Subsequently, the world is already moving in the direction of a cashless market; with the digital age, many businesses are going to self-service, where everything is done online. Nemickienė (2019) states that “payment is an overt disengagement of the control of banks and governments over the monetary transactions of citizens” (p.130), illustrating that middle parties are absent during self-service using crypto, increasing people’s freedom. Additionally, there are so many apps now where one can link their bank account and send money via online transactions. The online trading platforms attributed to technological advancements have reduced face-to-face transactions (Fabris, 2022, p.74). Further, the COVID-19 pandemic has led to fundamental changes in how people live and work, but it has also brought about numerous social disruptions and impacts on all industries. One of the most significant changes was the growth of business digitalization in all segments, and increased digitalization means a growing number of users  (Fabris, 2022, p.74). The pandemic pointed out the flaws in the economy. With many businesses undergoing losses and minimal direct contact, online interactions prevailed in societies worldwide, presenting a solution to the then-prevailing challenge. These interactions were illustrated in remote work, schooling, and even trading through cashless markets, some of which are being applied to date. For instance, in the U.K., tenants were allowed to pay via bitcoin, a crypto deposit, by their property developer (Nemickienė, 2019, p.132). Accordingly, with the world going to a more cashless market, people will have an abundance of freedom and options when it comes to transactions.

Transactional Freedom

Cryptocurrency provides transactional freedom for all its users. The crypto industry’s growth is helping people move from a universally controlled electronic cash system society to complete financial freedom. Traditional currency gives power to governments and banks to oversee transactions, creating a third party in transactions in addition to transaction charges. In contrast, crypto provides anonymity and removes third parties from transactions (Nemickienė, 2019, p.130). subsequently, this gives transactional freedom as the only transaction record is stored in blockchain technology, a database that promotes decentralization. Furthermore, private individuals, corporations, and people can handle their money without all-seeing intermediaries. The intermediations are absent due to the crypto characteristic of third parties’ absence. People and businesses can then transact freely without the fear of intermediaries, obtaining transactional freedom. Additionally, money reveals what kind of society it is, giving it power and confidence, and then society gives different meanings to faceless money. The fashion for crypto entered the artistic layers, with artists creating songs about crypto (Nemickienė, 2019, p.131). Therefore, along with giving users a plethora of freedom within transactions, it also protects against inflation, which has caused the American dollar to decrease in value steadily.

Inflation Protection

Cryptocurrency presents a form of inflation protection. With inflation ever growing in today’s world each year, it seems to make the U.S. dollar less valuable than it was before. Inflation is caused by numerous factors, including government policies and measures (Choi & Shin, 2022, p.1). Thankfully, cryptocurrency does not work the same as the traditional currency, the U.S. dollar; it can hedge inflation. This is because “Bitcoin appreciates against positive inflation and inflation expectation shocks, suggesting its inflation-hedging property” (Choi & Shin, 2022, p.2). Bitcoin remains consistent despite variables such as changes in financial assets, including bonds. In contrast, the traditional currency is prone to inflation. Thus, with the growing uncertainty of inflation and how much the U.S. dollar will be worth, America needs to find a solution, and cryptocurrency may be just that.

Conclusion

In conclusion, transactional freedom presents protection from inflation, and a cashless market presents cryptocurrency as a smart alternative to traditional currency. Cryptocurrency is the future, allowing people the freedom to do endless cashless transactions and providing relief on inflation without following the global standard economy. Transactional freedom is attributed to the absence of third parties that would oversee all transactions. The relief from inflations stems from its property of inflation hedging, whereby changes in the economy would not affect crypto as it remains consistent. The cashless market provides an indirect payment option without face-to-face interaction while providing both transactional freedom and inflation protection. All these are pros crypto has over traditional currency, illustrating why the change is advantageous. The government has had a very strict and controlled environment for currency ever since it was formed, and this is how people can take back control and make a new world where everyone has freedom and opportunities with currency.

References

Choi, S., & Shin, J. (2022). Bitcoin: An inflation hedge but not a safe haven. Finance Research Letters, 46(Part B). https://doi-org.lopes.idm.oclc.org/10.1016/j.frl.2021.102379

Fabris Nikola. (2022). Impact of Covid-19 Pandemic on Financial Innovation, Cashless Society, and Cyber Risk. ECONOMICS, 10(1), 73–86. https://doi-org.lopes.idm.oclc.org/10.2478/eoik-2022-0002

Nemickienė, Ž. (2019). The Phenomenon of Cryptocurrency from Diverse Perspectives. Mokslo Taikomieji Tyrimai Lietuvos Kolegijose, 15, 130–135.

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Assignment Directions:

Use the Persuasive Essay Outline on the next page to outline your persuasive essay by completing the following:

Use the feedback you received from your instructor to revise your thesis statement.

Write your thesis as a complete sentence (as you would in your essay) in the “Thesis Sentence” section under the Introductory Paragraph heading in the outline below.

Create a topic sentence for each of the three paragraphs that comprise the body of your essay.

Record the topic sentences in each of the “Topic Sentence” sections under the “Support for Thesis” headings in the outline below.

Your topic sentences should be persuasive in nature and support your thesis.

Write at least three details for each topic sentence.

These details should support the topic sentence.

Remember to include at least one in-text citation for each supporting paragraph.

Paraphrasing is preferred, use direct quotes minimally (0-3 direct quotes for the entire document. Each 40 or less words in length).

Write a concluding sentence under the “Conclusion” heading in the outline below.

Your concluding sentence should be your thesis restated in different words.

Make sure to complete the reference portion of the outline.