[DEBATE CORNER] CRYPTOCURRENCY
Pizza Coin, DogeCoin, or even Rare Pepe Party.
Weirdly as it may sound, these are actual cryptocurrencies - a topic of intense debate nowadays among scholars, economists and law makers.
“There are three eras of currency: commodity based, politically based, and now, math based.” (Chris Dixon)
The origin of cryptocurrencies dates back not too long ago. In recent years, cryptocurrencies have sparked off great interest and, in some cases, great concern among international citizens. Undoubtedly, there are many controversies surrounding this rather new form of currency. It is volatile but it is said to be a “groundbreaking” invention. Nevertheless, in this case, does “groundbreaking” mean that it will leave us nowhere to stand, or it means there come new opportunities for us to develop?
Cryptocurrencies, or digital currencies, operate based on a technology called blockchain, which allows payment to be transferred from one person to another without the verification from a third party. No government or official controls cryptocurrencies. Therefore, it aims to enable, sanction as well as register digital currency transfers. Some people liken cryptocurrencies to the Internet, considering its low cost, its speed, its convenience and especially the privacy it proffers.
However, anything has its pros and cons. Imagine you yourself store some digital money on your phone or your computer, but then one day you lose it, or simply forget your password, resulting in your inability to get access to the system. Unfortunately, unlike Facebook, Twitter or any social media, this kind of network does not allow you to retrieve your money by any possible means. Additionally, you are not allowed to retrieve your money even when you transfer it to the wrong recipient. Moreover, there is the “pump and dump” scheme, in which there are groups willing to “pump” the currency value on a regular basis. This is due to the fact that cryptocurrency doesn’t “represent” real value per se. Rather, its “value” is generally agreed upon. These are the consequences of lack of regulations over cryptocurrencies.
Since the currency is new and still not recognized widely, which results in its instability and fluctuations, investing in cryptocurrencies is a risk. With that being said, cryptocurrencies surely have its own advantages and disadvantages. Without prudent regulations, this new promising technology will just become a failure, or worse, an economic catastrophe.
This year, with the rise of visual currencies in general and Bitcoin in particular, IVMUN gladly presents to you the topic of cryptocurrencies. Each country, with its own outlook, will all gather to discuss and find out the best solutions to regulating the international rise of cryptocurrencies. How will a variety of countries come round to one another’s point of view? What will be the finest approach to the ultimate goal of controlling this rising new trend? And in the end, will we be able to answer the question: “Are cryptocurrencies worth investing?”?