Cryptocurrencies: what are they good for? Well...a lot
Recently, the Senate Banking committee held a hearing called “Cryptocurrencies: what are they good for”, amid ongoing efforts by some lawmakers to regulate the cryptocurrency industry.
While regulation is inevitable, and some regulation could be a good thing, some lawmakers have doubled down and taken more of a scorched earth approach to regulating crypto, which is way off the mark. During the hearing, one prominent Senator, Elizabeth Warren, remarked that crypto developers are a “shadowy, faceless group of super coders.”
There are certainly criticisms when it comes to cryptocurrencies, as there are for any technology or financial instrument, but saying it is good for nothing is a ridiculous over exaggeration that ignores all the amazing good being done in the crypto and blockchain space.
So, to counter the narrative that crypto is good for nothing and should be regulated out of existence, here is a list of seven ways that crypto and blockchain are doing good in the world. Now, you may be asking, what does blockchain have to do with this, as the attack is on crypto, not blockchain. Well, in many cases, one wouldn’t exist without the other. The Ethereum network wouldn’t exist without Ether, just as the Cardano network wouldn’t exist without ADA. Although there are standalone blockchain projects, crypto and blockchain are so invariably linked that it makes sense to highlight the good being done by both.
So, without further ado, here are seven ways that crypto and blockchain are doing good in the world:
Hundreds of charities that support a number of causes including environmental efforts, emergency aid, international development, human rights, gender equality, and more, accept donations of cryptocurrencies to open their fundraising efforts to a broader market, and diversify their revenue. I highlight the work of some of these amazing charities in my Crypto Charities blog series.
Billions in Bitcoin, Ether, and other currencies have been donated to worthy causes including COVID-19 relief in India, where Vitalik Buterin alone donated $1 billion in crypto.
NFTs are enabling artists and content creators to cut out the middleman and bring their works directly to the market, enabling them to keep a greater share of the revenue from their work while providing them with an effective and secure way to authenticate it.
UNICEF has launched a cryptocurrency fund to support open-source projects around the world that aim to improve the lives of children and young people. There have been many amazing projects already supported through this fund that are using blockchain technology in creative ways to improve lives.
Despite concerns about the environmental impacts of cryptocurrencies, many projects are currently underway that use crypto and blockchain to help fight the climate crisis. In fact, the United Nations has officially recognized the power of these tools to fight climate change, stating that “cryptocurrencies and the technology that powers them (blockchain) can play an important role in sustainable development, and actually improving our stewardship of the environment.”
The efficient, immutable, and transparent nature of blockchains are being used to support a number of worthy causes including to collect data related to the Opioid epidemic, to verify the removal of plastic waste from the ocean, to combat censorship, and much, much, more.
A number of high-impact projects are looking at ways that blockchain and crypto can be used to provide virtual banking services for vulnerable populations, including refugees. One example of this is a project by Leaf Global Fintech, which aims to provide an easy to access virtual bank to refugees built on blockchain technology.
This is just a brief list which highlights only a few of the ways that crypto and blockchain are being used to improve the world. The reality is, there are too many examples to include in one blog post alone. There are hundreds, if not thousands, of projects all over the world that are working tirelessly to use this technology to address real and urgent problems faced by humanity.
While regulation may be necessary, and some regulation could be a good thing, the scorched earth approach to regulation being taken by some lawmakers is a losing strategy, and neglects all the good being done in the space.
What are some other ways that crypto and blockchain are being used for good? What are your thoughts on crypto regulation? Tweet us at @Crypto_Altruism, we’d love to hear from you!
