Ethical Concerns Regarding Cryptocurrency in 2023

After the collapse of FTX, the crypto trading app, it’s been difficult for passive investors to judge cryptocurrencies based on “ethical capitalism” and “socially-responsible investing.” According to sources, the rapid cryptocurrency market is about to hit a valuation of $1.5 trillion by the end of 2022. The purpose is to create a decentralized network of transactions without involving the bank. Cryptocurrencies are not transparent with the whole data highly encrypted.

Ethical Concerns raised

  1.  In regards, cryptocurrencies are not considered ethical due to their volatile nature. Even though it has highly secure encryption, it is still a “slave” to market manipulation. Crypto doesn’t have an institution that provides financial security and minimal resistance in the back end. It is never safe and ethically responsible to invest in such a market. Betting on the price itself is not ethical due to the nature of making “easy money” without any effort or skill.
  2. According to George Calhoun, a Quantitative Finance Program Director at Stevens Inst. of Technology, Crypto is a dazzle of hope and fears. The hope side of the debate is enthusiastic, even rapturous, at the prospect of a great and wonderful metamorphosis.People are investing and more involved with the hope for the future with its incredible cryptography and encryption, that may be useful in the future. Good intentions, although bad actors.
  3. Through FTX, we have realized how easy it is to manipulate the crypto market and how that can affect individual investors. It is also that cryptocurrency has given access to “digital criminals” to do “illegal activities from the dark web. “Decentralization of currency” seems beautiful in many ways, but sometimes you may never know.
Concerning risks about cryptocurrency from Bre Hamilton, a Public Records Product Specialist, Thomson Reuters
Thomson Reuters ‘Risks To Crypto Consumers’

George’s main worry is that the creation of Orwellian repressive systems could be aided by cryptography (“…many of these technologies could be co-opted by authoritarian governments, or giant businesses, to accrue even more control… [and] subverted toward a much darker place”). For example, China—

  • has leveraged the traceability and immutability offered by blockchain technology in the field of policing.
  • has explored the use of blockchain for the dissemination of information and, in some instances, propaganda.
  • the government is already using blockchain to gather evidence against dissidents online.

The Federal Trade Commision has reported a loss of nearly $1 billion since the start of 2021, the below chart by FTC gives you a brief idea about the “fraud losses”.

from a research done by the Federal Trade Commision

To conclude:

The innovation within crypto and blockchain technology may be appreciated, but the flaws go as deep as the ocean. To invest in crypto right now wouldn’t be “conscious” due to its market volatility and easy manipulation, but at the same time, it’s the right time to invest in blockchain technology with all the “social issues” in mind.

Read more about crypto at:

Thinking of Investing in Crypto in 2023? Here are 5 Facts to Consider Before Investing