Cryptocurrency continues to take the world by storm and everyday, currencies such as Bitcoin and Ethereum earn more recognition.
Two of the most popular digital currencies in the crypto world Bitcoin and Ethereum are once again nearing all-time highs but the concept of blockchain technology has yet to be globally accepted.
According to a survey by CNBC, one in 10 people currently own or invest in cryptocurrency, making it the fourth most popular financial asset behind real estate, stocks, and mutual funds/bonds. Also, 65 per cent of those investors have started within the past year and although that growth might be unsustainable, it’s still evident that decentralized finance (DeFi) is trending upwards.
Will Thibeault, a Western student with a diverse cryptocurrency portfolio and wide knowledge of the space describes the attitude he notices towards digital currency.
“The sentiment has been pretty optimistic, especially in cases of large financial institutions,” said Thibeault. “On the same note in school, I’m being lectured by professors who believe that crypto is a net negative because of its energy.”
A study by the University of Cambridge shows that Bitcoin, the first and most popular currency, consumes about 80 terawatt-hours of electricity annually, which is roughly the same as 23 coal-fired power plants, or what is consumed by the whole country of Finland.
“Yes it is a fact that Bitcoin requires a copious amount of energy to complete its functionality, however, its potential functionality is also misunderstood and I think [if it was understood], people would have a different sentiment,” said Thibeault.
Misinformation and “fake news” is a huge matter and deserves its own conversation but Thibeault believes it is definitely a factor in adopting the concept. Another factor is its complex nature.
“Money in general is pretty taboo,” said Thibeault. “Not a lot of people like to talk about it or know enough about it and frankly it’s just not something people feel comfortable with. Add in any kind of degree of speculation on top of that or fake news, it becomes a conversation few and far between people want to have.”
Even with prices on the rise along with banks and entire countries adopting the currency like El Salvador, decentralized finance still has a long way to go before becoming the norm.
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