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Is Crypto the Future of Currency?

Jacob Edlin, Staff Reporter

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Cryptocurrency. Sounds futuristic, right? It may someday be the form of universal currency.

Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. It is not regulated by any government.  

Although it is impossible to say, I believe Bitcoin will soon fall to the wayside and be replaced by alt coins, which allow more instantaneous transactions and lower transaction fees. The creators of these alt coins took the idea of Bitcoin and essentially improved it, which I believe will make Bitcoin less popular, and therefore a decrease in value is likely.”

— Trinity senior Jake Sedgewick

If investing money or making money grabs your interest, then recent events with a large name brand of cryptocurrency, Bitcoin, must have gotten your attention. Bitcoin has become somewhat of a household name and the poster for cryptocurrency.

Trinity business teacher Mr. Pete Schroeder said, “Bitcoin is kind of the original cryptocurrency. Its origin is quite mysterious; no one has yet to claim credit. They started out with a software called BlockChain. It became the vehicle in which folks could pay each other.”

With all the buzz around the name and the company having its ups and downs, Bitcoin became very volatile, peaking Schroeder’s interest. He felt as if he wasn’t confident enough in his understanding of Bitcoin to throw down an investment on it.   

                                                                          photo by Jacob Anonson
Members of Trinity’s Bitcoin Club, led by Mr. Jimmy Backes, discuss the currency.

He had more confidence in BlockChain, which seemed like a more versatile option in its ability to push a more forward movement of online banking.

Schroeder said, “I threw an investment on that, doing well with one stock and not as well on another.”

Schroeder said Bitcoin has increased awareness of cryptocurrency but was too risky with its value fluctuating at random intervals. He also pointed to the correlation that most things China bans generally increase in value.

He said, “China banned Facebook and its value grew; they banned Amazon and it grew, so we will see what happens (with Bitcoin).”

Trinity senior Jake Sedgewick took a particular interest in cryptocurrency and has made a good sum of money. He decided to invest in the altcoin brands, such as Litecoin and Ripple, which are other forms of cryptocurrency. Sedgewick said, “They have lower transaction rates, so I have only utilized Bitcoin to convert it into other forms of currency.”

Sedgewick has accrued $600 in cash, and his stock in Ripple has gone up 50 percent from his purchase, but he has yet to cash in.

According to Sedgewick, the only governmental regulations on Bitcoin are for users to report capital gains on taxes if the value increases and they sell it for profit.

Sedgewick thinks Bitcoin will fall to other forms of cryptocurrency. He said, “Although it is impossible to say, I believe Bitcoin will soon fall to the wayside and be replaced by alt coins, which allow more instantaneous transactions and lower transaction fees. The creators of these alt coins took the idea of Bitcoin and essentially improved it, which I believe will make Bitcoin less popular, and therefore a decrease in value is likely.”

When asked about the future of crytpos, Sedgewick said, “It’s a great idea. It is less susceptible to massive inflation, and it allows people to make international transactions without converting fiat currencies (money made only by law).”

A club has also sprung up at Trinity, the Bitcoin Club, moderated by Mr. Jimmy Backes. Backes said the point of the club is to inform people of this current event and of cryptos in general, helping people make informed decisions on the currency.

Backes doesn’t see Bitcoin making an impact on our day-to-day lives at this time.  It needs to be legitimized by stable governments. He doesn’t know of any big stores in America that take Bitcoin as payment. Backes said, “I know even the Cryptocurrency Convention couldn’t take cryptocurrency as payment, as it is still very early on in its stages and is difficult for a vendor-customer transaction.”

Feeling lucky, yet? Talk to Sedgewick or Schroeder — or join the Bitcoin Club.

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Is Crypto the Future of Currency?