Criminal Activity and Environmental Impact as Cryptocurrency Concerns

As the use of Cryptocurrencies increases, concerns increase due to their association with their negative implications. Cryptocurrency is a type of digital currency that use blockchain technology to work on a peer-to-peer basis. The nature of the blockchain means that two persons can have a transaction without exitance of a third party even if they do not trust each other. Unlike traditional currencies, Cryptocurrencies are not controlled by a central authority such as a government or central bank. This leads to social and economic implications. Negative social implications of cryptocurrencies include their use in criminal activities, heightened cybercrime, potential exacerbation of wealth inequality, insufficient consumer protections, and the exclusion of individuals without access to technology or knowledge of using technology. These factors together could deepen the social disparities. Negative Economic Implications of Cryptocurrency include environmental impact, volatility, market manipulation and tax evasion.
This letter tries to analyse two of the most important social and economic implications of cryptocurrencies: first, the role of cryptocurrency in social and economic criminal activity, and second, addressing their environmental impacts. After that strategies will be explored to address these two economic, social implications associated with cryptocurrency usage. The first approach targets the involvement of cryptocurrencies in social and economic crimes, while the second addresses the environmental impact of mining process.