Virtual Currencies- The looming danger

The virtual world is expanding so vast that it may surpass the real world in terms of magnitude and dimensions. Every spectrum of society can now be seen replicating itself in the virtual world. This is more pronounced in an economic scenario whereby millions of dollars are being transacted online from one part of the world to another instantly. The phenomenon is not restricted to the developed world, rather, the emerging nations India, experiencing the trading in terms of the electronic representation of the monetary value. According to an estimate, about 8 million investors holding about 100 billion rupees ($1.4 billion) in such types of virtual currencies.

The economic world is getting more and more interdependent as the basic economic principle of supply and demand has to hold. Virtual currencies are the offshoots of such interdependence. But the point that needs to comprehend is the pace of such inter-dependency. This is a widely known fact that virtual currencies like cryptocurrencies are unregulated. Therefore, there is a high probability that virtual transactions may amount to misuse and misappropriation of virtual money.

As the world is running towards the stage, where artificial intelligence is gaining strength, the emergence and the appearance of such virtual phenomenon may leave the world in imperil situation. Convenience, as its one of the most important advantages, may not stands and defends against the series of drawbacks that it holds. Even the father of economics, Adam Smith did not favor the use of any virtual phenomenon and was most inclined towards the usage of the paper currency.

Our world is the world that is characterized by the marked by inequality and unevenness in almost every sphere of the human domain. A phenomenon like virtual currencies is not favorable and inappropriate in the present scenario.

Of course, the usage of virtual currencies is imperative for the growth of the world in general and the growth of a nation in particular, but the time is not just appropriate for practicing such a phenomenon on such a vast scale. the catch-up effect must precede the development of the virtual world,

About the author

vipal

My name is Vipal Bhagat, going to be doctorate in applied economics. My aim is to analyse and interpret the current economic happenings around us, according to the core and basic principles of economics.

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