What is cryptocurrency? According to Coursera, it is a digital currency that is recorded using blockchain technology, rather than a bank. The blockchain technology acts as a ledger, keeping track of who owns what. Since every transaction is recorded and encrypted as a block, this means that the “data stored on a blockchain cannot be deleted or modified without consensus of a network” (Builtin). This means that it is much harder to counterfeit and each transaction remains secure. Since cryptocurrency enjoys benefits such as accessibility, low transaction costs and fast transaction speed, it has increased in popularity in recent years.
With the election of President Trump, cryptocurrency has only continued to rise. Trump has long shown his support for cryptocurrency, with his administration working to create a “Crypto Strategic Reserve” (AP News). Trump has his own meme coin, which has accumulated a high value of its own, soaring to “as much as $20 billion in value” (USA Today).
Recently, Senate Democrats blocked a bill called the GENIUS Act, which aimed to regulate US cryptocurrency. It was intended to create a stablecoin and tie it to the value of the dollar. The main reason cited for voting against the bill was that the Democrats were concerned that President Trump was too involved in the industry (MSN).
According to MSN, Democratic Senator Elizabeth Warren fears it could damage the US economy and cause taxpayers to pay the damages. Yet, despite this setback, the bill could continue to move forward if a deal is made. Senator Mark Warner states he remains “fully committed to getting this right” (MSN).
No one knows what the future of cryptocurrency looks like, but in recent times, despite this initial setback, cryptocurrency will continue to grow.
