• Consider the ethical challenges posed in this real-world case, and explain your thoughts on the use of Bitcoin.
• Identify which one of the ethical challenges (one of the criticisms listed in bullet points or the energy consumption) provides the biggest ethical dilemma. Explain the rationale for your answer.
• From a Christian perspective, explain whether you think Bitcoin should continue to be recognized as a digital currency.

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Bitcoin: Is the Price Too High? Bitcoin, a digital currency that uses encryption to verify transfer of funds, operates completely outside of government and banking regulation. Transactions occur through a digital ledger called the Blockchain. Bitcoin must be 'mined'; this means that they are created via high powered computers solving complex mathematical equations through specialized computer software called Application Specific Integrated Circuits (ASIC). Only 21 million Bitcoin will be developed and made available to the public, after which, no further Bitcoin will be available. This complex currency was developed by the secretive 'Satoshi Nakamoto,' in response to the perceived 'failings' of governments and banks to protect their respective societies from fallout of the global financial crisis. Bitcoin value began nominally and has varied dramatically; it is a volatile currency which has been impacted by shutdowns of bitcoin exchanges and bans by certain governments. Supporters believe that cryptocurrencies such as Bitcoin can be viewed as stable compared to national currencies, which are dependent on the actions of governments and the international currency markets; cryptocurrencies may be valuable for those within nations who have excess inflation or a weak national currency. However, Bitcoin has been criticized for: ● Funding criminal activity, given the relative, but not complete, anonymity of financial transactions it affords and the fact that Bitcoin does not operate through regulated third- party payment providers such as Mastercard or Paypal; this makes it hard for law enforcement to preventatively regulate transactions Circumventing government pressure, including pressure to prevent certain transactions that governments find undesirable (i.e., funding for Wikileaks); as a result, governments cannot wield financial control over bitcoin transactions in the same way they wield it over transactions made through third party payment Potentially becoming a competitor to national currencies Operating on 'crypto proof,' rather than trust (like conventional currency); this means that Bitcoin is not backed by anything with inherent value, increasing volatility in its value, particularly as a result of speculation by investors ● Bitcoin: Is the Price Too High? Bitcoin, a digital currency that uses encryption to verify transfer of funds, operates completely outside of government and banking regulation. Transactions occur through a digital ledger called the Blockchain. Bitcoin must be 'mined'; this means that they are created via high powered computers solving complex mathematical equations through specialized computer software called Application Specific Integrated Circuits (ASIC). Only 21 million Bitcoin will be developed and made available to the public, after which, no further Bitcoin will be available. This complex currency was developed by the secretive 'Satoshi Nakamoto,' in response to the perceived 'failings' of governments and banks to protect their respective societies from fallout of the global financial crisis. Bitcoin value began nominally and has varied dramatically; it is a volatile currency which has been impacted by shutdowns of bitcoin exchanges and bans by certain governments. Supporters believe that cryptocurrencies such as Bitcoin can be viewed as stable compared to national currencies, which are dependent on the actions of governments and the international currency markets; cryptocurrencies may be valuable for those within nations who have excess inflation or a weak national currency. However, Bitcoin has been criticized for: ● Funding criminal activity, given the relative, but not complete, anonymity of financial transactions it affords and the fact that Bitcoin does not operate through regulated third- party payment providers such as Mastercard or Paypal; this makes it hard for law enforcement to preventatively regulate transactions Circumventing government pressure, including pressure to prevent certain transactions that governments find undesirable (i.e., funding for Wikileaks); as a result, governments cannot wield financial control over bitcoin transactions in the same way they wield it over transactions made through third party payment Potentially becoming a competitor to national currencies Operating on 'crypto proof,' rather than trust (like conventional currency); this means that Bitcoin is not backed by anything with inherent value, increasing volatility in its value, particularly as a result of speculation by investors ●

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Bitcoins Ethical Challenges A Critical Analysis Bitcoin a decentralized digital currency faces several ethical challenges ranging from its potential involvement in criminal activities to its significa... View the full answer