Page 36
Crypto
The Metaverse Mining Movement: the Legal Ramifications Surrounding this Modern Digital Phenomenon By Hannah Hendry, JF Law In modern times, the concept of cryptocurrencies has become increasingly popular. It is paving the way for a new digital era in our society. At the touch of a button, people have become millionaires overnight. It could be perceived as the modern equivalent of discovering oil in the Middle East or gold in Alaska. In the contemporary world, mining for oil has been challenged by mining for coins. Bitcoin mining emits 37 megatons of carbon dioxide into the atmosphere annually. Cryptocurrency Cryptocurrencies will have significant impacts on our economy and future financial situation. Cryptocurrency is a digital currency in which the transactions are verified. These transactions are recorded onto a system called a blockchain. Bitcoin is the most popular coin, the chain that put cryptocurrency front and centre. It is a powerhouse that commanded the world’s attention, unveiling it as a serious rival to fiat currency. Fiat currency is a government-issued currency that is not substantiated by a commodity such as gold. The introduction of blockchain to the internet created a single identity online. It encompasses all of our data together. This increases accountability, accessibility and security. This altered how we manage our space on the internet. In 2008, the global financial crisis collapsed our economies. The tooth fairy struggled to finance our tooth collections, leaving us sleeping on pillows of lead instead of secure financial gains. With no gold for our tooth fillings, no coal for our fires, a dire situation arose. However, through the ashes, Bitcoin emerged as a modern day Wall Street proposition built on a blockchain. Cryptocurrencies do not suffer the same repercussions that fiat currencies and stocks endure through periods of great economic stress. Nevertheless, cryptocurrency also encounters hardships. Are there any laws to protect people buying and financing crypto? This new area in our society has the potential to revolutionise how we operate our banking and transfer money, how we will pay for produce and how the internet is reconstructed. PC: The Pros and The Cons Issues surrounding cryptocurrencies and the legal hemisphere are the frequent occurrences of fraud. In January of this year, hackers stole non-fungible tokens (NFTs), valued at $2.2 million from New York art collector Todd Kramer. The following month at OpenSea, the world’s biggest NFT market, approximately $1.7 million worth of NFTs were stolen. These incidents have created a slump in the number of people buying and selling NFTs. These fraudulent occurrences have impacted the virtual trading world, with trading on OpenSea decreasing by 80 per cent in March. Cryptocurrency is undetectable. If someone steals your currency, you will not be able to find it. There are no laws in place to protect a person against this type of fraud or theft. These scams create uncertainties for people to adapt to this modern currency. Additionally, mainstream media influencers can have an impact on the crypto market. Economist Nouriel Roubini accused Elon Musk of market manipulation. In February 2021, Musk’s company, Tesla, purchased $1.5 billion in Bitcoin. Roubini stated that Musk used his Twitter platform to inflate prices in Tesla’s favour,
