Cryptocurrencies in sustainable development goals--(ii)

This will be the second part of my article on sustainable development goals and cryptocurrencies role on it and how it turns out, on my previous article I discussed and showed at great length ways cryptocurrencies contribute in sustainable development goals which are all too clear and then leaving the challenges of cryptocurrencies in this sustainable development goals and I had mentioned that I will discuss this at a later time so we will get a clearer picture of the challenges cryptocurrencies face in sustainable development goals.

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Challenges of cryptocurrencies in sustainable development goals

One of the bad effect of cryptocurrencies to sustainable development goals comes from the impact of a popular consensus mechanism that's the proof of work consensus mechanism, that's the consensus mechanism of the very first cryptocurrencies bitcoin and this actually hinders sustainable development goals. In proof of work consensus mechanism alot of energy and computational power is often required to mine coins which also leads to the release of harmful carbon on the environment polluting the atmosphere and making the environment unsafe for human inhabitation and this is clearly in stark contrast to the goals of sustainable development so in this effect cryptocurrencies face a major challenge.

Also it's all true that cryptocurrencies try to make everyone be involved in the global finance by bringing in even the unbanked population which is all nice and good but most of the masses faces a major hindrance in that they are not able to deal with the level of cryptocurrency technogy, due to maybe ignorance or lack of education or maybe because there is no provision for such education and ofcourse how can people use what they don't know. This becomes a problem as many people in third world country would be left out due to the fact they are not able to deal with the level of technogy that cryptocurrencies brings and the lack access infact to this technology and proper education this thus hinders the widespread adoption of cryptocurrencies which it sims to achieve making it harder for everyone to gain financial inclusion in a complete sense.

Another issue here is the fact that there aren't yet a clear regulations for cryptocurrencies and this is a serious challenge in sustainable development goals because people may shy away from Investment in cryptocurrencies because there is no clear regulation and as such there is no guarantee protection for them for their invested funds like what is available in the tradtional financial setting so lack of any real legal frame work or regulations creates financial instability thereby impacting sustainable development goals rather too negatively.

The cryptocurrencies market is one of the most unstable market we have today in terms of price action. The market is speculative, it is volatile, it is unstable. Most of the institutions want a form of stable investment and feel cryptocurrencies can't offer them that and for that reason they stay away from cryptocurrency investment and view it as an unsafe and unsure investment scheme and this instability and speculative nature of cryptocurrencies hinders mainstream adoption and this means it lacks the essential ingredients needed to contribute to a quick economic growth, which is it lacks stability. This no doubt is one of the challenges of cryptocurrencies in sustainable development goals.

Also cryptocurrencies has often become the perfect medium for people who involves in all forms of illegal activities to launder their money in a very seamless manner and that's because of the privacy it ensures for it's users many people with nefarious purpose have exploited this in carrying out their illicit activities. Thieves, politicians, drug lords, mercenaries, human traffickers just to name a few have often used cryptocurrencies in hiding and safekeeping the money earned from such inhumane and lawless craft which greatly hinders any sustainable development growth which is a serious challenge that ought to be tackled.

Conclusion

Indeed for their to exist a balanced and well established cryptocurrencies roles in sustainable development goals that's for the implementation of cryptocurrencies in this aspect to be complete then alot of factors has to align, first of this issues has to be sorted out as best as they can especially when it comes to regulation, is important for an established clear regulation to be in place which will further help the technogical advancement of cryptocurrencies in sustainable development goals and further help strengthen bond between industries which all play to the advantage of the success.