Cryptocurrency GD Topic: Is Cryptocurrency for Real or a Lottery?
In this series of articles, we discuss key GD topics for MBA admission from different approaches. Cryptocurrency is one such topic, that divides its fans and detractors alike. By Aritro Dasgupta
This article was first published on November 1, 2022.
Cryptocurrency GD topics
Over the last few years, cryptocurrency fever has gripped much of the world. What was once a fringe idea, has now become mainstream. Those dabbling in cryptocurrency may be found from across all walks of life, from across sections and communities. Some have made a profitable killing, while many have suffered too. But what exactly does cryptocurrency entail? That is something that not many understand, but an MBA aspirant needs to be well- versed about. This could be one of the many popular topics that students could be asked to debate on, in case they make it all the way to the Group Discussion (GD) round.
In order to ace this round, an MBA aspirant needs to possess well-rounded information on several GD topics. Not only information and opinion on these topics, the students need to have the ability to debate from either side of the debate for such topics. In this series of articles, we discuss key GD topics from different approaches. Cryptocurrency is one such topic, that divides its fans and detractors alike. Some say, it is merely a lottery. Even those who did well often say so. Others say that it is real currency. Whenever a topic on cryptocurrency arises, students must be careful to make the distinction between them and the Central Bank Digital Currencies (CBDC). While the latter are recognized as legal tender, by the respective central banks of the countries, the former is a private fund, usually non- recognized by any regulator.
Let us understand some of the key pros and cons of crypto-currencies and other digital ones.
Cryptocurrency Pros
Some points that support the theory of crypto-currencies being there for real and valuable are as follows:
- Millions have made substantial profits on these.
- Paired with CBDCs, they can be extremely useful during periods of economic crisis, as they can be generated more easily.
- If there is hyper- inflation, then these may help in mitigating the disaster, by taking away key currency off the mainstream markets, and parking them in this digital world.
- Several celebrities have bought such cryptocurrencies and some have even issued them in their names.
- Some crypto ATMs have also been set up, in order to facilitate transactions more smoothly.
- There now exist several rupee- denominated cryptocurrencies as well, thus making it easier for Indians to transact in them.
Cryptocurrency Cons
Let us now study some ideas that go against this grain of thought, and signify the reliance on luck for them:
- While many made a lot of money in the initial phase, several more have also struggled lately, losing precious money.
- While CBDCs can certainly help in mitigating financial disasters, the unregulated nature of cryptocurrencies like bitcoins, makes this more complicated a process.
- Instead of actually helping mitigate a disaster, these cryptos often end up helping some in the top wealth bracket, towards money laundering activities.
- The concept also makes it difficult for most to understand.
- The energy levels required to generate bitcoins and others, makes it environmentally unsustainable, especially at a time, when a lot of global business and political discussion, revolves around climate change and reducing the ecological footprint.
- A number of exchanges that are denominated in the local currencies, may be incompatible with global exchanges, especially in the context of a global watchdog.
- While some countries may have local regulators for CBDCs, having the same for cryptos, that too across the length of international boundaries, makes it a cumbersome task.
The main understanding that we derive from the above points is that diverse viewpoints are perfectly fine, as long as the Supporting evidence is provided. Credible examples that help back up the points, need also to be drawn up. To make one’s point, citing of data released by well- known sources such as the Asian Development Bank, World Health Organization (WHO), The Week, Time, The Hindu etc. is the best way of making one’s point. Indices and ranks released by respected bodies, demonstrate a well-informed and researched justification for the points sought. It is important to not get too emotional. One does not earn extra points for screaming the loudest. Rather, one must work on the 4 Cs of Group Discussions. These are- Content, Collaboration, Communications and Clarity.
About the Author:
Aritro Dasgupta is a Teacher, Trainer and Content Writer. He has taught at several leading colleges and coaching institutes in both India and the UAE. Several of his students have finished in the top 10 of various national level exams such as CLAT, AILET and DUJAT. He is also a prolific content writer, having written for several leading publications in India, while currently, also working for one in the USA.
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