Last time, we discussed what Cryptocurrency is and how it works. We know that Cryptocurrency can be complicated since it is so new. But in this episode, we will take a look at some popular Christian arguments against Cryptocurrency, and see if they hold any weight. We are not necessarily arguing FOR or AGAINST crypto in this episode, but merely examining popular arguments we found online and in the real world.
So let’s dive in!
What are some Christian arguments against cryptocurrency?
- Investing in Cryptos is the same thing as gambling
- Our response: Not really. One can gamble with anything. Just because gambling is possible does not mean that everyone using it gambles. Investing in the stock market, for instance, could be turned into a method of gambling (i.e. WallStreetBets group on reddit). Just because some gamble with stocks, doesn’t mean that everyone does. Nor does it mean that no one should be investing in the markets. This is a really poor argument. See our episode on Investing vs. Gambling.
- Cryptos are used by criminals
- Our response: Sure, but so is cash and credit. Don’t throw the baby out with bath water. This is similar to the gambling argument. Just because some are bad actors doesn’t mean that everyone is a bad actor. The percentage of bad actors is grossly overstated. In fact, because the blockchain is public record, governing authorities have been able to trace transfers and arrest many criminal precisely because of the use of cryptos.
- Cryptos are fraught with fraud – the people who start the crypto may run away with your money.
- Our response: Yes, this has happened. The popular Netflix series, Squid Game had an issue where a crypto was created to capitalize on the hype and popularity of the show. Turned out to be a scam. But remember, cryptos are unregulated. This means that there are bad actors who can try to take advantage of the public’s general naïveté. Also, just because the government enacts regulations doesn’t prevent fraud. Sadly, even though investing is highly regulated, there are still plenty of examples of bad actors. Moral of the story: buyer beware. Do your due diligence. If it sounds too good to be true, it probably is.
If it sounds too good to be true, it probably is.
- Cryptos are a bubble.
- Our response: Maybe, maybe not. This is why one should never put all their money in something like this. There is risk. With the start of any new thing, it is common for there to be bubble periods. There was a bubble in railroads back in the 1800s, Cars in the early 1900s, the internet and tech companies in the early 2000s. Just because it’s a bubble doesn’t mean that there is no long term potential for value. This is why avoiding greed and speculation is important. One should not put more into this asset than what one is willing to lose. There is an argument to be made that, while prices may be elevated, there is long term value in what Cryptos, like Bitcoin, offer the world in terms of the future of money.
- Cryptos are extremely volatile.
- Our response: Yes, don’t use money that you can’t afford to lose. It is thought that as more and more people begin to use cryptocurrencies, like Bitcoin, the less volatile it may become. Since there is a fixed number to total possible bitcoins, the more people using them, the higher the price is likely to go. There is no guarantee that their expectations will become reality. The stock market has a lot of people using it but it is in some ways more volatile today than in the past. I think that volatility should be expected as a normal part of cryptos. Buyer beware!
- Cryptos are not real assets. They pay no dividends and do not make the world a better place.
- Our response: As an investment guy, this has to be one of the weakest arguments that I’ve seen. Gold doesn’t pay a dividend nor does it make the world better and yet no one would argue that it’s an asset. This argument doesn’t really hold water. However, If they mean that it’s not a real (physical) thing that you can’t put your hands on, a Bitcoin, they would be right. It is virtual! It’s as virtual as the photos you take on your phone. They are just 1’s and 0’s on a hard drive.
- Cryptos, especially bitcoin, are energy-intensive and may harm the planet.
- Our response: It really depends on your point of view. True, cryptos require computing power to run the blockchain. However, the resources used to power Bitcoin are a small portion of the global power demand and could be replaced by renewable energy. This actually points to a growing trend that is happening regardless of Cryptos. That is the trend of growing power consumption of computers. All the servers running the internet and data (server) farms is an ever-increasing thing. Even if Cryptos ended tomorrow, the need to find more renewable energy sources for our growing reliance on computers will need to be addressed.
If you are planning on using Bitcoin or any other cryptocurrency, it would be wise to consult a seasoned Financial Advisor that can help you figure out if it is the right decision for you. Remember, Scripture encourages us to build wealth in a steady, sustainable way. It is important to have a proper understanding of what you are getting involved in, and how it can impact your portfolio over time. At the end of the day, use wisdom, not emotion, to drive your investment decisions.
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