Crypto Crash
Critical Analysis
According to the data from the chart above, as of Thursday, May 12 at 6:30 PM, what percent of its value had Bitcoin lost over the past year?
According to the data from the chart above, as of Thursday, May 12 at 6:30 PM, which cryptocurrency had lost the largest percentage of its value over the past year?
According to the data from the chart above, as of Thursday, May 12 at 6:30 PM, how much was one Dogecoin worth?
Part of the reason Satoshi Nakamoto created the cryptocurrency Bitcoin, after the global financial crisis, was that the blockchain technology it is built upon, was designed to be hard for governments to control. What are some advantages of a currency that is beyond government control?
In the United States, compared with the traditional financial system, crypto is very lightly regulated. Certain centralized crypto exchanges, such as Coinbase, are required to register as money transmitters and follow laws like the Bank Secrecy Act, which requires them to collect certain information about their customers. At the same time the Internal Revenue Service has not issued clear guidance about how certain crypto investments should be taxed. Some countries have passed more stringent regulations, and others, like China, have banned cryptocurrency trading entirely. Make a claim about how heavily the United States should regulate cryptocurrency.
Senator Rand Paul of Kentucky on Thursday single-handedly delayed a bipartisan effort to quickly send $40 billion in aid to Ukraine, which Congress had tried to fast-track amid the escalating brutality of Russia’s war. The Senate needed unanimous consent to waive procedural hurdles and approve the humanitarian and military aid package, which the House passed 368-to-57 on Tuesday. Mr. Paul, a Republican and a libertarian who generally opposes U.S. spending on foreign aid, objected, halting what had been an extraordinary effort to rapidly shepherd the largest foreign aid package through Congress in at least two decades. One reason that cryptocurrency is so lightly regulated is that it is only about 13 years old, and making new rules especially on such a new innovation takes time. Does the United States political system make it easy to pass legislation and make regulations quickly?
Although Cryptocurrency had a terrible year, and a horrible week, how has cryptocurrency’s value changed over the past year* and over the past decade or so?*
In America, we have already seen how crypto can scramble the usual partisan allegiances. Former President Donald J. Trump and Senator Elizabeth Warren, the Democrat from Massachusetts, are united in crypto skepticism, for example, while Senator Ted Cruz, Republican from Texas, is in the same bullish camp as Senator Ron Wyden, the Democrat from Oregon. Why do you think crypto crosses over partisan and ideological lines?
True story: In 2010, a guy bought two Papa John’s pizzas using Bitcoin that was worth about $40 at the time, but would be worth roughly $400 million today. Explain how that story could be true.
Imagine that you had one Bitcoin right now. Explain whether you would sell it or hold onto it.
Learning Extension
Read The Latecomer’s guide to Crypto to learn more about how cryptocurrency works.
Action Extension
Contact your U.S. Senator and let them know what you think about regulating cryptocurrency.
