The Other Side of the Coin in Cryptocurrencies and NFTs

Nowadays, it is no longer surprising to know that a large part of the capital that moves around the world is, in reality, mathematical calculations between databases of various banks (or within the same banks). This capital operates through what is known as a centralized economic system, in which banks themselves validate transactions and approve or reject them for various reasons.

To give a simple example: if I have €1,000 in the bank and want to send you €200, a computer will simply validate whether I can make this transaction. In a database field associated with my name, €200 will be subtracted from my balance, and the same amount will be added to the recipient’s balance. However, it’s important to note that, in the end, this is just a fictitious value, based on a highly developed security system (to prevent attacks) and the value assigned by governments.

But what happens when we talk about cryptocurrencies? For example, Bitcoin, Ethereum, Dogecoin... In this case, the situation is not so simple because cryptocurrencies rely on a decentralized system. This means there is no central bank controlling all transactions; instead, the users themselves validate them.

To ensure that no one can falsify a transaction, every time someone makes one, it undergoes an encryption process and is added to a block in what is known as the blockchain (or "chain of blocks," hence the name). So far, everything sounds fantastic, right?

Well, in theory, Bitcoin was created by a person (who remains anonymous to this day) with the idea that it could be a stable, secure currency, free from central bank control, and easy to use. However, like many other great inventions throughout history, it has become the complete opposite: fueling commerce on the deep web, enabling large-scale scams, and fostering uncontrolled speculation by major entrepreneurs, such as Elon Musk, among others.

Additionally, we must consider the energy consumption and CO₂ emissions generated by Bitcoin and other cryptocurrencies, which are comparable to those of some third-world countries.

First of all, it is important to note that cryptocurrency transactions are completely anonymous and legally unregulated. This fact encourages various mafias and criminal organizations to take advantage of them at this very moment. Whether through direct scams or the payment of illicit activities with cryptocurrencies, this situation has contributed to the exponential growth of the deep web—also known as the dark web—in recent years. These are illegal platforms where various prohibited products can be purchased: weapons, certain types of pornography, drugs, etc. They operate mainly with cryptocurrencies since it is virtually impossible to identify the sender and recipient of transactions.

If the facts mentioned above were not concerning enough, it is worth noting that several public figures, such as Elon Musk and Donald Trump, have launched their own cryptocurrencies, profiting from their control and fueling speculation.

Finally, let's talk about cryptocurrency mining. Although it is a completely legal activity (or at least unregulated in many countries) and appears to be harmless, it requires massive mining centers. These consume an enormous amount of electricity, necessary both for their operation and for the cooling of the thousands of computers inside them.

In summary, cryptocurrencies, like many other great inventions, have represented—and will likely continue to represent—a major revolution thanks to the technologies developed around them, such as blockchain. However, they hide a very dark side that is either ignored or goes unnoticed by many people within this sector.