Cryptocurrency: This Isn’t Just a Dog Coin Thing
May 2025 | By Farra Santoso
At first glance, crypto seems like just one giant meme. I mean, come on – Dogecoin? A coin based off of a literal Shiba Inu? Are we trading dogs as a currency now? People were all investing in coins with names like “Pepe”, “FLOKI”, and “Skibidi” (okay, I made that one up - but would you even be surprised if it was real?)
But underneath the memes, something serious was happening. Crypto isn’t the joke people make it out to be - it’s actually changing people’s perception of money, banks, and the government. And from being on the unruly side of Twitter and Reddit, it surfaced as a global financial phenomenon.
Cryptocurrency is a digital currency that uses cryptography for security, and operates without a central bank or government controlling it. Think of it as money that exists only online, and you can freely send it to anyone with an internet connection. In 2021, in hopes to promote financial inclusion and job creation, El Salvador became the first country to make Bitcoin legal tender. Meanwhile, countries like China heavily opposed the currency, even going so far as to ban crypto trading within its borders. The world couldn’t decide: Was crypto a good investment or a fraud wrapped in code?
At the same time, the value of major cryptocurrencies like Bitcoin and Ethereum skyrocketed… and then plummeted… and then skyrocketed again. What does this mean for people? They were making and losing billions of dollars within mere seconds. And this instability is a detrimental issue, because, oftentimes, people pour their entire life savings into crypto hoping for fast gains, only to lose everything overnight.
“Crypto? Isn’t that just for tech bros, conspiracy theorists, and people who think the government is tracking their toaster?”
Nope. It’s way bigger than that now. Crypto affects:
Everyday people. From college kids investing $50 hoping to strike it rich, to families who put their life savings into Bitcoin, everyone is getting involved - sometimes without really knowing how it works. And when prices crash? Ouch.
Businesses, who love crypto because it cuts out the middleman - banks. With crypto, payments can be faster, cheaper, and give businesses more control. But not everyone’s sold. Other businesses worry about what happens if the value of a cryptocurrency crashes between a customer’s checkout and when payment is received. That kind of volatility can mean huge losses.
Governments, who find it harder to control how money moves as a result of crypto. That’s scary if you’re trying to track taxes, stop illegal activity, or manage your country’s economy. In traditional currencies like the Indonesian rupiah, central banks work hard to keep prices relatively stable. But with crypto, there’s no central authority.
You (yes, you). Even if you’ve never touched crypto, you’re growing up in a generation that’s being shaped by it. Digital currencies are rapidly emerging, and their impact on our economy could affect jobs, inflation, and how we pay for things in the future.
Cryptocurrency doesn’t just offer us NFTs (non-fungible tokens), it also offers us a clearer view of economic concepts in action. Essentially, crypto is supply and demand on an energy drink. The urgency of limited coins combined with viral hype means that prices shoot up. But if people stop believing in it or panic-sell? Demand decreases and we witness a price crash.
Price volatility, a term used to describe how much and how quickly the price of something changes, is one of the biggest challenges with cryptocurrencies. Take Bitcoin, for example. On Monday, it might be valued at $40,000. But by Friday, it could be worth $31,000 and a sad tweet. That’s risky for investors, but it also makes it hard to use like regular money - its value can swing so wildly that buyers might overpay and sellers might end up losing money.
Crypto also touches into behavioral economics, which combines elements of economics and psychology to understand how and why people behave the way they do. People don’t always invest logically. They buy coins because Elon Musk tweeted, or because their cousin’s friend “hit the jackpot”. When people make decisions based on FOMO (fear of missing out), they're basically gambling with their money. If the price crashes (because the virality dies down, a tweet backfires, or investors start selling), people can lose their savings - and fast.
Governments and financial institutions are starting to catch up. Some countries are exploring regulations to protect consumers from scams and extreme volatility. Others are experimenting with their own digital currencies (called CBDCs, or Central Bank Digital Currencies). Education also plays a huge role - the more people understand how crypto works (and doesn’t), the smarter their financial decisions will be. As for you? Whether you’re just curious or already invested in crypto: Think before you buy. Do your research. And never invest money you can’t afford to lose.
