Vidya Sethuraman
India Post News Service
Since Bitcoin’s launch in 2009, cryptocurrencies have been hailed as a new frontier for building wealth and exchanging value outside the traditional financial system.
Supporters argue that crypto can empower individuals, particularly in minority communities that have long been underserved by banks, by offering new paths to financial inclusion and economic agency. Some advocates even see it as a tool to challenge and reform the entrenched U.S. financial structure. But critics warn of serious pitfalls: extreme volatility, lack of oversight, and a pattern of targeting vulnerable populations with high-risk promises. American Community Media (ACoM) held a media briefing on the 13th June inviting experts from industry, government departments and academia.
Tyrone Ross, CEO & Co-founder of Turnqey Labs and Principal at 401 Financial Cantrell Dumas, Director of Derivatives Policy, Better Markets used his own experience to illustrate the potential of virtual currencies. He grew up in a family without a bank account. As an adult, he worked on Wall Street and experienced firsthand the exclusivity and injustice of the traditional financial system. He believes that the birth of Bitcoin and blockchain technology is a positive challenge to the current financial system. Even if you don’t have a bank account, you can use your mobile phone to remit money and transfer money across countries. Cryptocurrency is like digital cash, allowing poor people to obtain financial services at very low cost.
Ross pointed out that there are about 5 million people in the United States who are “unbanked” and 12 million people live in bank deserts typically meaning more than 10 miles away from banks. The monthly fees and fines of traditional banks often form a heavy burden on low-income households. He emphasized that virtual currency technology can break geographical and institutional barriers and provide fair financial access.
Cantrell Dumas, Director of derivatives financial policy at Better Markets warned that cryptocurrencies are still highly speculative assets and their volatility is particularly dangerous for households with limited financial buffers. Fraud cases have also increased rapidly. According to FBI statistics, cryptocurrency-related fraud caused more than $5.6 billion in losses in 2023, which surged to $9.3 billion in 2024, a 66% increase. Fraudulent techniques include Ponzi schemes, fake investment platforms, phishing text messages and impersonation extortion, especially targeting the elderly and those with insufficient financial literacy.
Elizabeth Kwok, Managing Director, FTI Consulting added that many cryptocurrency scams are actually “new wine in old bottles”, taking advantage of investors’ fear of “missing out on the opportunity to get rich in Bitcoin. She reminded the public to be wary of common scams such as sudden investment invitations, only accepting payments in cryptocurrency, requests for quick remittances, or using technical jargon to confuse people.
Also Read: How to Buy Bitcoin in India
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