LibraryLeadership Ethics Case Library - University of Arizona Center for Leadership EthicsCryptocurrency: New Gold or Fool’s Gold?
Leadership Ethics Case Library - University of Arizona Center for Leadership Ethics
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Last Updated: 04/02/2026
Case Organization
https://eller.arizona.edu/departments-research/centers-labs/leadership-ethics
Eller College of Management 520-621-2165 1130 E. Helen St. | P.O. Box 210108. Tucson, AZ 85721-0108
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Background & Objective
The challenge or opportunity you are trying to address for the organization. |
On Oct. 31, 2008, a white paper penned by a person using the alias “Satoshi Nakamoto” described a new system of electronic cash called Bitcoin. Cryptocurrency is the name given to a broad group of digital assets which are not issued, regulated, or backed by a central authority. Cryptocurrencies are digital tokens used to transfer online payments directly from one party to another without using an intermediary entity. Underpinning cryptocurrencies is an open-access ledger referred to as the blockchain. When a cryptocurrency owner transfers a digital token to another party, the transaction is posted to the blockchain and assigned a unique string of numbers and letters. The distributed software networks that cryptocurrencies operate on can be downloaded by anyone. Miners, the people who run these programs, verify transactions by running the numbers through formulas on high-powered computers. These miners compete with others to batch together a block of transactions. The first block to be recognized by the network earns the winning computer a batch of newly minted bitcoins. This competition provides an incentive for miners to maintain the network and a mechanism through which new bitcoins are created.1 Cryptocurrency has stirred up considerable hype. While detractors have described cryptocurrency as a Ponzi scheme, others remain sanguine it will become the world’s currency reserve, advocates believe it is the new gold. The case involves multiple stakeholders and raises economic, legal, and ethical issues worthy of consideration.While there are thousands of cryptocurrencies, only a handful have any appreciable size and potential future (e.g., Bitcoin, Ethereum, and Tether respectively). The total marketcapitalization of the global cryptocurrency market is now back at the $1.1 trillion level. Nonetheless, the aggregate cryptocurrency market cap is still down sharply from its peak value of nearly $3 trillion in 2021.2 Recent small surges notwithstanding, the cryptocurrency market is stuck in the doldrums. Some experts have suggested that cryptocurrency prices could fall even further before any sustained recovery. Though still in its infancy, the industry is constantly evolving with new entrants of cryptocurrencies, exchanges, lending platforms, dealer-brokers, and Web3. This largely explains the boom-and-bust cycles. |
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Learning Objectives
This is what students will learn as they complete the case. |
This case focuses on understanding cryptocurrency as both a technological innovation and a source of economic, legal, and ethical disruption. Students will develop skills in analyzing digital asset ecosystems, evaluating regulatory gaps, and weighing the benefits of decentralized finance against risks related to fraud, volatility, environmental impact, and consumer protection.
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