Steemit Crypto Academy Contest / S2W1 - How Cryptocurrency has Shaped the Financial Realm. What is Its Future? by @kawsar
Today I will participate in Steemit Engagement Challenge Season-2 Week-1, and today I will Post in the Challenge "How Cryptocurrency has Shaped the Financial Realm. What is Its Future?" organized by @crypto-academy. we are able to bring our content writing talent in different subjects of this contest. By writing regularly in different subject we will definitely improve for our content writing talent. This Steemit Engagement Challenge will help us make and we will increase our knowledge to read more posts of other user.
Overview of Cryptocurrency:
Cryptocurrency The term here is basically a combination of two words. The first is crypto and the second is currency. Cryptocurrency means a virtual currency, that is, a currency that is normal or other. But cryptocurrency can be used and it cannot be caught or touched. Cryptocurrency operates a peer-to-peer network, meaning that transactions can be made directly from one user to another.
Cryptocurrency is a method that is protected by some of the mathematical techniques of cryptography. It is made in a completely decentralized manner. As a result, there is no third type of central authority. The user can complete any transaction very quickly and the transaction is completed without any hassle. No one needs to approve the transaction and its transaction cost is much less than our other currencies.
Bitcoin was started in 2009 by one or more people named Satoshi Nakamoto using blockchain technology. Although this blockchain technology was introduced earlier, blockchain technology did not become very popular then. And since the introduction of this cryptocurrency, blockchain technology has become much more popular, and now, in addition to cryptocurrency, blockchain technology is contributing to many other things. Following the success of Bitcoin we now see many more cryptocurrencies on the market. These are very much helping to increase the market cap of cryptocurrency with a lot of fidelity.
Looking back, we can easily imagine that in the future cryptocurrency will become much more popular and more and more people will accept it. Because the previous record shows that its users are increasing day by day. One of the reasons people have confidence in cryptocurrency. Here a transaction can be done very quickly, also the cost of the transaction is very low. The scalability of cryptocurrency is also much higher than that of others.
Thousands of transactions can be completed every second. The biggest thing is that if there is any transaction here, this transaction can be seen by any country of the world, anyone, at any time. Once a transaction is completed here it can never be deleted. Since it is powered by blockchain technology. And we know that if any information or data is entered in blockchain technology, it cannot be deleted or edited in any way.
Comparison Between Cryptocurrency and Conventional Currency:
If we compare cryptocurrency with conventional currency then I can say that if there is any bad news in any event in the world. No news of such war. Then the price of this cryptocurrency and conventional currency goes down a lot. As we have seen recently, as the price of cryptocurrency has plummeted due to the Russian-Ukrainian war, so has the value of conventional currencies. This has happened in our country, the price of goods has gone up a lot compared to money
We can buy any product through this cryptocurrency and conventional currency. We can use it as a medium of exchange.
I would also like to point out that both cryptocurrency and conventional currency are used for currency exchange purposes.
Differences Cryptocurrency and Conventional Currency
| Cryptocurrency | Conventional Currency |
|---|---|
| Blockchain technology is used for cryptocurrency. | No blockchain should be used for conventional currency. |
| It is managed in a decentralized manner. | It is governed by a country's government or central system. |
| There is no third party intervention. | There is third party intervention. |
| The cost of transacting through cryptocurrency is very low. | The cost of transacting in conventional currency is much higher. |
| Cryptocurrency can complete transactions very quickly. | It takes a little longer to transact in conventional currency. |
| No one needs to approve to complete the transaction. | Since there is a central authority, approval is required for the transaction to be completed. |
| Here one user can complete the transaction directly from one user to another. | It is not possible to make a direct transaction that is beneficial for a pair or two users. |
| There is privacy here. because no ID card, name or email address is required to create an account. | Here you need to provide mobile number, email address, ID card while creating an account. |
| This currency can only be used but not touched | This currency can be used and touched. |
| Once a transaction is completed here, anyone can see it, which means it is open to everyone. | Conventional currency transaction history can only be viewed by the person making the transaction and the bank. |
Explain the distinctive innovations of cryptocurrency and its downsides:
innovations of cryptocurrency:
At this stage I will talk about some innovations of cryptocurrency. In fact, cryptocurrency is something that can be easily transacted and the cost of transactions is very low so people are embracing it.
The first thing I want to say is privacy, I think we all need to have privacy. In that case we have to give a lot of personal information to get our account there. Mobile number, email address, our NID card, passport, our full address. Here, however, my personal safety did not remain. But cryptocurrency is a technology where we don't have to provide any personal information to create an account. And in that case we have complete personal security.
Also one more thing I want to talk about is Decentralized Finance (DeFi). It is a technology that allows us to conduct our transactions in a decentralized manner, meaning that there are no intermediaries, so we can exchange our assets with complete security.
Also one more thing I can say is that it is its security. In fact, security is very important for any type of financial transaction. And cryptocurrency gives us complete security. Because it is a decentralized method and if we can save our private key well here. Then there is no fear of losing our resources. Which we often see in the Central Bank or other cases.
Normally we have a banking system through the central authority, there is a long wait to complete a transaction. But because of cryptocurrency we can complete a transaction very quickly, I think it is a new invention.
its downsides:
At this stage I will discuss some downsides of cryptocurrency. In fact, just as there are advantages to each subject, there may be some negatives. So we have to be aware of that.
One of the problems of cryptocurrency is volatility. Because of these problems we sometimes see so much price fluctuations that we may not be ready to watch. This is especially true for newcomers. Because if they don't know this, then after investing here, they see that the price has gone down a lot. Then they may be disappointed.
Also one of the problems of cryptocurrency. I think there can be a lot more crime related work through cryptocurrency. Because there is no name, email address or any other personal information to create an account, to complete the transaction. In that case, if someone uses the cryptocurrency to make a criminal transaction, he will not be caught.
There is another problem which can happen if someone loses his private key due to negligence but he will not be able to recover the assets in his account. I think this is a problem but in this case if we are aware then this problem will not happen.
How do you think major problems with cryptocurrency can be handled? Let this be a response to the downsides highlighted earlier.
I think instability is inextricably linked to cryptocurrency. So we will never be able to control it. But we can use this issue if we want. If we do a little research before investing in any asset. If we buy at Deep and sell it when the market is good later on, it can be more profitable for us. So I think we can take the issue of instability positively. If it invests we gain a better knowledge of the market.
We do not have to provide any mobile number or personal information for creating or transacting cryptocurrency accounts. In that case there could be a crime here. And if blockchain could do this a little differently, I think it would reduce crime a lot. If there is a limit to the amount of personal information that can be taken, he has to KYC if he wants to transact above 10 thousand dollars.
In fact here is a private key and a public key address when creating our account. And if the private key is lost, we have to lose the assets in our account. While this is true, I think it happens in many cases. And cryptocurrency gives us a lot more security but also a lot more threats. In fact, we have to be very careful about this. That's why we can keep notes in a few private places. Like it could be my Google Drive or my diary or any of my other beliefs.
Do you believe in the future of cryptocurrency? State your reasons. Any Recommendations?
In answer to this question, I can say without any thought that yes, I believe in cryptocurrency a lot in the future and I have some reasons why I believe in cryptocurrency. Which I am discussing in brief below.
- The first reason I would say to believe is that it is controlled in a decentralized way. And since there is no third party intervention or central authority. I have my crypto assets, if I can save my private key but no one will ever take my assets. Because it's completely decentralized. My assets are out of anyone's control or I don't have to worry about when I will transact or not. I can trade here as I wish and if I ever need to trade at night I can do it very easily. Which I can't do in the case of the Central Bank. It's completely under my control, as long as I have the private key. So I believe a lot and I think that because of this belief the cryptocurrency will go a long way. My idea is that the future of cryptocurrency is bright and users will invest a lot here and its market cap will be much bigger.
- Also one more thing I would like to say is that everything here has a high level of transparency and transparency. Any transactions completed here are recorded in the blockchain and are open to the public. Anyone, anytime, anywhere can easily see it through Explorer. I think this is one of the reasons to believe in cryptocurrency. Because there is nothing hidden here and once a transaction is entered into Explorer, it is never deleted or gone.
Any Recommendations?
I would like to give this information about cryptocurrency to everyone that before investing here, you must know and understand the issues of cryptocurrency. Especially for newcomers, the most important thing I would say to newcomers is that they should study these two things well before investing in cryptocurrency and then invest here.
The first thing is what is private. Private keys should be kept very well before investing anything here. If he ever had to lose a private key, he would have to know that if I lost a private key, I would lose all my assets.
Another thing to know is that cryptocurrency is very volatile in nature. So you have to do a good research on this before investing. Because newcomers have invested in a token. But a few days later he saw that his investment had halved. But then he will be very disappointed. So I think before you invest in anything you should do some research on it. The best is when you see that the market is in a much deeper position now. You then buy it and the market will take 3 months 6 months to get to a good position. You can sell it at that time and you will get 30 percent to 100% profit (Profits can be more or less).
Conclusion:
Finally, I would say that the currency of the future is cryptocurrency. Because the way it has increased its market cap in the past days, if it grows at that rate in the future, then we will see a much bigger position of the market cap of cryptocurrency. And I think it will be used for a lot of big companies and personal work. Because I think big companies are having a lot of trouble doing their business right now. Because there are very few transactions per second. But in cryptocurrency thousands of transactions are completed every second and its transaction fee is much lower. Which is much less than the current centralized payment methods. And so my point is that cryptocurrency will definitely control future transactions.
@kawsar
I invite to participate this contest: , @olabillions, @victoh78 , @solexybaba, @patjewell
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Thank you so much Professor for your valuable comments on my post. I am very grateful to you
https://twitter.com/KawsarH67898725/status/1535661108903944193
Yes my friend cryptocurrency uses blockchain technology for their transactions thats mean all transactions are visible to everyone and no one can change them.
Due to its volatile nature we may face huge gains/losses at some point. Some countries are even banning it because of its high volatility.
Yes my dear friend it is a very good thing that we are the owner of our crypto assets. no one can control them unless we have lost our private keys. But the downside is that if we lose our private keys, it will be impossible for us to recover them.
Yes my friend you are right. actually newcomers invest in crypto coins without research in this way they may face a big loss later. I also face big portfolio loss in the past when i was a newcomer in the crypto market. So, If we want to save from a big loss we should do a proper research on the coin that we want to invest in it.
At last, thanks for sharing your knowledge of crypto with me and other steemit users. I appriciate your hardwork. Best of luck for the contest....
Regards:
@malikusman1
I am very happy to receive your comment. Thank you very much for reading my post and making a nice comment. Cryptocurrency is actually a method by which we can transact very easily and the transaction is completed very quickly.
Assalamoalaikum,
Brother I think Fluctuations in price or volatility is not a Disadvantage of crypto. Actually it is the beauty of crypto which allow is to gain huge returns within few Days.
You make a Valuable post and your content is unique keep it up.
Hope you will get good Curation Rewards
Walaikumus salam. In fact, we can take advantage of it. But in many cases it is a cause of great frustration for newcomers. Thank you for your valuable feedback. I agree with you
Thank you so much for inviting me friend
After extensively reading your post I decided to make mine.
I invite you to read
Thank you so much for your valuable comments and I'm glad to have your comments
You have successfully explained cryptocurrency from the scratch, this breakdown quite amazing and can be referenced to beginners, the fluency in these article is top-notch.
Good luck with your entry.
You've made a wonderful comment, it's nice to see my post, and thank you so much for your valuable comments.
As you have said in the case of cryptocurrency, there is no need of knowing your customer(KYC) which show that It secure users identity
You have taught us the benefit of cryptocurrency and it set back, your advice to the newcomer is good one as most people tend to invest in crypto without proper comprehensive knowledge of what and how it goes
You read this post well and made valuable comments. It was very nice to see. In fact, I think when newcomers want to get into cryptocurrency, they need to know better. If he invests then he will not face loss.
So true, comprehensive knowledge of cryptocurrency must be known before venturing into it
You are right and I agree with you. Because if he invests here without full knowledge, he may go astray and face loss.
I agree, crypto is here to stay! The only thing left is to see how quickly the rest of the world wake up to the fact.
I must say, with me getting to learn more about crypto I’m actually surprised that after so many years it is not fully accepted.
Thank you for the invite I have dropped mine;
https://steemit.com/hive-108451/@patjewell/steemit-crypto-academy-contest-s2w1-how-cryptocurrency-has-shaped-the-financial-realm-what-is-its-future-by-patjewell
In fact, cryptocurrency is a thing that is going a long way. I am very happy to receive your valuable comments and express my gratitude to you. Thank you for such a nice comment