Bitcoin, Cryptocurrencies, Public chains - Steemit Crypto Academy Season 5 - Homework Post for Task 5.
INTRODUCTION
Hello Steemians! I’m so excited that I’m making progress in my steemit journey, passing through some hurdles of achievement tasks posts then I’m eligible to partake in crypto academy.
After going through the breathtaking lecture of professor @stream4u, I’m happy to show understanding by answering the question 1.
Question 1
WHAT IS CRYPTOCURRENCY AND HOW YOU WOULD LIKE TO SEE CRYPTOCURRENCY IN THE FUTURE?
WHAT IS CRYPTOCURRENCY?
Considering that the world is tilting to cashless and digital economy, cryptocurrencies has become the most used currencies to buy goods and services without stress. It is the easiest way of making transactions within your country and outside your country online at the comfort of your home without the intervention of any middle man just like in the banking sector with no (or) less service charge.
Crypto currency is therefore a digital currency that is used to buy goods and services online. The transactions are secured with the aid of cryptography. It works using a Blockchain technology. Block chain is a decentralized technology Data base that stores information. Blockchain is very secured because it is maintained by different computer network which makes it difficult for scammers to breakthrough and cause harm.
There are many cryptocurrencies in the market currently but the most popular and first successful in the market is Bitcoin which was developed by Satoshi Nakamoto. Just like other currencies using fiat money e.g. dollar, pounds, naira etc, cryptocurrencies also fluctuates in prices. They could rise and fall in the market and as a result any person who wants to invest in cryptocurrerncy must understand the principles of trading to avoid the risk of losing ones assets as had been experienced by many. Though risks exist in all investments.
To check and monitor different cryptocurrencies and prices in the market we can do so by checking the coinmarketcap where all cryptocurrencies values are detailed. Coinmarketcap
Advantages of cryptocurrency
Security
Transactions in cryptocurrency is very secured and private. Access to wallet can only be granted by owner of the wallet using a very secured password. There is no middleman in-between to authenticate transactions.
Decentralized
Other currencies like fiat money are controlled and monitored by the Government but cryptocurrecy by the holder of the token or coin.
Ease of transaction
Cryptocurrencies can be traded or exchanged easily with other currencies such as dollar, pound Indian rupees etc.
Cost-effective Mode of transaction
Service charge for transaction is very minimal or some times nothing unlike traditional banking. Since cryptocurrencies are mainly used to send money across borders, it is preferred to normal banking system.
Swift mode of fund transfer
The verification process of fund transfer through cryptocurrency requires little time to process with very few barriers to cross, thereby making it a very swift mode of fund transaction. Unlike the traditional banking methods that takes a longer process and time.
Disadvantages of cryptocurrency
• can be used to perform unlawful transaction. Like illicit hard drugs, weapons and other exhibit that are not legal.
• Data losses such as private keys can be lost and there is no way of recovering these keys hen they’re lost. This can cause a very terrible financial loss.
• Some cryptocurrencies cannot be converted into some fiat money and this is a limitation to some coin owners.
• As a result of the value of cryptocurrencies, hackers are working tirelessly to break into Blockchains to enrich themselves. This is a security concern and causes fear in the mind of crypto investors.
• Once a transaction has been successfully made in cryptocurrency, there is no refund or cancellation.
HOW YOU WOULD LIKE TO SEE CRYPTOCURRENCY IN THE FUTURE?
Though some governments in the society are yet to accept cryptocurrency, does not change the fact that cryptocurrency is the future of trading. Certainly, change is not easily accepted especially when it is not understood properly by people who should spearhead the change. Some will be early adopters while others late adopters.
Considering the fact that great business moguls, influential leaders and celebrities have accepted and running with cryptocurrencies makes it clear that cryptocurrencies will rule the market in the nearest future. For example, Elon Musk is investing in cryptocurrency, Part of Lionel Messi’s wage is paid through cryptocurrency. Recently, the Prime Minister of India, Narendra Modi has accepted cryptocurrency and warned it shouldn’t be abused. This is to mention but a few. So, I’m confident that cryptocurrency will succeed.
While we look forward to trading with cryptocurrency in the nearest future, the security concern cannot be over emphasized. As hackers keep improving on ways to breakthrough Blockchains, attention should also be given to improving the security of Blockchains.
This was my personal experience about seven months ago while I was unavoidably away from steemit. A hacker named broke through my wallet and transferred my SBD and Steem to a user named @molly. There was no trace of my device missing nor my steemit keys shared with anyone. This still cast some fears in me as well as so many other users.
I believe with time, more influential people and Governments will accept cryptocurrency as the medium of trading and this will in turn benefits cryptocurrency investors.
References
https://steemit.com/hive-108451/@stream4u/steemit-crypto-academy-season-4-beginners-course-task-5-bitcoin-cryptocurrencies-public-chains
https://www.geeksforgeeks.org/advantages-and-disadvantages-of-cryptocurrency-in-2020/