Learn About Cryptocurrency @Levycore

image.png
pixabay

INTRODUCTION

Another great week is here again with us and that comes with another opportunity to discover something new and probably try our hands on it. SteemitcryptoAcademy lessons have been very insightful, I have never regretted learning from the various professors employed to lead the lessons. I also appreciate the the knowledge shared by @Levycore in understanding cryptocurrencies and how it truly works.
I welcome you all most especially my co-leaners to my assignment on the lesson which is Learn about Cryptocurrency
I have gotten more knowledge to the above subject matter, because there are a lot of things I didn't know about cryptocurrencies and how It works.
With this I want to try my hands on the assignment attached to this lesson.
Please professor permit me to copy the questions.

What is the fundamental difference between cryptocurrency and conventional financial systems?

So in answering this question, one needs to know about cryptocurrency. Now I perfectly @anaman who firstly introduced the word to me said, Is a termed use to own money digitally. In Ghana here, mobile money works here much, so he use the concept of mobile money to explained cryptocurrency to me. Just as our monies are on our mobile wallet and we transact it digitally, that is the same way cryptocurrency also works. Is just a digital form of owing asset which is designed to serve as a medium of exchange. Example include bitcoins, steem, Ethereum and so on. The definition he gave outlined some differences between the conventional financial systems and cryptocurrencies.
Differences between the 2 systems.

CryptocurrenciesConventional financial System
Digital medium of exchangeThis is the physical medium of exchange
this is decentralized issued and controlled by computerissued and regulate by the government
uses the concept of supply and demand in prices determinationworks with market and government regulations

however aside all these they all serve the same functions which is a A MEDIUM OF EXCHANGE.

Why is a decentralized system needed?

Now looking at the differences that exist between these system of medium of exchange cryptocurrencies which falls under decentralization is really needed in our world today because of its numerous opportunities and significance associated with it.
Comparing centralized and Decentralize system, Centralized system which involves a third party which is the bank but decentralized system does not need any intermediary just a transaction between the sender and the receiver.
I will use a friend who is into the importation of second hand cars from Canada to explain why decentralized system is much needed. My friend has been in this business for quite sometime now with no idea about cryptocurrency, He professed to me how much he has paid as fees for sending money from Ghana to Canada, so this gave me an opportunity to share crypto to him. It is very easy to use and does not involves in banks and thereby not attracting any additional fees. We need decentralized system to make transaction very easy and at low cost. Business men will not be affected by government regulations. He was much happy to learn more and employ this medium of exchange to do his business. This pre supposes that the decentralized brings some kind of relief to business men and individuals in places where government controlled financial institutions.
The decentralized system is also difficult to be hack by hackers as the system is monitored by professionals called miners and an address can be traced and coins revert back in the case of wrong transactions when reported.

What affects the value of cryptocurrencies?

Cryptocurrencies have really given a lot of options to people and have gotten to the point we ask if we still needs banks? Basically the value of cryptocurrencies are determine by the demand and supply of the market, well not only that, we have other factors too that affects cryptocurrencies namely
Whale investors- Whale Investors are those investors, it could be individual or big institutions with high capital, so they easily affect the price of crypto when they buy or sell more of their crypto assets own.

Competition from other coins- When other form of crypto emerges, it comes along wit measure as to how to compete with the existing coins thereby affecting the value of cryptocurrencies.
Availability and adoption is also a factor that can determine the value of cryptocurrencies, the more people are using crypto, its value also changes or is affected. We have so many other factors that determine the value of cryptocurrencies but just to mention few,

Why can't everyone be a miner?

image.png

source
Mining is a term use in cryptocurrency world to mean a process of verifying transactions and those that verify with the use of computer system are called the MINERS. From the lecture, professor made it point blank not everyone can be a miner because of the complexity that is involve but of course aside its complexity, everyone can apply and become a miner.

These Blockchain miners install and run a special Blockchain mining software that enables their computers to communicate securely with one another. Once a computer installs the software, joins the network and begins mining bitcoins, it becomes what is called a ‘node.’ Together, all these nodes communicate with one another and process transactions to add new blocks to the blockchain which is commonly known as the bitcoin network.

Source

From this quote it means anyone can become a miner but it needs more knowledge with the blockchain, for newcomers, there is no way you can be a miner, it takes a lot of work to be a miner.

Why can cryptocurrency transactions be called more transparent?

Of course it may have it up's and downs, but we can never overlooked at its transparency, cryptocurrencies like bitcoins are traceable and this makes it for hackers to hack ones accounts, transactions are permanently stored in the blockchain. It is also public, meaning anyone can see the balance and all transactions of any address use for transaction.

Explain how the development of cryptocurrency in your country?

In Ghana, the Bank of Ghana recently announced that the trading of cryptocurrencies is illegal because according to them is it not recognized as a legitimate form of money. The Governor of the Bank of Ghana stated that the necessary regulations to support the use of cryptocurrencies do not currently exist in Ghana. However, the Bank of Ghana has drafted a Payment Systems and Services Bill (Ghanaian Bill), which it believes will enable the regulation of cryptocurrency in Ghana in the future. After a preliminary review of the Ghanaian Bill, there seems to be no reference to cryptocurrency, blockchain or digital currency, however cryptocurrencies will apparently be regulated through companies registered with the government as “Electronic Money Issuers. The Bank of Ghana has discouraged the use of cryptocurrency until the promulgation of the Ghanaian Bill.
Report

Well, I can attest to the fact that aside this statement issued by the Bank of Ghana, cryptocurrencies are well known by the youth of the land with many investing and doing business with it. Well just as the warning issued, there is no company or business entity that do accept cryptocurrencies as a form of exchange.
But I strongly with the emergences of new reforms surrounded the use of cryptocurrencies most countries of which My country is among will soon accept the use of cryptocurrencies as a medium of exchange.

CONCLUSION

Cryptocurrencies since its introduction has become hot in the financial system causing a lot confusing among many state whether to accept it not. Cryptocurrencies will continue to suffer this fate but the truth of the matter is it has really come to stay and nothing can over power it. It has now become a big avenue for investors. But as we were admonished by professor @Levycore not to invest monies that we can't afford to lose. We must subscribe ourselves to the daily news about crypto and have time to learn to ensure our survival in the crypto world. This lesson by has really given me more insight about and I wish to say that, Thank you professor for your time and everything.

presented by @awuahbenjamin from Ghana.

Sort:  

Hi @awuahbenjamin , Thanks for submitting your homework

Feedback: You have completed every point but, You are still lacking in explaining each point ,next please do more research for your post

Rating: 4,5

Thank you professor, but can I edit and add more spice to it

Coin Marketplace

STEEM 0.19
TRX 0.18
JST 0.033
BTC 88172.86
ETH 3116.36
USDT 1.00
SBD 2.77