Steemit Crypto Academy Homework Season-2 Week- 6 Post For @Levycore

I thank the steemit team and Professor @Levycore for providing a platform where we learn a lot about cryptocurrency.

Professor has told us about cryptocurrency in a very beautiful way, today I try to complete his given task.

Sounce

1. What is the fundamental difference between Cryptocurrency and the conventional financial system?

When we hear the word currency, we immediately think of a valuable currency that is in the form of paper or silver and gold coins and is approved by the government or the state. The currency used in our daily lives by which we meet all the necessities of life and receive currency by offering our services and achieve our goals by spending this currency according to our desires is called Conventional Financial System. Each country has its own currency symbols. For example, the currency used in our country has a picture of the founder of our country, and other governments gave information, while other countries have currency according to their government agenda.

If we now talk about cryptocurrency, it is also called digital currency which operates on a blockchain and requires a transaction to move it from one place to another through blockchain. Goes Cryptocurrency does not have a physical existence, it is only online to the extent of digits, as the digital system is running in all the banks of the world today, people only look at digits online to see their balance, etc. Numerous types of cryptocurrencies have come into existence and there are also many types of currencies in the world that have a physical form. Each country and state has its own currency.

The main difference between cryptocurrency and conventional currency is that cryptocurrency appears online, on the other hand, we carry conventional currency in our pockets or in bags or wallets, etc. You need to have a digital device to keep the cryptocurrency, but you don't need anything to keep the conventional currency. You can keep it in your pocket. There is a time limit for using conventional currency while there is no time limit for using cryptocurrency. We can use it whenever we want in 24 hours. No special training is required to use the conventional currency while in order to use the cryptocurrency you have to follow certain instructions and learn how to use it.

1. Why is a decentralized system needed?

First of all, we need to understand the decentralized system. What is the decentralized system? When we move any cryptocurrency from one place to another, we need a blockchain. Of which one is Centralized and the other is decentralized. Centralized blockchain is run under a company or an authority. The company runs this system as it sees fit and can turn it off and change it at its will. But the Decentralized system had no authority. In the decentralized system, it belongs to users, it is not under anyone's control.

Now we talk about why a Decentralized system is needed. I often think that when we invest all our wealth in cryptocurrency, we cannot protect our wealth if we use a centralized system. But on the other hand, we are absolutely safe when we use a decentralized system. So we need a decentralized system as our wealth is not controlled by any company or authority. Because our investment is under the control of a company or institution, they can drive us in any case and our investment will not be safe. If we invest our money in a decentralized system, we can safely make a profit. We should use Decentralized Exchanges and Decentralized blockchain online in cryptocurrency so that we can protect ourselves from any loss.

1. What affects the value of cryptocurrencies?

These days are going to be the era of cryptocurrency because people are taking interest in cryptocurrency and some people who do not know cryptocurrency are learning it. Investors are interested in investing in cryptocurrency for more profit in a short period of time. In order to increase their business, they are looking for some conditions so that they can get maximum profit in an easy environment.

Let's read the following lines to make it clear,

• Cryptocurrency is changing our lives very fast.
• People are using cryptocurrencies to speed up the transactions in their businesses.
• People are transacting with each other all over the world through cryptocurrency.
• The rise in the value of bitcoin has greatly increased the value of cryptocurrency.
• People are doing many things in cryptocurrency to gain profits, some people are buying and holding cryptocurrencies and some are staking and some people are interested in trading.
• Cryptocurrency is attracting people very fast and people are seeing the one system all over the world very soon.
  In short, cryptocurrency is putting a lot of effects on our lives.

1. Why can't everyone be a miner?

Source

All cryptocurrencies enable their transactions using blockchain, And to do the transactions, the minors do their work, which makes this transaction successful by creating blocks. A lot of cryptocurrencies can be mined, but for this, it is very important to have the following things to get success in mining,

• Specified computer equipment
• Costly devices that mine
• Skill for mining
• Heavy power to run computer/rigs to mine
• Time to work

If we read complete detail of mining, then it is very expensive to earn crypto by mining particularly in developing countries where rates of electricity are high.
Not every man can mine cryptocurrency because he does not have all the necessary equipment to mine crypto.

1. Why can cryptocurrency transactions be called more transparent?

Transactions of cryptocurrency are publicly shown and every person can see it to open Explorer, there is no hidden thing in it, so we can call it transparent. All the transactions of other than cryptocurrency, especially in banks, are hidden and no one can see them.
The cryptocurrency is transacted through the blockchain and blocks are created in it, which every person can see. Therefore we can say that the transactions of cryptocurrency are absolutely fair and transparent.

1. Explain how the development of cryptocurrency in your country?

My country is called Pakistan and it is situated in Asia. There are many people who know cryptocurrency in our country. People are working in cryptocurrency, many people are trading but till now our government has not taken any step to grow cryptocurrencies in the country.
But the work of freelancing is going on in our country very much, on a large scale the government is also teaching young people to earn through freelancing, due to which people are turning towards earning on the internet and so they are going to be aware of cryptocurrencies as well.
Bitcoin has not been declared legal in our country yet. Because of this people are not very much involved in cryptocurrency but an agreement has been done with amazon in our country now, due to which people will now be aware of cryptocurrencies and deal with Amazon in US dollar. It can be expected in the future that cryptocurrency will be legally justified and people will become very much involved in it.

Conclusion:

If we compare the world 10 years before, with today's world, then we will come to the conclusion that cryptocurrency has become more papular in the world and people will use it a lot in the coming years, because of the fact that its transactions are transparent and a lot of people will trade in it and gain profits from their investment. Moreover, every person will have to be involved in this because the business will be linked to cryptocurrencies, which will be a compulsion of every man in the future.

If we say that the future of cryptocurrency is bright, then it will be perfect.
The time is not far when the Conventional Financial System will end completely and every type of transaction will be done through cryptocurrency i.e. digital currency.