Steemit Crypto Academy Contest / S2W1 - How Cryptocurrency has Shaped the Financial Realm. What is Its Future? by @emmy7924
Hello Steemian, you're welcome to my post. Today I am happy to be participating in this Season2 challenge. Firstly I thank you all for your generous support during the last season.
In this post, I have discussed a lot about cryptocurrency and conventional currencies which is our local currency (fiat). It is no longer news that cryptocurrency is fast growing and when it come to trading cryptocurrency Is the digital assets that is normally traded against conversation asset.
Users are expected to briefly give an overview of cryptocurrency.
As I have earlier said, cryptocurrency is fast growing and today there a part from Bitcoin which is the first cryptocurrency that was founded in 2009, there are many other fast rising cryptocurrency.
The word cryptocurrency means a digital representation of conventional currencies that is built on a blockchain using a cryptography. As a digital asset that cryptocurrency is,it can circulate without the approvals of central authority.
Cryptocurrency also functions as a medium of exchange, store of value and also as a unit of account that is done digitally. Cryptocurrency is most operate on a decentralized peer to peer system without the involment of intermediaries. Unlike conventional currencies that is centralized having a central authority that control the affairs of the currency.
However, most of the cryptocurrency that we have operate on a private ledger system and it's controlled by single entity which is the entity that created the cryptocurrency itself. When it comes to the value of cryptocurrencies it's the market demand that determine the value of a cryptocurrency. That is the more people are buying the cryptocurrency that is how the value will keep on increasing.
Advantages of cryptocurrency
- Cryptocurrency remove the issue of central authority from managing the supply of money by bringing more value to cryptocurrency.
- Cryptocurrency is a promising lively-hood of living that a lot of people depends on.
- Cryptocurrency transactions are very fast
- Cryptocurrency is an opportunity for everyone to earn a passive income through so many process like staking, voting for governance and many more.
Disadvantages
- Cryptocurrency is highly volatile. It price can fluctuate at anytime it can easily fall and rise.
- A lot of cryptocurrency projects are not trusted even with the mass adoption of blockchain technology.
- Cryptocurrency is not regulated by any central authority which is one of the main issues as to why the government are fighting cryptocurrency.
Exampe of cryptocurrency
- Bitcoin:
Bitcoin is the first and the most recommendable cryptocurrency that we have.
- Ethereum:
Ethereum (ETH), is a cryptocurrency that is used to perform financial transactions and it's the next to Bitcoin cryptocurrency.
- Litecoin:
Litecoin is a cryptocurrency that adopt the used of Bitcoin that was created to make transactions more easier and faster.
- Cardona:
*Cardona is cryptocurrency that is next to Ethereum cryptocurrency interns of price value.
- Stablecoins:
Stablecoins are cryptocurrencies that are pegged with US.dollar. Stablecoins are designed to be stable with conventional currencies and the most popular stablecoins are USDT, BUSD,USDC etc.
- STEEM:
Steem is a social media cryptocurrency that is used to rewards content creators and it can be tradable just like Bitcoin, Ethereum and others.
- Dogecoin:
Dogecoin is cryptocurrency that started as a joke but has gained pupolarity so far.
Draw a comparison between cryptocurrency and conventional currencies.
Cryptocurrency and conventional currencies share some similarities since there are all valuable asset that can be used for payment of goods and services or use as store of value by people.
The two rely on consumer spread and trust in order to have value as a means of exchange most especially cryptocurrency which depends on market influence.
Cryptocurrency has no centralized authority. Unlike conventional currencies that has central authority which most back by the government of a nation and controlled by central bank.
When it come to cryptocurrency, it's created and distributed through what is known as mining which is totally out of central controlled.
Both cryptocurrencies and conventional currencies are use online (digitally), to pay for goods and services.
Cryptocurrency is created for the purpose of removing the used of third parties involment. While conventional has so many third parties involment.
Explain the distinctive innovations of cryptocurrency and its downsides.
Dispite the fact that cryptocurrency is highly volatile, it's still very important in our society. The innovation of cryptocurrency is so large in the areas of trading market, such as metaverse and gaming.
Some of the keys innovation of cryptocurrency are briefly explain below;
Infrastructure: with cryptocurrency which brings about blockchain, today there are numerous infrastructures that is coming up in the areas of law, real estate and even our healthcare and financial institutions.
With the innovation of cryptocurrency and blockchain data are been stores immutable on a blockchain network using cryptographic.
The metaverse: with the help of cryptocurrency today we now have what is called metaverse that allow Investors to invest on games and real estate. Metaverse has significantly increase the value of cryptocurrencies.
Metaverse is where digital tokens stands as currency and it has make a lot of Investors to track their payments system through the use of metaverse. This one of the best innovation of cryptocurrency and blockchain.
Innovation of Tokenization: soonest this will become a real story to discuss about. As we keep in going digitally, assets are now becoming tokenized. This is an innovation of cryptocurrency making creating vast opportunities for Investors to have their saying on assets that are of real world.
#-### The downside of cryptocurrency
Generally, cryptocurrency is face with some downsides which are making the world to be afraid of cryptocurrency and some of the downsides of cryptocurrency are given below.
The volatility of cryptocurrency is too high and risky. You never can tell how far the price will fall and how far it will rise. This is one of the reasons why nations are fighting against cryptocurrency because cryptocurrency is more volatile than conventional currencies.
Cryptocurrency when it comes to medium of exchange it is not as conventional currencies, this is because it's not accepted is store like conventional currencies and when talking about unit of account cryptocurrency is not a units of account. This is because cryptocurrency price can't be fixed.
For example you have an E-commerce store and you want your customers to be also pay you in cryptocurrency and you set both in cryptocurrency and conventional currencies. Let's say that the goods is worth $5 and in crypto Steem you fixed it at 20 STEEM. The thing here is that $5 will remain the same but 20 STEEM may no longer be $5 in the next minutes.
How do you think major problems with cryptocurrency can be handled? Let this be a response to the downsides highlighted earlier.
As for the aspects of volatility in cryptocurrency. I believe this can be minimize. There should be a a very percentage at which cryptocurrency can fall and stop. This is because the risk that is in cryptocurrency is too too high. Today your $100 can turn to $20 and tomorrow it can turn to $120 or so.
It is even hard to predict how price will move. I this to handled this problem the best way is that every cryptocurrency should be fixed as to not fall below -80% so as not to give Investors heart break.
As for cryptocurrency mean a medium of exchange it can be very possible if cryptocurrency can also be make in papper form just as our conventional currencies is.
There should also be paper cryptocurrency for easy buying of goods and services. A lot of people aren't aware of this and some of them aren't sound when it comes to technologies must especially market men and women.
I strongly believe that if we have papper cryptocurrency and crypto ATM machine the problem using crypto to pay for goods and services will be settle and everyone will love it.
Do you believe in the future of cryptocurrency? State your reasons. Any Recommendations?
Yes, I strongly believe in the future of cryptocurrency and these are my reasons why.
Crypto has brought about Decentralized Finance (DeFi). With DeFi our financial institutions has started adopting DeFi because of the transparency and security in DeFi.
The value of cryptocurrency is very high. Even if cryptocurrency falls today tomorrow it will still rise and it values is as follows; privacy, store of value, digital asset/goal, payment, stablecoins and many others.
Cryptocurrency is more transparency and it's also offering banking services. With the mass acceptability of cryptocurrency it has already shown that cryptocurrency is the future.
Conclusion
When tracing the history of cryptocurrency and the mass adoption of cryptocurrency today, it's of no doubt that cryptocurrency will become the future of money. With the way blockchain technology is growing rapidly,it means that in a few years to come it will over thrown our centralised financial institutions.
In this challenge, I am inviting @preye2,@prince4icon and @nancygbemi to participate in this contest also.
Thank you for reading my post.
Cc;-
@kouba01
@fredquantum
За цифровой экономикой будущее - согласен!
It is a digital currency, it is out of anyone's control and its security is very high. Its transferability is very good, so ordinary people can use it to feel a lot of comfort and can easily complete the transaction. You have also presented excellent.
Hello friend, I must commend your work. You have done so well by letting us know how cryptocurrency is good and its downsides. Thanks for sharing
Thanks for inviting me, I love your presentation and how you explained in details about cryptocurrency and also the innovation excellent publication ✅
Best of luck friend 💃
Yes one of the major issue of crypto is its volatile nature. Crypto gives you a huge profit as well as a huge lose. So, do your proper research before investing in crypto. Very well writen article my dear friend. Thanks for sharing a very informative article with us.....