Steemit Crypto Academy Season 2 Week 6 Homework Task By @fadil1 : Learn About Cryptocurrency

Good day everyone,

I am very delighted to be part of this wonderful lecture and on the topic on Learn About Crypto currency. I will like to thank our noble professor @levycore for that wonderful lecture.I really enjoyed and learnt a lot so am kindly here to present to you my work.

THE FUNDAMENTAL DIFFERENCE BETWEEN CRYPTO CURRENCY AND THE CONVENTIONAL FINANCIAL SYSTEM

But I will kindly like to give you a brief explanation on crypto currency before getting into serious that is by answering the question above.

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CRYPTO CURRENCY

Crypto currency as we all know is a currency just like the normal cash we use day in and day out but the little difference with this crypto currency is that is a digital asset which cannot be held round like the normal cash we spend and transactions can also be made by it and also plays a big role in terms of exchange.Investors or traders in this crypto currencies used a certain figure known as cryptography which helps them a lot in terms of they consuming more than what they had and also double consumption of what they get.The crypto currency we are talking about here is a decentralized feature. Most people around the world have now invested in this crypto currency because it’s very reliable which you can use in purchasing certain goods for example like Tesla and many more. I personally have invested in crypto currency I what I like about it is that you gain a lot at end if you are a person with patience and take risk as well.

CONVENTIONAL FINANCIAL SYSTEM

A conventional financial system is a centralized system that works completely with an organization and everything happening in this system is managed by a particular human being so therefore making any financial transfer need to go through certain steps and also an order should be given by management before it will be done successful.

Let’s now start with what we where task for:

FUNDAMENTAL DIFFERENCE BETWEEN CRYPTOCURRENCIES AND CONVENTIONAL FINANCIAL SYSTEM

Below are some main difference between these two:

1.With cryptocurrencies, transactions are made faster in terms of speed than that of conventional financial system. Am boldly saying this because when you send a steem to another person who has a steem account within some seconds after you send it the person receives the alert but with conventional financial system let’s take it that you have a son who lives far away from you and you want to send money to him and it should be through bank. When you go to send the money it’s either it waits time before reflecting into your son’s account or the bank managers will talk you there is a network problem soho and come the following day.

2.Again, With cryptocurrencies transactions can be made at every corner and any point in time. So this makes it very reliable and attracts more people to start dealing with it but with the conventional financial system transactions can’t be made anywhere at anytime and am saying this because banks in Ghana here closes around 4:30 pm, so imagine after that time you want to make an emergency transaction you can’t unless you wait for the next day. And I said it can’t be made everywhere because if you go to a different place where you don’t have your ATM card with you and your bank to is not at that particular place transactions cannot be made.

Lastly,with the cryptocurrency it is decentralized feature which makes the trader to make his or her transactions a successful one without the interference of any authority and it can also be received by any another trader at anytime. All transactions made by a trader can also be seen by other trader but with the conventional financial system it is known as a centralized feature because before transactions are made to be successful, the manager has to interfere and this makes only the user to know his or her transaction history.

WHY IS DECENTRALIZATION NEEDED

Decentralization system is now one of the biggest systems in the world. And many investors this time around go for the decentralized system than the centralized system because of the following reasons. Below are some of the Most :

I will like to first talk about the security side of it.We know very well that generally an individual invests in a certain asset to finally get more profit from it. And with the aspect of cryptocurrency it is the same. What I want to say is that with the decentralized system all keys are known by only you when makes security over here very tight and the system is so good in a sense that it is difficult for hackers to get into the system more unless Lin the centralized system we have been hearing a lot of hacked cases on their system.

And also decentralized system users can can transfers at any point in time and at anywhere they are.Is it day, night whatever transactions are always made but with the centralized system transactions are made at a particular time not all the time.

Again decentralized system users have that chance to go check up on his or her investment at any time without the involvement of any management and also any amount of transactions can be done by the users alone at any point in time if only that kind of amount is in your account wallet.

To end decentralized system have something that we called transaction history which keeps a record of all transactions you have made since day one and it can also be seen by other users and mostly the transaction charges taken are not much as compared to the centralized system.

WHAT AFFECTS THE VALUE OF CRYPTOCURRENCIES

A lot of stuff affects all cryptocurrencies either in the good way and in the bad way and below are some key elements that affects cryptocurrencies.

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SOCIAL MEDIA

Social media is one the main factors that affects the value of cryptocurrency in a good or bad way that is it been risen or fallen.Am saying this because I witnessed something like that on the 12th of this month when our Dogefather Elon Musk posted on his tweet that Tesla can now be bought with bitcoin and just within some hours time the price of bitcoin rose from an amount of about $39,000 to an amount of $46,000. Just last week the same Elon Musk again made a tweet that Tesla can’t be bought by bitcoin anymore, as at that time bitcoin was around $55,000 and within some hours it dropped to an amount of $49,000.

THE HIGH DEMAND AND SUPPLY

The high demand and supply of cryptocurrency affects it a lot because of a huge number of people start to invest in a certain cryptocurrency surely the value of that cryptocurrency will increase and when the number start to reduce is the same way the value is also going to reduce. Let me just give you a brief example like bitcoin as at the time bitcoin was brought into the system that was in 2009. The price of bitcoin was very low but currently because everyone is now into bitcoin the price is has now increased hugely.

REASONS WHY WE CANT ALL BE MINERS

I will like to show you a clear view of what mining is before raising up my reasons why we cant all be miners.

MINING

Mining is simply the procedure involved in manufacturing any cryptocurrency. A very good example of a currency that can be mined is Bitcoin. This process is done by the use of super computers because there is the need to find solutions to mathematical problems before it can be mined successful and also wth cryptocurrencies,transaction records are kept saver during the mining process.

Let’s now know the reason why we cant be miners :

1.The miner should be thought more about cryptocurrency and it’s algorithm that is how it is solved and how it works before starting to mine on his or her own. And also in some countries as we all know mining is not allowed.

2.Mining also involves this type of super computers which are very expensive and not everyone can be able to purchase them.If not those kind of high post machines to mining can’t be workable.

3.Maintaining of those high power machines is very difficult because when there is a fault in the machine, it needs software engineers to work on it and if you can’t get them or you have no money to pay them mining can’t be possible.

4.The kind of electricity those machines consume is too much. So if you can’t be buying electricity to power up the machine it means you buying the machine is useless.

WHY TRANSACTIONS IN CRYPTOCURRENCIES ARE MOSTLY TERMED AS TRANSPARENT

Generally when we talk of a transparent object, it simply means that one can see through that object Sosa the same way in cryptocurrency when we talk of transparent it means everything on its platform is not hidden and everyone can see what happening on his or her fellow account. Although its transactions can be seen by everyone but no one can do any transfer on your account except you. A good example is on this our great platform when I transfer Steem to anyone who also have a steemit account, everyone else on this platform can see that transaction I made. But assuming it was on a centralized system only the user can see his or her transaction history but the rest it will be blinded to you.

MY COUNTRY GHANA AND ITS DEVELOPMENT WITH CRYPTOCURRENCY

Currently the development of cryptocurrency in my country Ghana is very poor because no one uses any cryptocurrency to buy anything over here. So these makes a lot of people not to know anything about it and also the only cryptocurrency I can say a few know about is bitcoin. Even with the bitcoin they don’t know what is it and what it is used for they only hear the name. This is happening in my country because the government has not given the order to accept trading of bitcoin in my country but in the near future am hoping and I know it will be dominated over here. We are trying our possible best promoting steem it in my country and with this platform most of them will learn and get some knowledge about cryptocurrency.

CONCLUSION

In brief, I will like to say I really enjoyed the lecture a lot and I can say this lecture was one of the great lectures for this week. I also learnt a lot especially on ‘Learn about cryptocurrency’.

Thank you very much professor @levycore for that wonderful lecture and May the good be with us and bless us all.