Crypto Academy Season Two Week 6: Homework Post for @levycore

Greetings everyone, I am much delighted to ta part in this week's lesson of our noble professor @levycore.

This week, we have been given a great knowledge on Cryptocurrencies, everything we need to know about cryptocurrency

I hereby make my homework entry submission to the various questions of our noble professor.

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

Cryptocurrency and conventional financial system can be well differentiated with various aspects in the world market. That is, I will be giving out the fundamental difference between these two terms with various terms.
Before going ahead, I will like to give the definitions of these two terms again.
Cryptocurrencies are currencies used for transactions but in a digital form or nature. That is, they are decentralized in nature and does not require any authority before transactions are made. But when we talk of conventional financial system which we used before the creation of cryptocurrencies, they are systems which are centralized in nature and requires authority before transactions can be made.
Now let's take a look at the difference based on these terms.

Decentralization and Centralization
As stated above, Cryptocurrencies are decentralized in nature. This simply means that, before one will be able to carry out a transaction whether the individual is sending or receiving there are not any authorities involved in the transaction process. But with regards to Conventional financial systems there are authorities involved in the control of transactions made.

Security
In terms of security, Cryptocurrencies are much more secured than that of conventional financial systems. This is simply understandable because the fact that there is no control over the assets in people dealing with cryptocurrencies there wouldn't be any situation were hacking of such assets will occur. But in a situation were there is control of the assets of individuals dealing with conventional financial systems, there are series of events where accounts of such people have been hacked.

Presence of Intermediaries
Intermediaries or it's sometimes refereed as ''middlemen'', are systems that are involved when making transactions under conventional financial systems. These intermediaries includes; the banks and other local or traditional financial institutions. Their presence in these conventional financial systems brings amount the payment of huge charges when carrying out transactions. On the other hand, there are no intermediaries present in cryptocurrencies. Every transactions made with cryptocurrencies occur on a blockchain. Individuals involved in cryptocurrencies or miners as we called them do not deal with intermediaries. They do their transactions on blockchains without any intermediary or middleman involved.

Faster and Reliable

Since making or undertaking transactions in cryptocurrencies does not involve any intermediary, they are very fast and reliable. That is, at any point in time or anywhere one can able to make a transaction with cryptocurrencies. But with regards to conventional financial system since banks and other financial institutions are involved in which they have specific times of operations it's not reliable and also transactions made are not faster since they have to pass through systems.

. Why is a decentralized system needed?

A decentralized system is greatly needed because of its envious benefits. When a talk of a Decentralized system what basically it means is that, a system in which there is no any authority control. That is, in a system which is called decentralized or before it can be qualified to be a decentralized system, there is not control over assets of individuals involved by any sort of authority. There is complete freedom of assets of individuals involved in this type of system.
It is therefore needed because of the following reasons;

Security
This is a very tactical area when dealing with issues relating crypto or finance. A decentralized system is therefore needed because of highest sense of security. There has no been any situation in which a decentralized system has been hacked or anything relating to that. That is, in a centralized system where we have individuals information kept on a particular place a decentralized system does not function that way. Information or data are been kept in various areas or places called nodes which are accessible at anytime.

Freedom
A decentralized system is needed also because of the high freedom involved. That is, with a decentralized system, there is no required permission before one is able to gain access over his or her assets. That is, at any point in time at anywhere, the assets of individuals in a decentralized system can be gained accessed to.

Faster and Reliable
A decentralized system is also needed because transactions made are faster and reliable. That is, no matter the hour or minute, one can be able to undertake a transaction in a decentralized system. Also, since there are no authority or intermediaries present, transactions made in a decentralized system are very quick because they will not have to pass through any system before getting to the recipient.

What affects the value of cryptocurrencies?

The value of cryptocurrencies is mostly affected by certain circumstances or situations. That is, there are various factors that affects the value of cryptocurrencies in the market.

• Interference of Government
  In recent times, most governments does not have a fair knowledge of the impact cryptocurrency can have. Some seems to see it as cyber fraud whiles others see it as scam. In a situation where by you find yourself in country like that, the value of cryptocurrencies will be relatively low. Some even go ahead to put bands as regards to those involved in cryptocurrencies. However, in a situation whereby the government is in full support of a particular cryptocurrency let's say Bitcoin, it will go a long way to increase the value of Bitcoin because most investors will tend to demand for it.

• Demand and Supply

The demand and supply of a particular cryptocurrency affects the value of it. This is because, most investors tend to study the trend of a cryptocurrency to see as to whether it needs to invested in or sold that's when he or she is holding. The studying of the trend of a cryptocurrency is mostly done with the help charts or graphs. This activity of demand and supply goes in a long run to either increase the value or reduce the value of a cryptocurrency.

• Information From Big Personality
  This factor has been the current trend in determining the price value of cryptocurrencies. As we all know the current times we find ourselves, cryptocurrencies are been controlled by the tweets from Elon Musk. Most a times anything been publish on his Twitter page
  relating to a cryptocurrency turns to affect the value of that particular cryptocurrency. There is evidence to this when recently he tweeted about he been the Dodge father. The price value of Dodge Coin saw a significant increase. There are also times where tweets were made with regards to Bitcoin which saw increase of the value of Bitcoin. This big personalities and many more such as musicians who are very influential gives information that relates to a particular cryptocurrency which affects the value of that particular cryptocurrency.

Why can't everyone be a miner?

Mining in the world of crypto is the process or act of bringing out or producing new cryptocurrencies into the crypto market. That is the procedures by which a new cryptocurrency is brought to the crypto market. Mining also involves the act of keeping records or transactions made on a particular cryptocurrency.
The people involved in this act are referred to as miners. That is before on can be qualified to be a miner he or she must have diverse knowledge of cryptocurrencies. High electricity consumable machines or computers are used in the mining process in which these machines have the capacity to produce solutions on difficult math questions since they are involved in the mining process. Also one has to have great knowledge on consensus algorithms like, proof of stake, proof of capacity, proof of burn proof of work and so on.
Looking at all these requirements for the mining process, these are the reasons as to why everyone can't be a miner.

• The cost involved in acquiring the equipment or gadgets is relatively high. Such equipment might include; ASIC and the rest.

• The energy cost involved in mining is also very high. That is, the electricity required for mining is too high and sometimes people turn to use other means of energy which goes in a long run to create harm.
• The maintenance involved in the making sure of the up fit of the equipment used in the mining process requires a high amount of fees before it can maintained.
• Mining process also requires great knowledge of consensus algorithms such as proof of work, proof of stake, proof of capacity and so on. These algorithms also deals with high amount of mathematical calculations and technical analyses. Whereby these knowledge is not known by everyone therefore is not everyone that can be a miner.

Why can Cryptocurrency transactions be called more transparent?

Since Cryptocurrencies are Decentralized in nature and are also built on blockchain, the transactions made are openly shown to every individual involved in such blockchain. Also, transactions carried out on blockchain are transparent and open to everyone so as transactions involved in cryptocurrencies.
Let's say if I make a transaction by sending some amount of Dodge coin to anyone, it will be recorded and everyone can have a look at the transaction made provided they have various tools used.
Also as Steemit Blockchain is a blockchain, transactions made are openly seen in the wallets of its users. These is clear evidence that Cryptocurrencies transactions are more transparent.

Explain how the development of cryptocurrency in your country?

In my Country Ghana, Cryptocurrency is poorly developed due to the regulation of the Government. That is, currently cryptocurrency in my country is not accepted fully but most people are involved in it knowing the benefits of cryptocurrency.

But however, some exchange platforms have the local currency of my country included. Also certain cryptocurrencies like Bitcoin is been traded in my country but not that much as compared to other African countries.

However, in the nearby future, there are plans of drafting a system of payments accepting cryptocurrencies which will help in the development of Cryptocurrencies in my country.

Conclusion

In a nut shell, I must testify to the fact that I have really enjoyed this great lesson of our noble professor @levycore. By knowledge on cryptocurrencies have been broaden all thanks to our professor.
Cryptocurrencies can therefore help improve upon an individuals life if well invested in.

Thank you very much for your attention