Hello amiable steemians, I am delighted to be participating in this week's homework given by

Professor - @levycore

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

There are many differences that can be spoted between the Cryptocurrency monetary system and the conventional financial system(Fiat). These include

S/N	Fiat	Cryptocurrency
1	It can be touched, physically carried about and is generally accepted	it Can only be used digitally and it is not generally accepted
2	It is operated on a centralized system	It is operated on a Decentralized system
3	Banks and government act as middle Men in transaction	There is no third party in transaction
4	Transactions are regulated by government policies	Transactions are not regulated by anybody
5	Minimum security as user asset is stored in a centralized system	Maximum security as user asset is stored in a decentralized system
6	Huge transaction charge/fee	Little or no transaction charge/fee

Why is a Decentralized system needed?

Today in the world, people are gradually moving to the Cryptocurrency monetary system for some reasons, these include

No transaction charge

In the conventional financial system, the cost of transacting money is either high or stressful. For instance, to pay someone for service rendered, you have to either leave your home to some stipulated place to make payment which could be stressful or you could choose to transfer using mobile banking app which is going to charge inconviniently some fee. In Nigeria, For debit card owners, they are usually charged a fee for card maintenance monthly. All these inconvenient charges are put to a hault in the Cryptocurrency system as one could easily complete a transaction with ease without incurring service charges and at his own convinience and time.

Freedom from Government Influence

Some people love the fact that in their crypto wallet, they are the only ones that can asses it and the government or any other authority does not regulate or affect their asset.

Maximum security

Most crypto wallet owners enjoy this feature of the Cryptocurrency system more as their asset data is stored in the blockchain technology and so is impossible to be hacked or manipulated and makes it impossible for their asset to be touched without their consent. That means no authority can declare their crypto wallet frozen.

What Affects The Value Of Cryptocurrency?

Generally, there are many things that influence the price of Cryptocurrencies. They include

Ratio of Supply to Demand

When there is an increase in the demand of a particular Cryptocurrency and at the same time, there is a low supply of that Cryptocurrency, there will surely be a hike in the value of that Cryptocurrency and vice versa. So with this, it is understandable how the ratio of supply to demand of Cryptocurrencies influences it's value in different ways.

News

Crucial information from analysts of Cryptocurrencies and influencial persons could alter the value of Cryptocurrencies in a positive or negative trend. For example, Elon musk the CEO of the Tesla Firm on Wednesday 12th may, 2021 stated on his Twitter handle that his firm will no longer accept Bitcoin as money for Tesla products due to environmental concerns. This brought about a sharp drop in the value of Bitcoin. With this understanding, one can see that News from influencial persons could alter the value of Cryptocurrencies.

Why Can't Everyone Be A Minner?

It is not possible for everyone to be a minner for the following reasons

Computing hardware

Minners have the need to posses the current hardware to meet up with the bulky requirements of mining successfully. Minners require some specific hardware which could be dear. For instance, a minner has to pay over $1,500 to acquire the contemporary Asic Mining rig(per computer). This in turn discourages some people as they cannot be able to acquire such equipment.

Technical know how

Not everybody is knowledgeable enough to involve in the activities of mining. While some people are better at mining, some other people are just better off trading and holding Cryptocurrencies.

Cost of Power

The key operating expense is power. Since the mining tools require terawatts of power for a successful mining, the cost of power supply cannot be neglected. This very high power cost as well discourages some intended miners.

Why can Cryptocurrency Transaction Be Called More Transparent?

The Blockchain technology gives room to maximum privacy level by making sure that transaction data is distributed strictly amongst the concerned participants thereby eliminating the need for a middle man or third party.

Despite the maximum privacy level contained in the Blockchain technology, there also exist a great measure of transparency in it. The Blockchain entails valid ledgers and fully auditable transactions.This Ledger cannot be forged nor deleted. For data to be imputed into the Blockchain, it has to be validated and to change the imputed data would mean that every other unit blockchain will be changed. Because of this , it is not possible to manipulate a transaction on the Blockchain and also fraudulent transitions are impossible to add to the Blockchain.

The transparency possessed by the blockchain takes away the check and balance need which usually would have taken away a good measure of resources and also credible manpower.

Explain How The Development of Cryptocurrencies In Your Country

The Central Bank of Nigeria (CBN) on February 5th 2021 gave directives to financial institutions and banks to stop and donnot engage in the exchange, payment and trading of Cryptocurrencies.
Further more,the CBN gave instructions to financial institutions and banks to discover entities or persons who are involved in Cryptocurrency and shutdown their account.

The Nigeria’s securities market regulatory body has stated recently on 22nd April, 2021 that it is in alias with CBN to provide a solution to the Nigeria's decline in the digital asset industry. The Exchange and Securities Commission stated that the current ban of Cryptocurrencies by the CBN had brought about an abnormally in Nigeria’s digital currency industry and is looking forward to working with the CBN to lift the ban on Cryptocurrencies and then focus on improving Nigeria's digital currency industry.
At the moment, the only currency that can be used to buy and sell in my country is the Nigerian Naira.

Conclusion

• The difference between Cryptocurrency and conventional financial system so many but the striking difference is the use of blockchain technology by Cryptocurrencies.
• Also, the need for a Decentralized system cannot be over emphasized as the pros outwit the cons.
• Major sources of influence upon Cryptocurrencies such as news and ratio of supply to demand of the Cryptocurrency must not be overlooked by Cryptocurrency traders and holders as it could help them determine when to hold and when to trade.

Thank you professor @levycore for such an expository lesson.