Steemit Crypto Academy Season 2: Learn About Cryptocurrency
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What is the fundamental difference between cryptocurrencies and the conventional financial system?
While we know that digital cryptocurrencies only exist in an open book, a database that works with a network of interconnected blocks where the information is stored and processed, this allows the currencies to move freely from point A to point B with complete security and speed at the time you require it, they are not controlled by a duel unlike centralized fiat currencies that are governed by a financial entity governed by a government of a particular country.
Decentralization of Cryptocurrencies
It has led many to have total freedom in terms of movement of assets at the time they require it without an authority to control them oneself is fully responsible for all its assets or capital leaving aside the banks, financial institutions or governments.
Personal data security:
Decentralization:
Decentralization has allowed transactions to be anonymous unlike banks that use fingerprinting, photos and others in this process no one knows the details of the user who is transferring but they do know the transactions from one account to another so they are publicly verified this means that everyone can see the transactions but not the user data.
Centralized:
On the contrary in the centralization with Fiat currency these are visible inside the financial system but people outside will not be able to see the personal data nor the transactions made from account A to account B. If an account is stolen and the money is transferred from one account to another the data of that account can be traced and possibly recovered with a court order in such a case it is that way.
Decentralization
As for the transfers you can do it at any time and place where you are 24 hours a day, 7 days a week without having to fill out paperwork or leave your comfort zone, you can move freely whatever you want to invest, make purchases and much more without so many questions, plus the commissions are very cheap even if you transfer with TRX or another currency that gives us the ability to make transactions at low cost of gas.
If you create or make an erroneous transaction and it becomes effective for any reason you will not be able to recover those assets because the transfer is sent to the wrong address by mistake, then we must be cautious when executing this type of transactions to other wallets.
Centralization
As for the centralization to be able to make a transfer you must go to the bank if it exceeds the limits established by the financial institution in addition to the fact that they have all the personal information and data of all customers, they are limited and a little tedious abecés can freeze accounts to update some data and this is very tedious for users I say this because it has happened to me and it is my personal experience that this happens. instead with the other decentralized method this has never happened to me.
Why do we need a decentralized system
More and more investors are joining this great global ecosystem now more than ever the system is working simply because we are free to do whatever we want with our capital that is how it should be really simply because it is our capital not a third party, the reasons are obvious we do not ask permission to transfer from one place to another or make any investment there is no third party we do not accept any terms or conditions that make us lose control of our goal.
There is no barrier as such in decentralization because it is a totally different world from centralized systems such as banks and international financial institutions that always have some obstacle to achieve an end in addition to the high commissions with this decentralized system you can interact with any user in the world at the time you want is that fast.
In terms of security, decentralized systems work with interconnected nodes that need one or more verifications to send your assets are not hosted on a single server but in millions of them which makes it very difficult access to malware is very safe.
What affects the value of cryptocurrencies?
Actually besides the big investors that shelter their money to make it grow constantly and manage the volatility of the market in their favor other factors that I see affecting the value of a cryptocurrency is the big influencers like what happened recently when elon musk announced that he is going to receive BTC so that his teslas cars can be bought. The BTC went up very fast with the momentum that existed at that time, some time later Elon Musk himself said that he will not receive any more BTC for the sale of his cars because of the high rate of CO2 that is being released into the atmosphere and the BTC went down out of fear.
The fear or the feeling of a market is another factor that can affect the value of a cryptocurrency when there is social fear nervous sales occur which lowers the price of an asset and many investors to see this we can see it in a way more in our favor as this allows us to buy more coins of this also depending on the potential we see within the ecosystem.
Why can't everyone be a miner?
To be a miner you need a high investment because not everyone has such an exorbitant amount of money. There are thousands of ways to mine, all of them always with a different complexity as the mining population is growing, the difficulty of mining is more difficult each time, so more advanced equipment with greater processing capacity is required to solve faster the complex mathematical calculations that are subjected 24/7, therefore professional technical staff is required to ensure the best performance of the equipment.
Main characteristics to be able to mine
Economic costs for basic maintenance services
Economic expenses for basic services such as electricity and water
Technical service specialized in the software
Determine a work space with the appropriate equipment for the environment, such as climate control.
We have to lead with the rules of countries such as Venezuela that we must have a special permit not everyone can be miners even if we want to simply because of the high cost that this requires also by the high volatility in the market and the capital to invest at the right time.
Cryptocurrency in Venezuela:
In my country Venezuela the laws of cryptocurrency only favor the current government as these place many obstacles and it is very difficult legally to have a mining farm if you are not political it is almost impossible that you can not legally mine, as for black market there are many ways to mine currently in Venezuela and it is very palatable by many foreigners because of how cheap electric power is in my country.
In 2018 the Government of Venezuela through an official gazette and the laws article 9 of the Bolivarian constitution dictate that a new cryptocurrency called Petro could be backed with national oil under article 302 of the Bolivarian constitution of Venezuela is an oil shaped token that according to the laws already mentioned can be used to create transfers freely on the web and interact legally with all investors in the world if required.
This petro can be bought but not sold within the platform that hosts the PETROS wallet currently in Venezuela which is a very big disadvantage for everyone.
Conclusion:
Thank you very much for always staying active in this community we talk about many wonderful and very educational topics so that everyone can know what are centralized and decentralized currencies for also why we can not all be miners the best answer is because we do not have the capital nor the space and time available to do so there are large companies that through analysis and calculations are dedicated to mining. also I want to thank and a greeting to the teacher and the whole community that today is growing more and more. in the cryptoacademy.
Hi @gema777 , Thanks for submitting your homework
Feedback: You have completed every point but, You are still lacking in explaining each point ,next please do more research for your post
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@levycore Professor I think that this note is not for my homework since it explains everything exactly as it is sure that there must be a confusion, please review it and again sorry for the inconvenience.
HI @levycore, greetings professor I have seen that you ask me to explain the teraea with more details but I see that I did not miss any can you tell me what was missing as an example I have seen assignments that you have reviewed worse than mine with more grade I do not understand what is going on can you please take a look at more detail please?
@levycore in my opinion as a student you should help your students, with data that help to enrich their knowledge, we are supporting the teachers of the academy, the teachers should take into account all the work we do hard to be part of this work. for me it is a great honor to always do the tasks but sometimes I feel a little bad because I feel that they do not value our effort. thank you very much professor I hope you read it and I apologize for all the inconvenience caused only my humble opinion my respects.