Steemit Crypto Academy S2W1 - How Cryptocurrency has shaped the financial Realm. What is Its Future? By@gidsbrown

Image edited on Canva

Greetings to this great family. hope everyone is just doing well? Today I am privileged to join this great community and as well participate in the current contest that has been established by the engagement team. although this is my first time participating, so I will be dropping my entry publication as this contest demands.

---

---

GIVE AN OVERVIEW OF CRYPTOCURRENCY

source

The word cryptocurrency began in the year 2008 when we noticed the dawn of the digital currency in 2009. It was said that the founder of the first cryptocurrency is said to be Satoshi Nakamoto who was considered to be an anonymous individual. and he was the first person to have introduced cryptocurrency to the world, and this cryptocurrency is the top digital currency in the world which is the bitcoin.

The digital currency was built on a decentralized system where transactions can be carried out without a third party. at first, when it was invented in 2008, it had no value and many people refused to invest in the bitcoin as at then but in the year 2009, the bitcoin attained a little value in price and some investors decided to invest in it from that moment, the bitcoin price rose so well and amount to the greatest all high in price which was $60k. it was after that moment when the bitcoin gained value that we noticed other coin currencies coming out from the bloom and dashing into the digital currency world.

But there are certain issues regarding this currency, and one of these issues is that most countries do not agree with the cryptocurrency, and some view this currency to be a sort of fraud. also as though this currency does not have any physical form, some people do not consider this currency to be real ad true. and that is why the currency is yet to get to its full potential. while in some countries it is well accepted and randomly used.

CERTAIN COMPARISON BETWEEN CRYPTOCURRENCY AND OTHER CONVENTIONAL CURRENCIES

source

I will be showing some comparisons between the digital currencies and other conventional currencies in detail, especially in a tabular manner.

Cryptocurrency	Conventional Currency
- The cryptocurrency I not accepted in all countries because certain people consider this currency as a scam and hence do not want to invest in it as though it does not possess a physical form and is considered worthless	- While the conventional currency is widely accepted in all countries as though it possesses a physical form and as such users consider this currency to be real and widely accepted by all as though it is a country's government-issued currency.
- The cryptocurrency as we all know operates on a decentralized system and s such, transactions are carried out regardless of the amount or number of transactions a user wants to execute, there is no limit to making transactions, that was the initial idea in creating and introducing this currency and as such, users that own certain currency are often in possession of the keys to their asset as though they are not answering to anyone because there is no authority governing this currency.	- While the conventional currency is governed by the government and banks, this is a result of the currency being developed on a centralized system. so users do not have a say over transactions they want to carry out. there is always a limit to every transaction a user is liable to execute per day.
- The digital currency is often kept as value as though it can not be touched, and then it is safely locked and sealed as encryption for it not to be tempered by a third party	- While the conventional currency possesses a physical form and can be touched and felt.
- The digital currency can not be liquidated and withdrawn from your wallet as cash because it is not touchable as though it has no form at all.	- While the conventional currency can be liquidated and withdrawn from the bank and it been given to you in form of cash.

EXPLAIN THE DISTINCTIVE INNOVATIONS OF CRYPTOCURRENCY AND ITS DOWNSIDES.

source

There are wonderful characteristics that digital currency possesses and those characteristics are the reason why most investors are still pumping their money into the cryptocurrency environment. some of these characteristics are,

• MAXIMUM ENCODING SECURITY - The cryptocurrency is better in this manner because it gives maximum security that renders protection to users' funds in their wallets. this is lacking in the centralized financial institute, they do not have this criterion and that is why the cryptocurrency is best and helps users keep their assets intact.

• FAST TRANSACTIONS - This is also a nice characteristic of cryptocurrency. when making a transaction, the user need not worry because, a few times, the transaction will be revealed as successful. it does not take time at all. with it fast transaction, one can execute a transaction to another user be it that the user is in a far location or near, the asset will get to the user's wallet in a short time. so the transaction speed of cryptocurrency is very fast.

• DECENTRALIZED SYSTEM - The cryptocurrency was developed on a decentralized system and as such, it has no authority controlling it. with the decentralized system, users can perform transactions as many as he or she wishes to. there is no limit to the making of transactions. we do not see this in other financial institutions, and that is why many people choose cryptocurrency over other centralized financial institutions.

A FEW DEMERITS OF THE DIGITAL CURRENCY

Digital currency also has certain demerits which I will only be pointing out a few, and they are.

• IT IS GENERALLY NOT ACCEPTED - It is so sad that the digital currency is not widely accepted because most countries still consider the digital currency to be a sort of scam activity and that is why it is not generally accepted as some country's government has considered this currency unwanted and banned.

• INSTABILITY IN PRICE - In cryptocurrency possesses price instability issues as though it tends to drop and rise in price at any given time. so this is a disadvantage as users get to purchase this currency at a high rate and within a certain timeframe, the price may drop drastically in no time. so this is a disadvantage regarding the cryptocurrency asset.

• TRANSACTIONS CAN NOT BE REVERSED - When one sends a certain asset to either a fake or incorrect wallet details there is no retrieval process to get that particular asset back, so when it is transferred and did not get to the wallet selected because of the wrong wallet detail it does not come back to the wallet it was sent from and that is the end of that currency that was sent.

HOW DO YOU THINK MAJOR PROBLEMS WITH CRYPTOCURRENCY CAN BE HANDLED? LET THIS BE A RESPONSE TO THE DOWNSIDES HIGHLIGHTED EARLIER.

We can as well tackle some of these problems when the following suggestions are being put into consideration and they are seen below.

• CRYPTOCURRENCY SHOULD BE LEGALIZE IN ALL COUNTRIES - If cryptocurrency is accepted in all countries it will be better and we will then improve and bring light to the cryptocurrency platform. it will assist the government to get read of money looters and with the cryptocurrency, we will notice a breakthrough in the economy.

• ASSET RECOVERY - Just as I have highlighted earlier, there should be a process whereby one can retrieve certain assets sent to a wrong wallet, just the way the bank can trace money that has been sent to a wrong account. provided that it is the wrong wallet and it never got into another wallet, then for the asset to hang in the air, there should be a way to get it back to the original wallet it was sent from.

• STABILITY IN VALUE - There should be a way of balancing the purchasing and selling other to stabilize the price. if there is a high sell-off of a cryptocurrency, the value of that currency will keep depreciating and in the long run, notice that a price at $4 comes down to $2, with this scenario the value of the price will be lost, and if possible the coin will be dumped when we notice a high sell-off of that coin. so there should be a way of balancing the price of cryptocurrencies.

DO YOU BELIEVE IN THE FUTURE OF CRYPTOCURRENCY?

The digital currency has a brighter future, I tell you. we are yet to experience a great future of cryptocurrency, for the fact that the greatest currency got high to $60k then there is hope that we will still notice a higher high. especially when cryptocurrency is finally legalized in all countries, it will as well change the world for good.

So with this currency showing certain attributes of great potential, then we are assured of a wonderful uptrend regarding the cryptocurrency. and as other coins get to jump into the crypto environment, then I tell you that we are just starting, the cryptocurrency will be the top currency in time to come, I believe.

---

ANY RECOMMENDATIONS

---

It is a good thing to invest in crypto but always minimizes your risk, do not be ignorant and chose to follow or chase after trends. in as much as the cryptocurrency is profiting users, we ought to be wise and only risk money we can be able to afford. do not borrow money to invest in cryptocurrency. make sure the money is yours and one you can be able to risk. but in a nutshell, cryptocurrency is a currency that is profitable when you invest in but be wise.

CONCLUSION

Thank you all for going through my publication, I duly hope that I have provided the needed answers to the above questions. I will like to invite @samuelebuka, @skilocy, and @solexybaba to participate too.