QUESTION 1

What Is The Fundamental Difference Between Cryptocurrency And The Conventional Financial System?

I'm going to tackle this question by giving the phrase "conventional financial system " a simpler term, like "traditional money". In other words, I'll be giving the difference between crypto and traditional money.

Traditional money in the crypto world is called fiat currency, examples of these currencies are dollars ,euros ,naira ,pounds, etc. While the crypto currency ranges from bitcoin to alt coins(alternate coins) like ; ethereum,litecoin , steem , tron, dogecoin ,etc.
Bitcoin, which was the first cryptocurrency to accommodate cheap and secure peer to peer movement of finance has changed the world today, mainly from the stress of dealing with intermediaries.

There are various differences between cryptocurrency and the conventional financial system, but the basic difference is the fact that the cryptocurrency functions with a decentralized system, which makes it free from the following:

• Outside control ; banks don't control transactions ,and third parties are not needed for transactions to take place.
• They are not under the backings of a central government, this destroys the interference of the government.

Another striking difference is that the crypto currency is a global digital currency and can be used all around the world, where as the fiat currency is localized.

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QUESTION 2

Why Is A Decentralized System Needed?

Before I go ahead to talk on the need of decentralized systems, I would love to show the difference between centralized and decentralized system by definitions.

• CENTRALIZED SYSTEM
  The centralized system in simple terms can be defined as the client/server system, where client network or servers are linked to a central server, so in this case the central server is in control of transactions made in the system.
  Its a third party involvement kind of system.
  In this system ,if the central node fails ,every other node fails as well.
• DECENTRALIZED SYSTEM
  Nodes can be computers ,mobile phone ,basically what you use to perform transactions. So in a decentralized system each node has the ability to make decisions for themselves without depending on a central body. As opposed to the centralized system ,if a single node fails in this system it does not affect the whole system.

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After careful deductions, it is concluded that decentralized systems are needed for various reasons, thus:

• In a decentralized network you do not need to know anyone, and the fear of trusting someone as regards to transactions will not be felt, because in the system you will have a copy of your data and transactions.
• In a decentralized network, it is difficult to experience system failure because there won't be massive reliance on a single server.
• Decentralized system tries to reduce the ability of participants to gain control over themselves in ways that might affect the system adversely.

QUESTION 3

What Affects The Value Of Cryptocurrencies?

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• Cryptocurrency as well as everything else in life ,is affected by the law of demand and supply. I define this law as: the greater the demand on a thing is the higher the value rises. So demand is a major factor that affects the value of
  cryptocurrency.
• Another law that might significantly affect the price of cryptocurrency is when the demand for that currency is higher than the supply, the rate at which cryptocurrencies are mined slows down with time.
• Popularity of a cryptocurrency can affect the price of others, this is known as competition. Price of a cryptocurrency will reduce as competing cryptocurrencies increases.
• Bitcoin for example now has a complex-computation-of-mathematical-problems mining system that all its miners try to solve. The more the miners , the more difficult it becomes to solve the complexities of mining, which makes it expensive.

QUESTION 4

Why Can't Everyone Ba A Miner?

Firstly,we need to understand that mining means to gain new coins by using computers to solve some complex mathematical problems, like cryptographic equations to be precise.
So you get free cryptocurrencies by mining, But for you to be a miner of bitcoin for example, there are certain things you will need to consider first:

• There is a huge financial risk involved in mining, equipment for mining bitcoin for instance are very expensive. It can be heartbreaking to spend so much on mining equipment and end up making no return in investment
• Mining requires so much energy usage ,which has brought great concerns about it's impact on the environment. This is special to systems that uses proof-of-work.
• Mining of cryptocurrency is actually illegal in countries like Egypt, Pakistan, etc. So people in such countries won't be able to mine.
• Based on the energy consumption rate of mining, if everyone gets involved in it, it might lead to a large scale global catastrophe ,as we might return back to the stone age for power failure.

QUESTION 5

Why Can Cryptocurrency Transactions Be Called More Transparent?

Cryptocurrency transparency can be said to be the ability of a blockchain to allow anyone join the network and have direct access to all informations in that network,especially in tgransactions.

Well, i agree with the fact that cryptocurrency transactions are more transparent, because i get to see all my transactions on the blockchain, they are well traceable. This is not the same for all banks if we are to compare, issuing banks are practically the only ones that can trace the history of transactions of customers.

QUESTION 6

Explain How The Development Of Cryptocurrency In Your Country?

I am a Nigerian, and Nigeria is known as the leader in bitcoin trade globally. And more trading in crypto happens in Nigeria almost more than other countries of the world. Nigeria is known as the country in the whole africa that is the largest bitcoin market

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Cryptocurrency has been so traded in Nigeria that it was banned in March of this year by the central bank of Nigeria . Nigerians resulted into trading with other currencies because of the continuous decline in value of the Nigerian naira, see news here

CONCLUSION

In conclusion, the world is tilting towards digital money slowly, so the topic of cryptocurrency cannot be over emphasized. Although the exchange rates are quite volatile which makes it risky to trade in them, it is still very easy and portable. Cryptocurrency would necessarily become a widely used currency when it gains acceptance around the world. Presently ,nations are already beginning to adopt the idea of cryptocurrency and are developing indigenous cryptos

Crypto currencies are very much useful in our world today, it provides the ability for nations to have alternatives when it comes to currency and has brought about economic transformation