[ SEASON 2 | Week 6 ] Steemit Crypto Academy Homework Post for @levycore | Learn About Cryptocurrency |
Hello friends .... !!!
Back again with me Ichsan Angga P at Steemit Crypto Academy Homework.
Today I will finish the homework from professor @levycore.
The topic that I will choose to discuss from the work given by the professor @levycore This week's assignment is about Learn About Cryptocurrency
What is the fundamental difference between Cryptocurrency and the conventional financial system?
Cryptocurrency is a digital asset formed on the blockchain system, Cryptocurrency is a decentralized digital asset, which means that the power is completely in the hands of the owner without the involvement of a third person, all your transactions do not need a third person because they will be recorded automatically. with the blockchain system. Whereas conventional currencies have a centralized system, meaning that the power and transactions you make still need a third person as an intermediary for the transactions you make, everything that regulates is the bank system, not in your hands completely.
Here are some other differences between the Cryptocurrency system and the system at conventional banks, namely:
Cryptocurrency is a digital asset that is decentralized, which means that the right is entirely in the hands of the owner without any involvement with other people. Meanwhile, the conventional banking system is centralized, which means that the control is in the hands of the Bank itself.
In Cryptocurrency the transactions that you make will be recorded on the blockchain system itself so that all transactions you make are kept strictly confidential because you fully control them. Whereas in the Conventional Bank system the transactions that you make will be recorded by the Bank and the government, so the confidentiality of your transactions will be tracked by the bank, because they have a complete profile of you.
In Cryptocurrency, the required transaction time is really very short, you could say in just seconds, and you can make these transactions all over the world in a short time. Whereas in the conventional bank system, to make transactions between countries it will take a long time because it requires a process with the existing system in each bank, then your funds will be sent between countries.
In Cryptocurrency they have a system in their digital currency with a system that limits the number of spreads of the digital currency, for example, the supply of digital Bitcoin assets today is only 21 million coins circulated. Whereas in conventional banks, the amount of money in circulation has no limit, or can even be said to be infinite.
So those are some of the differences between existing crypto systems and conventional banking systems
Why is a decentralized system needed ?
Several reasons why a decentralized system is needed, including:
The decentralized system has a very fast transaction speed, even transactions between countries are also easy if we use a decentralized system
A decentralized system gives full rights to us the owners of digital assets, no one else controls the assets that we own.
The decentralized system does not have transaction operating hours, which means that whenever and wherever you can make transactions, in contrast to conventional banks at 10 pm and above you can no longer perform transactions.
A decentralized system has security that is said to be quite high because it uses a blockchain system and uses 2FA authenticators. different from conventional banks where they can manage the assets that we have, because they also know the password on our account.
Decentralized systems have the main advantage, namely, all rights to your assets, you yourself manage them, all your transactions can be carried out without the need for a third person to move to continue transactions or to supervise your assets.
What affects the value of cryptocurrencies ?
The following are some of the things that affect the value of cryptocurrency, including:
The higher the volume of buying and selling transactions that occur, the higher the price.
The emergence of good news on cryptocurrency assets will have an impact on the price of these assets, and vice versa, if bad news appears, the price of cryptocurrency assets will decrease.
The world's rich investors and people also have control over the ups and downs of cryptocurrency asset prices, how not if one rich person makes transactions with a nominal amount of millions of dollars, then the number of these assets will be much reduced and cause these assets to be scarce, then automatically the cryptocurrency assets will be experienced a price increase.
The transaction cycle rotation of cryptocurrency assets also makes their value even higher, because if the asset has a rapid cycle between buying and selling, it automatically becomes an asset that many people enjoy and are interested in, then the selling value of the asset will also increase.
Why can't everyone be a miner ?
Cryptocurrency mining is where bitcoin is processed using several sophisticated tools to mine Bitcoin, this bitcoin mining process uses an internet network that is connected to the blockchain system where when we mine our computer or device we will work to solve the computerized language, which then when you successfully solve the language, you will be rewarded with Bitcoin. Why not everyone can become a bitcoin miner, because it requires expensive hardware, so only a few rich people can do bitcoin mining, and to do mining we need to learn from the experts, because mining requires knowledge to mine bitcoin.
Why can cryptocurrency transactions be called more transparent ?
Cryptocurrency asset transactions are said to be very transparent, because Cryptocurrency assets use a blockchain system, where on this blockchain every transaction that occurs will be recorded on the system, transactions that have been recorded can be seen by all people around the world, but they can only see it. Of course, because all transactions that have been recorded in the blockchain system cannot be changed or even erased, this is what causes the blockchain system to be superior and more transparent than a centralized system, which can be changed and traced by a third party who acts as a manager.
The beginning of the cryptocurrency appeared on October 31, 2008, which was created by Satoshi Nakamoto, over time the cryptocurrency was not seen by people for several reasons, but Satoshi Nakamoto managed to prove with the system he created using the blockchain system to date Satoshi Nakamoto managed to get the world very interested in cryptocurrency.
Until finally cryptocurrency entered Indonesia in early 2013. Which when cryptocurrency appeared in Indonesia this was a very foreign thing to people in Indonesia, even there were only a few cryptocurrency exchanges in Indonesia at that time. In fact, selling cryptocurrency was very difficult in Indonesia. How could it not be new, even in Indonesia, maybe only a few people know and there are only a few places to buy and sell cryptocurrency at that time.
Cryptocurrency in Indonesia is slowly starting to have a name, which every year the cryptocurrency is starting to be liked and in demand by Indonesians, and even there are many cryptocurrency exchanges or trading places that have emerged in Indonesia, so that cryptocurrency is increasingly recognized by people in Indonesia. Until finally at the end of 2016 and early 2017 cryptocurrency became a booming in Indonesia, and until 2021, the development of cryptocurrency in Indonesia was very rapid and so in demand by investors and even wealthy people in Indonesia.
Conclusion
The conclusion regarding this task is that the difference between the cryptocurrency system and the conventional bank system has a very different system, because cryptocurrency adheres to the decentralized Blockchai system, has a higher level of security and is more transparent when compared to conventional bank systems, and also regarding developments. Cryptocurrency in Indonesia started from the emergence of cryptocurrency in early 2013 which was very foreign to the public until in early 2017 it became an asset favored by Indonesians to this day.
Last word
Enough of the tasks that I have completed this time regarding Learn About Cryptocurrency, I apologize if my post is still far from perfect and there are still many delivery errors that I have given, let's fix it together through your criticism. build in the comments column.
Thank you to all of you who have read my post, I hope my post can be useful for all of you.
Regards
@ichsananggap
I think this is unfair, professor @levycore , the person who you have said plagiarism is still allowed to post this and has not received punishment from @steemitblog ,@steemcurator01, @steemcurator02, @endingplagiarism .
Well done
More so because of its decentralized nature and open transactions.
Remark:
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