In the following research we will talk about the fundamental differences of cryptocurrencies, mining and an example of how cryptocurrencies work in my country legally speaking, thanks to these slogans we will be developing today's task. What are cryptocurrencies really for? Are they safe? Do they generate any impact on the world economy? We will see all this and more below.

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

Currently cryptocurrencies are developed in a set of interconnected nodes that carry the information and is recorded in a digital ledger forever, cryptocurrencies have been quite striking over the years by investors are fully decentralized have no blocking and are fully transparent high security and efficiency.

Its own decentralized nature helps to maintain a stable ecosystem safe and anonymous by which we mean that there is no authority or boss that monopolizes the decentralized ecosystem all working to improve the ecosystem on the contrary in centralized systems the money is controlled by the owners of the bank have full access to it and they are limited with documents and schedules which makes it a bit more complicated to use them plus you have to leave all your documents and addresses and you never know if you are really sure you always distrust everything so it is a big disadvantage to have now our money in any bank I personally don't trust banks.

However I like more the decentralized system because it allows us to expect anonymity which means that no one knows our identity of course the transactions are stored in the block network in the blockchain but do not know the identity of the people who really made them in this way we can keep our anonymity and transactions are highly secure and reliable.

A very clear example of anonymity

If for example I send 1000$ in ETH to a friend to a totally reliable address, it will arrive in a matter of minutes, so if someone wants to see the transaction he can do it but nobody will ever know who I am and who my friend is, you understand? everything is stored in the open book of the decentralized network, it is something very easy to explain and understand.

High speed transactions

If for example we want to transfer money from one country to another we can do it, we just have to look for the best options, currently there are infinite shares I will say one that is the cheapest to transfer TRX is a very easy currency to send and receive, its high speed and low cost of gas make it ideal to create huge transactions of money or what you want to send at very low cost without intermediary and without problems.

We must also talk that the most relevant features in decentralization are the transactions and the total anonymity of them but there is a problem there malicious people who use this type of cryptocurrency to work their illegal items so many countries currently have them banned or commercial use of them also governments take advantage of these activities to take them as excuses and thus block the cryptocurrency to expand the great monopoly they have of their centralized financial networks.

Why is a decentralized system needed?

There are many factors that indicate the need for a decentralized system

We do not need permissions to be able to manage our assets when we want where and how we want, there is no authority to control us, any user who has a digital currency can access it at any time and make use of it.

There is no determinant barrier as far as transactions are concerned the time of use and there are no limits for the use of digital cryptocurrencies, you just need to try and electricity is your wallet to start performing an action is very easy.

As for security centralization is something very important to know that all data are stored in a single data base a single server which is prone to damage and virus infections we note that this does not happen with the blockchain platform as they are a set of nodes that are applied to connect with each other all the information is recorded in some block on the network forever .it is very difficult to be affected by viruses almost impossible so security is paramount in this ecosystem.

What affects the value of cryptocurrencies?

Well we know that the volatility of the market is totally unstable and consequently the value of this asset fluctuates by many factors I will name some of them such as the environmental factor, natural disasters, wars, even a famous YouTuber with a lot of power in users by saying a few words people would run to sell or buy a certain asset.

As we know there is the sentimental analysis of the market in this we can see what we said before as the power of an influencer can lower or raise the market price ? by FEAR OR CODE there is no other words therefore we must take into account to be very aware of the social networks that they manage to see the result of what they tweet in the market analyze and then act,

As we well know some time ago a news impact the crypto world with the prohibition of Turkey of the cryptocurrency and the other was when an Exchange was closed and they left with billions of $ that also affected and what was responsible fear gentlemen fear, a man goes out there saying that he will not accept more BTC in the purchase of their Teslas cars and everyone runs out to sell that is fear. but they do not know that more behind is the understanding or someone else is buying the coins that you sold. well we know that the BTC is the currency of the future we should not worry we should follow the analysis that we already know and that we study to analyze the markets and not be affected by nonsense news. we must take advantage of this news to make money not to lose.

Why can't everyone be a miner?

Due to the high speculation in the markets and the high demand in ASIC and GPU miners the costs of these equipment are too high for people who are just starting in the crypto business so you need a lot of capital and a lot of knowledge especially in digital technology and equipment.

The high costs of energies the prohibitions or regulations of the governments imposed and more then we can not all be miner so we would like therefore there are many activities that we can do to increase our capital trading or hold etc. are some of the activities that we can do freely to increase our capital ...

Mining is the solution of complex mathematical problems for this strong equipment capable of solving these problems as soon as possible is used once the block is solved the miners receive a profit for this.

Not everything is rosy every time more and more miners are incorporated into the mining of any cryptocurrency when this happens automatically expands the difficulty of mining of this asset so that the devices with less hashing power would be obsolete.

Why cryptocurrency transactions can be called more transparent?

These transactions with cryptocurrency are captured in a block of the blockchain called open book this information is kept in multiple Nodes, each transaction information is sent once the block is solved is sent to all blocks and this information is stored in separate blocks to be stored and saved forever can be verified in the block chain when you want these transactions can not be deleted and can not be edited this makes transactions much more transparent when transactions.

The excessive use of cryptocurrencies would end the bureaucracy and control of financial institutions with users that is why these laws are implemented to curb the use of cryptocurrencies in countries that have control of the economy also alijarara a little more difficult and costly transactions that exist in centralized entities.

Cryptocurrency In Venezuela

The Petro is one of the cryptocurrencies of the country Venezuela was created in 2018 to be international transactions under Article 9 of the Constitution of Venezuela can make international transactions each petro has a value of a barrel of oil and this can be transferred through a special wallet that the government opened for this purpose where you can make transactions with other currencies such as BTC the ETH, and others are only allowed to buy with these crypto but not to sell the Petro so there is much controversy and little information from the government for users some say it is a Scam others say it is to launder the important thing is that in Article 302 of the Constitution of Venezuela clearly states that it is totally legal to trade with it anywhere in the world accepting it as an asset backed by Venezuelan oil.

Mining is totally illegal if you do not have a special mining permit which will regulate the amount of energy and internet you need to mine from must go through a kyc registry and other special registries where you will have to give besides your identity your location and that of the current miners total amount of them also you must mine in a special pool that has the national government.

Conclusion:

In the following task we talked about the importance of cryptocurrency not only as a concept but also in that it can change lives and also in the development so great that this has for the sus of people I think you should expand more the use of cryptocurrencies worldwide very soon already many companies and private financial institutions are adopting this system of echo I heard that twitter the platform of the little bird wants to adatar this type of media. So it is very important for the growth of cryptocurrencies worldwide I hope this work has served and liked to all who read and are studying like me or want to learn. greetings.

Thanks you

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