Hello everyone, it's nice to meet again this week, this time I will try to complete the assignment from the professor @levycore . The task this time is very extraordinary, I am very excited to do it.

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

As many people in general and of course those in the steemit crypto academy already know, cryptocurrency is a digital currency in today's mass that is used to transact online on the internet network. Of course, to maintain security and protect this digital currency, a password is prepared which is quite difficult to remember.

Unlike the conventional financial system, the conventional financial system is a system whose financial operations use an interest system, which collects and distributes existing funds to customers in accordance with the regulations that have been set before the parties from the banking sector and the customers carry out the process of savings and loan transactions. Basically, fixed interest payments are carried out as promised regardless of the profit or loss experienced by the customer.

From the two, we can know the difference where the conventional currency system has a centralized nature while digital currency has a decentralized nature. If in a conventional system it requires an intermediary to conduct food transactions in the case of digital currency this can do it directly between the sender and the receiver, these are two things that are very different between conventional currency systems and cryptocurrencies.

Why is a decentralized system needed?

With the decentralized system in cryptocurrency this gives complete trust to users. This system appears with the development of blockchain. Everything that is in this system can be directly controlled by the users in this system the users have complete freedom.

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Transparency is a major advantage that this system has, all transfers and transactions are open to all transparent people, making it an advantage and making it different from conventional financial systems, without the need for a third party in matters of this transaction gives us confidence to keep our own money because it can Direct control by the users makes decentralization important and can make people more confident in using cryptocurrency.

What affects the value of cryptocurrencies?

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There are several things that influence the rise and fall of the value of crypto, I will try to explain some of them:
1. The first may already be common knowledge by some people where the balance of crypto value is influenced by supply and demand. If the supply is high but the demand is low, then it will make the crypto value decrease.

2. The existence of social media news can also affect the fluctuations of the value of crypto. In the present, all news will first be spread through social media and that is enough impact for the increase and decrease of the value of crypto.

3. In the value of crypto price fluctuations can also be caused by the words of influential people in the crypto world. The words they put out on social media can significantly affect the value of crypto.

4. The number of existence of crypto assets is also quite influencing the value of crypto itself, this is also influenced by crypto asset holders to carry out the buying and selling process.

5. The last thing is the fear and greed that humans have can also make the price of crypto fluctuate. Where when the price suddenly rises, the crowd wants to buy crypto currency but if it experiences a little decline it will make people feel afraid and want to sell the cryptocurrency as soon as possible. this is also very influential with the ups and downs of crypto value.

Why can't everyone be a miner?

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In mining matters, as we all know, capital will be very influential, this is because the equipment needed to carry out mining cannot be equipment carelessly and also requires the best technology. It does not stop there that the experience and desire to learn to understand more deeply is quite important. Because the lack of experience they have makes some people afraid to do mining and many of them experience losses due to the lack of experience they have.

Within the mining system there are many variations provided by crypto in the blockchain protocol. There are several types of mining that are in the consensus algorithm, all of which have different levels of difficulty, for example, like Proof of Burn in this system, people who want to do mining, all you have to do is send the crypto currency that is on blockchain to an address that is difficult to reach this will result in the burning of the crypto currency. if we meet these requirements then we can do mining.

Basically, not everyone can mine the amount of capital needed, which will be the main reason for lack of experience being the reason not everyone can have an advantage. many considerations they need in terms of sophisticated equipment and technology consumes a lot of electricity needs and not everyone can afford that. Most of them do not get profit but experience losses, this causes many people to choose to quit and also do not want to try.

Why can cryptocurrency transactions be called more transparent?

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The blockchain technology system that is owned by crypto is a system that does not require a third party in the transaction process so that every transaction that occurs in crypto is more transparent. There are several other things that also make crpto more transparent, namely:

1.In crypto all transactions that are made will later be stored in a general ledger. Each identity of the coin owner will be given a code which aims to ensure the immutability of the recording of the transaction. In this case, neither the bank nor the government has any control.

2.Transaction processes that occur between digital wallets have been guaranteed about the balance of accurate calculations by the general ledger. This general ledger is commonly called blockchain transactions. The technology in blockchain aims to ensure transaction security so there is no fraud and control of other party.

3.Blockchain is a reason that this cryptocurrency can have any value. The ease of using it makes cryptocurrency very popular and in demand among the wider community.

Explain how the development of cryptocurrency in your country?

As we already know, the existence of cryptocurrency in Indonesia is very well known by the public even though there are various pros and cons in the Indonesian community and also the government. The central government even strongly objected to the existence of cryptocurrency for the first time in Indonesia. The government has firmly said that the currency that applies in Indonesia is the rupiah currency. However, the existence of crypto is still allowed to be in Indonesia.

As time goes by and the sophistication of current technology, the government is slowly starting to agree with this cryptocurrency. In 2019 Indonesia through the Commodity Futures Supervisory Agency (Bappebti) has issued a letter stating that Cryptocurrency trading companies in Indonesia such as Bitcoin, Ethereum and also Dogecoin has been registered with the Indonesian Ministry of Trade.

Then Bappebti issued further regulations regarding the cryptocurrency trading process in Indonesia in number 5 of 2019 Regarding the provisions for the implementation of the physical crypto asset market in Indonesia. In the rules that have been made by the Government there is a licensing mechanism that is needed for crypto sellers and buyers. Finally, in 2020, on May 29, there are 13 companies that have received permission to trade crypto assets by CoFTRA in Indonesia.

Conclusion

From some of the things that I have said above, I try to take them to conclusions to make them easier to understand.

1. The difference where the conventional currency system has a centralized nature while digital currency has a decentralized nature.

2. Everything in this decentralized system can be controlled directly by the user in this system the user has complete freedom.

3. There are several things that influence the rise and fall of the value of crypto.
A. The balance of crypto value is influenced by supply and demand.
B. The existence of social media news can also affect the fluctuations of the value of crypto.
C. Caused by the words of influential people in the crypto world.
D. The number of existence of crypto assets.
E. The fear and greed that humans have.

4. Sophisticated tools and inexperience make it impossible for everyone to do mining, capital is a very influential thing.

5. The blockchain technology system that is owned by crypto is a system that does not require a third party in the transaction process so that every transaction that occurs in crypto is more transparent.

6. The existence of Cryptocurrency in Indonesia was initially rejected but now it has received permission and is specifically regulated by the central government.

Sorry if there are words and writing that are wrong, if other friends want to comment, please comment in the comments column below.

Thank you for reading my writing, see you in the next assignment.

Best regards @karimjz

CC:
@levycore