Steemit Crypto Academy Season 2: Learn About Cryptocurrency by @kemal13
Hello everyone,
This is my homework post for Professor @levycore
What is the fundamental difference between Cryptocurrency and the conventional financial system?
Cryptocurrency or digital currency uses transactions over the network (online). Cryptocurrency, a vocabulary derived from the word cryptography or cryptography (coding language), refers to an agreement from users and a storage process that is secured by strong passwords, while currency is a currency as a medium of exchange that prevails in society.
Cryptocurrency is a centralized currency system in the form of a network that is able to connect its users without intermediaries or third parties such as banks or governments. Cryptocurrency originated from looking for answers to problems faced by payment systems today that rely on third parties as payment product companies that can be trusted to manage digital transactions such as Visa Paypal and others.
Bank Indonesia divides 2 types of payment system instruments, namely cash and non-cash, consisting of cash payment instruments in the form of banknotes or coins and non-cash instruments or Digital Money / Electronic Money which is a non-cash payment instrument or instrument. The development of e-money in Indonesia has created a trendless cash society, namely a community behavior using non-cash transactions with take advantage of the conveniences offered by electronic transaction tools. These include speed and efficiency in conducting transactions (Alert, 2012).
The use of e-money is more convenient than cash for transactions of small value, because the customer does not need to have an exact amount of money for the transaction, and errors in counting can be reduced, Gormez & Capie (2003) explain that e-money will affect the financial services industry in the future and can afford it reducing barriers to accessing the financial services industry.
The use of Cryptocurrency as a means of payment in Indonesia is still small, namely 0.02% of worldwide share. In Indonesia there are more than 50 merchants cryptocurrency for both online and offline transactions, especially bitcoin can be seen on the site http://directory.bitcoin.co.id/. Although dominated by business restaurants and inns, but this is enough to prove its existence in the country this (Syamsiah 2017).
It can be concluded that there is great potential in the future due to rapid growth in anticipation of technological developments. This matter making cryptocurrency need to be regulated and get legal certainty and attention from competent authorities such as banking and taxation authorities.
Why is a decentralized system needed?
Decentralization can reduce the accumulation of all jobs that occur at the center or at the center. To deal with that, the regional parts do not need to wait for instructions from the central so that a very good relationship will occur. With centralization, autonomy in regional government will emerge. With the existence of decentralization, it will have a positive impact on regional development in the future so that it will trigger excellent and significant national development.
Source
What affects the value of cryptocurrencies?
For crypto asset prices, it really depends on the balance of supply and demand so that the more popular and the more demand, the price will also increase, and vice versa, if the demand is low, the price will also fall.
Some of the factors that influence it include:
- Supply and Demand
- Cryptocurrency regulation
- News about the Cryptocurrency Infrastructure
- Attack from Hackers
- List of coins on Top Exchanges
- News from the Media
Why can't everyone be a miner?
Being a miner is not easy. Where, besides they need skills, they also need a lot of money to be able to create a mining empire where they have it.
To become a miner requires very important tools, these tools are not cheap, plus the mining method is one of the methods that is not environmentally friendly, because it consumes a lot of electricity. For this reason, extra money is needed to support the work to keep going.
Plus, the price circulating in the crypto market with the income of miners does not necessarily match what they have spent as capital to become a miner.
Why can cryptocurrency transactions be called more transparent?
For transactions using cryptocurrency, you can see the entire transaction, be it supply, the number of transactions and even the address of the transactions that occur every day. However, you cannot see who the transaction was given to and from whom. It is enough to look at the entire circulation of money that has entered cryptocurrency that you can only see in detail except from who and for whom.
Cryptocurrency is built on the blockchain system which is a digital currency. For this technology, there is no need for a third party, just from you and the intended person. So that every transaction becomes more transparent and decentralized.
Explain how the development of cryptocurrency in your country?
In my country since 2017, only this year has cryptocurrency been accepted by the public and is directly monitored by its supervisory agency, BAPPEBTI, and there are several coins that have been formalized and directly monitored by them. You can read this info below:
With this, I myself feel very happy because there has been a bright spot and the acceptance of cryptocurrency as a transaction on the futures exchange. This is what users have been waiting for for a long time.
Plus, recently digital currencies have begun to be popular and are transacted in several digital markets to become a separate income for its users. There are several digital currency markets in Indonesia that can be accessed by users. That is :
| Indodax |  | https://indodax.com/ |
|---|---|---|
| Tokocrypto |  | https://www.tokocrypto.com/ |
| Binance |  | https://www.binance.com/en |
and there are several more markets that can be used to make these digital currency transactions.
Conclusion
Cryptocurrency is present into the international world as a new platform for any economic activity and has an impact on all international relations and has become a global phenomenon. Its activities also contribute to weakening the traditional banking system which has become one of the focuses of the country's economy with all actions that have crossed national boundaries. It is also an inseparable part of the process of globalization and the process of changing global political economy.
It has been developing very fast and will continue to do so. Cryptocurrency can be used as a medium to manipulate the transaction system as well as be at risk of criminal activity and provide immunity due to its anonymity.
The development of cryptocurrency from year to year is considered very significant which is also supported by globalization and technological advances.
Regards,
Shared on Twitter : https://twitter.com/kemal13steem/status/1394578347217223680
Hi @xkemal13, Thanks for submitting your homework
Feedback: You have completed every point and you have understood the basics of cryptocurrency
Rating: 6
thank you prof :)