STEEMCRYPTOACADEMY WEEK14, HOME-WORK POST FOR LEVYCORE,LEARN ABOUT CRYPTOCURRENCY.(POWERED UP 100%)
Author= @Levycore
Introduction
Conventional financial system
Conventional financial system can be defined as one which scheme is basically offered by a financial institution or banks. In order words the both isn't guaranteed by a central agency, along the process conventional loans are been given guided by the government entities.
The various loans that are been given by government to different individual's is perhaps also called conforming loans they are been issued by government entities, we also have what is called a non-conforming loans this doesn't meet the requirements of the government entities.
These are specific loans that are been given to individual's for a long period of time within a duration of 25-30 years. You can pay part payment every month, the loans can also be given within the interval of 40years. The loans can also be Amortizing thus the total balance of the principal and the intrest are then paid off at the end of the loan duration.
They can also be called Self-liquidating loans they also have the one called third feature of traditional conventional loans, this particular one are given at a specific fixed rate, the intrest rate doesn't change.
Cryptocurrency from my understanding can be defined as a digital or vitual currency that is secreted by cryptography, which prompts a double speed and makes a network Decentralized block-chain technology a give away ledger piercing by a desperate network of computers.
Cryptocurrency are not issued by any government agencies or any authority it is basically Decentralized meaning anyone can own any cryptocurrency of your choice.
Cryptocurrency are more like a system that paves way for a sound and secure payment platforms you can pay online which purely over thousands in terms of a vitual tokens are set aside and replicated by a ledger entity. Cryptocurrency are refered to different encryption algorithm and cryptographic differences that safeguards different entities, this elliptical curve encryption, public private key, and hashing functions.
I got to know about cryptocurrency in the year 2013, I was listening to my Radio set when I had an announcement about a cryptocurrency seminar coming up in #Rumuodara somewhere around portharcout city. I took a nap and went there fortunately after the lectures I took the advantages and bought some cryptos which I further sold and made some huge profits.
Whenever people hear about cryptocurrency the first thing that comes to their mind is Bitcoin it's basically Decentralized it was the first blockchain based cryptocurrency currently now it remains as the most popular, People value it alot as we speak. We have different alternate cryptocurrencies with specific functions. Some of then are clones or foks of Bitcoin.
Bitcoin came on board in the year 2009, as different individual or converging groups by pseudonym Satoshi Nakamato back then in the month of March 2021, there was over 19.5 million Bitcoin around with a total Market capitalization of around $927 billion.
Back then we had some currencies that was competing they where know as #Altcoins and some of their example's included Litecoin, Etherium, etc. Currently Bitcoin still outclass then all in tense of it's value and popularity.
what is the fundamental difference between cryptocurrency and conventional financial statement
Difference in cryptocurrency
Cryptocurrency is a digital assets or a vitual currency and it is Decentralized in nature, that's why anybody can own it.
Cryptocurreny makes use of wallets, or address, it also has a private, owner, and active keys, which only the owner can have access to.
Cryptocurrency can be exchanged and sold in order to have physical Fiat making transactions with third party looks so pretty because not too many Charles are required.
Transferring funds are minimal and it's processing fee allows different user's to avoid various steps excessive fees that is charged by commercial Banks, and financial institution's.
Difference in Conventional financial institution
A bank is a conventional financial constitution, it serves as a purpose between a middle man and the depositor who is the one supplying the funds.
A conventional financial constitution like bank main aim is to accommodate deposit and use the funds later to issue loans to it's customers.
Financial institution acts as a payment agency, it offers a key payment services they also issue credit card, cheque books, etc.
A conventional financial institution like banks makes extra money by investing the deposits you make, sometimes they trade on it too in order to make extra cash. Although depositing money in the bank is safe and secured.
Why is Decentralized system needed
Cryptocurrency Decentralized nature won't be over emphasize here, I so much like it's Decentralized nature because since it is a digital assets that is designed to work as a medium of exchange, it's Decentralized nature is very much needed because if creates room for less cheating, what I mean is that intense of hacking if you see ones adress without copying it, it can never work.
Writting the address one by one won't work. Cryptocurrency doesn't exist in physical form (like paper/money) it isn't issued by a central authority, it uses a Decentralized control each cryptocurrency works as a distributed ledger technology basically a blockchain that serves as a public financial transaction database.
Bitcoin as a cryptocurrency Decentralized was first invented in 2009, as an open source software, it was the first cryptocurrency to be Decentralized. Hopefully I must tell you that cryptocurrency Decentralized system is very much needed.
Decentralized system makes cryptocurrency safe and secure and it restricts government agencies to place any source of ban on it. In my country Nigeria recently our federal government placed a ban on cryptocurrency exchanges that means for you to exchange it has to be P2P method only. But since cryptocurrency is Decentralized brother it can't be stopped by anyone, So the Decentralized system is very much needed.
Each time you as an individual decides to open a bank account, all your individual records are been taken however it isn't compulsory to use KYC regulated cryptocurrency exchange to trade, some good number of exchanges always finds a way to operate on a clear jurisdiction that doesn't mandate KYC thereby placing then in a grey area in tense of some pretty legal obligations.
A reformed regulations are basically implemented, the various prices tend to react quickly for e.g when Japan made an announcement that it is going to legalize Bitcoin back then in the month of April 2017 I remember vividly, the price went up nearby 4% in a day.
One major thing that is key in the world of cryptocurrency is compliance and the ability to regulate it's unpredictable nature. If you are dealing with crypto assets you must be equipt to act swiftly thereby adopting to new changes in order to protect your investment from falling into liquidation or scrutiny.
Current affairs vividly has no hands in what happens in cryptocurrency, the effect on share prices. Cryptocurrency is basically seen as an alternative to physical cash, so when me as an investor lose my confidence in Fiat currency because of some economic hardship or political events around. It's price might be forced to be pushed up. We have had some rescent announcement by the presiden regarding the covid19 vaccines that it had some positive's on both cryptos and Fiat currency.
I could remember when the announcement can to fruition that the currentUS president won to become the next president of USA and that a potential vaccine of Corona virus will be made ready soon next year. Financial market rose with global shares everything rose, same can be attributed to cryptocurrency value too as Bitcoin soared to it's highest level since January 2018.
Recently PayPal is now allowing it's users to hold cryptos in their various online wallets thus you can use then to shop, and do other transactions too. There are over 27milloon people on the network and their perception is changing toward cryptos, this could also help the inverse value of cryptos include physical cash too in order for them to become more popular.
As we speak today there are millions of cryptocurrencies around the globe with different functions and specifications. Most importantly they are emerging all the time as we speak, you as an individual can make money from any cryptocurrency that you are holding, newer currencies are been launched every moment and it is contributing to the high effect on the value of cryptocurrency.
The most cryptocurrency now are segregated thereby having a finite supply and a minimal supply which can help in accelerating a higher demand thereby making prices to go higher. Some people keep saying that cryptocurrencies are set aside prior to the global financial system in which central banks can now be able to print more money.
This can lead to inflation and the money in your pus is not worth much as it's usually use to be, cryptocurrency has prolonged the the market capitalization of some commodities but with the more expanciated/wider adoption of vitual coins as viable payment methods, crypto will become a safer, more nicer, investment opportunity in near future, Crypto is the future
I really love this question, but firstly the question you should ask yourself is what is cryptocurrency mining, mining of cryptocurrency for example Bitcoin is like Mining gold you put in massive work in the end you get your reward. Along the process you get currency with your time and computer processing power.
Mining has to deal with a computer system, miners as they are been called maintains and Soares their Bitcoin Decentralized accounting system. Remember all Bitcoin transaction has its record designed in a ledger called blockchain
Bitcoin miners update the ledger by downloading a specific pieces of software that paves way for collective verification of different transactions. they solves some mathematical questions in order to secure key access to add blocks for transactions into the chain.
In return they earn bitcoins or any other currency, as well as transaction fee
Risk
Since different miners needs an accelerated amount of computer power to earn crypto, many will start compromising public networks so that it will then be very possible to access user's devices, another one is delay in loggings, there are always delays if you want to logging into your computer devices WiFi network. The malware authors use this particular one to hult access to the user's or investors computers that is used for mining.
Using public WiFi network millions of website are been hacked to access user's devices for mining. When a particular hacker loads a Mining software into devices without the investor knowing nor granting permission it is known as cryptocurrency mining encounter.
Note
Every body can't be a miner, now before you decide to go into Mining check your geographical location if Mining is allowed over where you find yourself because there are countries where mining are not allowed to take place. Glory be to God in my country Nigeria here Mining is allowed.
Transacting using any cryptocurrency of your choice is very safe and secure concomitant technical details are transacting through cryptocurrency blockchain your record will be kept very well.b
Cryptocurrency transactions creates a real world interactions and relationship between investors. The heart of cryptocurrency transactions is Trust trust in all ramification I must tell you.
Cryptocurrency transactions is very transparent there was a time I sent 120 steem to a third party initial I thought I sent 200 steem but showing how transparent cryptocurrency transactions can be everything showed very clear.
Crypto transactions in near future will put money bank transfer into disreput what I mean is that let's take for example I'm in UK, and I want to transfer cash to someone in Nigeria, what I need do is to collect the person's wallet address and paste him the value of the cash I want to send to him as Bitcoin he will exchange it and collet the cash, there by reducing the bank charges that could have been searched along the process.
So in near future with the transparency of cryptocurrency transactions banks will no longer have business as usual.
Explain how the development of cryptocurrency in your country
Cryptocurrency in Nigeria
I'm a native of Nigeria a place called #Rivers state many people now own cryptocurrencies but there is an update currently now what people in my country does is buying of cheap coin then selling it at higher rate after the coin must have had value. I as an individual gave helped in broadcasting Steem to different people I have also recruited many people to steemit platform.
If you have been to Nigeria you will understand that there is not enough room for employment of labour so since cryptocurrency is Decentralized meaning anyone can own it many people have ventured into it 40% of youths in Nigeria gas cryptocurrency.
I could remember sometime this year the month of February I guess the federal government of nigeria placed a ban on Crypto exchanges reason been that cryptocurrencies is promoting and making crime rate to increase in the country, secondly that cyber crime is on the high rise too as well. So exchanging cryptocurrency now has to be through P2P method. I was totally hurt when I heard this news. In general cryptocurrency in Nigeria is on a high side at which many individual now own then.
Thank you very much professor @levycore I really appreciate for this great lecture I really learnt alot thank you very much
Cc:@Levycore
Hi @kingcent , Thanks for submitting your homework
Feedback: You have completed every point and you have understood the basics of cryptocurrency
Rating: 7
Thank you very much sir