While we know many people still do not know what is decentralization and centralization even if they live within the ecosystem have no idea what it is therefore we will clarify the main ideas regarding decentralized digital cryptocurrencies and centralized financial systems also talk a little about how cryptocurrencies move the world and that affects its value both upward and downward many welcome to a research paper on digital cryptocurrencies and conventional financial systems.

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

The fundamental differences of cryptocurrencies with respect to conventional financial systems are a very large gap we refer to the decentralized to a system composed of a number of users where everyone has rights to make decisions together this is called blockchain network systems, when we define these terms we have to be clear about a number of features necessary for this to work well so that it allows us all to maintain a constant interaction through a interconnected Nodes that validate complex mathematical data very difficult to solve to maintain security and proper order. These in turn store the data in blocks that are solved separately and after solving the blocks each Node gets a benefit.

In the centralized world is the opposite or more basic, the data is stored in a single device which is working in a single system, these are very prone to cyber attacks, they are also governed under an authoritarian regime that takes the decisions to be implemented in the current centralized systems, no user has the right to words and all private keys are held by the centralized financial centers, you also have to give personal documents to make use of them so you are exposed you and your capital.

The costs of transfers are usually more expensive than the decentralized as we know are very expensive and take a long time to become effective when we are talking about international transfers. also to obtain an account you need passports identities work letter an extremely extensive paperwork where practically summarize your life to be embodied in a private entity.

In terms of decentralization we can get full control of our assets 24 hours a day, 7 days a week no matter what time you are operating you can do it just need a device connected to the internet.

The conventional FIAT currency is a currency of a specific country that has a serial is tangible so it can be exchanged for other currencies of the same value without losing its value the bill loses track while in the cryptocurrency is different cryptocurrencies are designed for a need for example the USDT is echo to allow combat high market volatility then we have Ethereum is a stable currency create smart contracts and new tokens or coins plus many extra features. BTC is a great long-term investment system because it is always in constant growth and is used to make payments from one place to another and TRX is a currency of great commercial value, currently one of the cheapest and also uses a system of smart contracts based on its blockchain.

2 Why is a decentralized system needed?

It improves the power of speed of transactions and payments worldwide allowing to send money anywhere in the world 24/7 without any kind of documents or higher extra payments to improve the problem of centralized financial constraints and high costs and take away the Monopoly game once and for all currently many financial institutions are creating agreements with decentralized cryptocurrencies such as USDT which bases its support on a large capital of dollars in well guarded vaults. and as TRX to lighten the ecosystem for its high speeds of only 15 seconds per block.

A decentralized system is also necessary in today's world because we can all keep our capital in a reliable secure wallet and we can use it in the market when we need it, leaving out the Third Parties that want to take over and manage our capital for their benefit.

Binance's P2P system is very important because it allows us to withdraw or sell or exchange electronic currencies for Fiat whenever and wherever we are in a way that facilitates the transfer of the economy to any country where we are since this system works as a bridge from Fiat to digital.

3 What affects the value of cryptocurrencies?

Fear, CODICIA, catastrophes and the laws of bureaucratic countries that want total control of the national economy, the value of cryptocurrency truly affect investors buying and selling a cryptoasset, for example if they buy a coin it goes up in price but if they sell it it will go down, everything will depend on what the coin or token is for, if it is for a special purpose or for capital accumulation, currently there is a fear instilled in the world population of the BTC, first it was Tesla that does not want to accept more BTC in their cars, then China prohibiting financial systems to negotiate with them, this has generated a fear instilled to sell the BTC when the price goes down, which gives a unique opportunity to those who want to start and be part of the BTC ecosystem, volatility is a common factor in this crypto.

On the other hand pandemics and natural disasters also influence the economy of cyptocurrencies in social networks also an influencer can launch a twitter and say "I like BTC" and in seconds the BTC starts to rise this can lend itself to many negative or positive things depends on who the masses follow but we have to see the technical analysis the purpose of the currency and the history to really determine what is happening and what happens this allows us to reduce risks that make us decrease the capital we have invested.

4 Why can't everyone be a miner?

In my opinion personan not everyone can be a miner is the same as we all want to be LAWYERS then where is the part of agriculture, the part of the industry ... civil engineers and much more happens the same in the digital world if we all become miners then the difficulty would create very quickly resources would be exhausted every time we would have to buy more sophisticated equipment to end the competition the environmental impact would be extremely large.

In addition not all of us have the large capital that is needed to create a large infrastructure that has air-conditioned spaces we also have to have trained personnel for maintenance and software updates that are needed we have to have a much more advanced knowledge to maintain these large facilities.

Although I do not take away that we can not have a mining ring is something totally fabulous very good but at least at present to generate about $ 20 daily investment would be needed about $ 4000 then there come the risks if the difficulty changes or the price drops as it is doing at this time to recover the $ 4000 invested would have to wait much longer than previously calculated imagine this but at larger scales of thousands of connected computers all forming a mining farm.

5Explain how the cryptocurrency was developed in your country.

In my country Venezuela in 2008 was created a currency called PETRO that led many to think that it could be a token of very good value is created under the Ethererum network with smart contracts this currency came out with the purpose of creating a didactic and interactive ecositema with society and government, what happened later was that the government uses the currency to obtain other currencies such as BTC ETH ETC but can not be refunded once you buy it you can not change it on the Exchange something that I did not like and do not buy it for that.

I also want to say that in article 9 of the organic law of hydrocarbons it is established that the purchase and sale of the crypto-asset PETROS are totally legal and can be transferred from one wallet to another at any time. something very important in the Bolivarian constitution says in article 302 that the cryptocurrency can be sold and it is established that each barrel of oil is equivalent to 1 petro. even if it is not out of the ground osea in short the large reserves are property of the state and these can be sold to third parties even if they are not currently being exploited.

Conclusion:

Currently we saw the true facets of centralization and decentralization you decide which suits you more and what are your preferences and why we talked a little about the problems that affect the digital muendas and also the currencies of my country how it works and what it is really for that currency in my country for people or population has no current value as they can not be used by them in any establishment accept them well thank you very much for reading and you got this far I talk to them @leydy69.

Cc: @levycore, @steemitblog, @steemcurator01, @steemcurator02

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