Crypto Academy season 2 week 6-Homework post for[@levycore]Learn About Cryptocurrency

Fundamental difference between Cryptocurrency and the conventional financial system?

• Legality
  Governments publish fiat currencies, controlled by the central bank. Fiat money been considered legal tender is the formal way to conclud transactions. Fiat money supply and issue policies is been Checked time to time and it also affects their value.
  While cryptocurrencies are simply digital assets that stands as a medium of exchange that the governments don't control. It's decentralization feature is that no central body can regulate or affect the value.

• Tangibility
  You don't possibly feel the cryptocurrencies as they are used online as virtual coins. But Fiat currencies, can be felt and they can be in notes or coins.

• Exchange
  Cryptocurrencies are in digital Form they are created by computers and they also operate as pieces of code. This means the exchange is digitally made. Meanwhile fiat money exist in digital and physical form. The Electronic payment services permits people to transfer fiat money digitally. hereby allowing physical transaction of money.

• Supply
  The main dissimilarity between fiat money and cryptocurrency is the supply. Fiat money has limitless supply which means central body have no cap to the limit of production. With fiat money It is not easy to give the exact amount of money in flow.

Why a decentralized system is needed?

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• Decentralization is the solution to trust issues by allowing multiple participants to regulate a network. Thereby making the users not to put their trust on a central body, and also prevention of bad behavior is allowed.

• Decentralized networks are open-source projects, this simply means it allows the creation of apps, products, and services on them. This boost chances for network increase. Under closed systems, developers are restricted to what a central organization order what can be built or developed.

What affects the value of cryptocurrencies?

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• Adoption by the masses
  value of a currency can go high if adopted by the masses. This is so because of the finite number of cryptocurrencies units accessable, the demand goes up, with its price also. But if they start getting welcomed as a means of exchange in transactions, the demand will go up, higher this time.

• Regulations
  Tho, as bitcoins and the other cryptocurrencies are ready to become more established, the possibility of them coming under some form of government control are remarkably high. The application of regulations would trail to digital money turning to be more centralized, hereby leading to a sizeable impact on cryptocurrency price.

• Increasing node count
  One more good measure of cryptocurrency value is node count. Node count can be refered to as the measurement of the number of the active wallets on the blockchain network, it can also be located on the internet or the website of the currency. the much nodes, the powerful the community becomes.

To examine if a currency is nicely priced, it's node count and the total market cap of the cryptocurrency can be searched and compared with the same range of other cryptocurrencies. It's also a means to know if a specific cryptocurrency is overbought.

Why can't everyone be a miner?

You can if you can make profit. But then the difficulty goes up. Again not everybody can make gain at it, most of them switch off their machines. But some still can, and invest more, and the difficulty moves up.

Everyone can't be mining the reason is that not everyone will be making a profit. Now consider the Electricity costs, equipment costs, datacenter management costs. all consumes revenues. Except you are Normally good at one or more of those, you will not make money. That is Because all your competitors are normally good at those, and takes the difficulty up till they are scarcely making a profit, in this way if you are not doing well, you won't be.

Why can cryptocurrency transactions be called more transparent?

Been transparent is the way all the processes relating to cryptocurrencies are Been dealt with, A ledger is been made public,in the sense that anyone in the blockchain can view, moreover every single person can view their assets.
Transactions within the blockchain system is very clear to public, it is an open system to all, unlike the banks, where location of the commission charged is unknown. The transactions can vary from one person to another and do not require so much time to take effect.
When done the real operations can be seen publicly.

Development of cryptocurrency in Nigeria

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The Nigeria government has tried to put a ban on crypto currency, tho its legal status remains clear.
The measures the Nigerian government took was by giving strong warnings about the dangers of funding in the crypto currency markets. These warnings been issued out by the Central Bank (CBN) and the Securities and Exchange Commission (SEC). The aim of these warnings was to teach the citizens the difference between the currencies; issued and assured by the state, and crypto currencies; which are not.
The government went futher to add the risk resulting from crypto currencies and the truth that some of the organizations that ease such transactions are unregulated. It was also stressed that citizens who fund in crypto currencies do that at their own risk, and that no legal option is open to them in the case of loss.
Nevertheless, despite all these crypto currency exchanges is still operating normal.

Some of the African countries, Nigeria is yet to launch a legal framework or legislation for crypto currencies or crypto exchanges; nevertheless there is a considerable interest to start one soon. With these effects, Nigerian lawmakers have also solicited the regulatory authorities to hasten up efforts in starting a legal frame work for crypto currencies in the country.

Conclusion
Decentralization appears to be on people's tongue, mind following distributed ledger and blockchain. I strongly think that decentralization will play a vital role in our lives in years to come, as it integrates more and more into our everyday activities and with this, it will take the authority away from a single body (centralization) and spread it to the masses.