Hello every one welcome to my first homework in week 14 in this great community known as crypto academy and this home work was given by our professor @levycore so let's get it started already.

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1). Fundamental Difference Between Cryptocurrency and Conventional Financial System.

The main difference between Cryptocurrency and Conventional Financial System is very crucial and needs to be brought to light at any given time, so we all know that Cryptocurrencies are money that can't be physically carried in our hands because they are digital and they perform their function as a value holding asset that can be spent on goods and services but they are not accepted globally because some countries ban them while the conventional financial system is the opposite in the sense that it is both digital and physical basically it is fiat currency like USD, NGN and many more the only similarity it has with cryptocurrency is that it can be spent on goods and services.

Cryptocurrencies can hold more value than fiat currency that is why it is seen as the currency of the future because it makes more sense and another difference is that crypto currency is more ecosystem friendly than the conventional financial sysetem.

In Cryptocurrency transactional activities can be carried out without the involvement of a third party while conventional financial system must include a middle man in their transaction.

In cryptocurrency it is mostly decentralozed platforms that runs while the conventional financial system mostly run a centralized type of system which is time wasteful.

1. Why is a decentralized system needed?

There are many reasons why decentralized system is needed which i am going to be listing below.

I). No central unit of control: Meaning there is no central control of any sort to carry out transactions or anything In decentralized platform.

II). Decentralized system is needed to reduce hack because every body have independent access to their account because they hold the keys to their account and this reduce hacking activities.

III). Decentralized platforms are scalable: It is scalable because it can handle large amount of transaction very well and also it has capacity to interchange data with other blockchain systems high chance of guaranteeing such information are not destroyed or manipulated before they are executed during the method.

Iv). Decentralized platforms are Transparent: They are transparent in the sense that there is no hidden agenda in them because they are not controlled by a central figure.

3). What affects the value of cryptocurrencies?

They are a bunch of factors that affect the price of cryptocurrency and they are listed below and explained.

I). Demand and supply of the token: If there is demand in any crypto the price of that crypto increases also in supply, if there is low supply of tokens there is going to be increase in price for that crypto.

II). The number of Nodes: This is often the number of wallets effectively holding the crypto. It can be gotten from the site of the crypto or etherscan and bscscan for tokens on Ethereum and Binance smart chain systems respectively. The more holders, the higher the cost of the crypto.

III). Community: The community of the asset can really affect the price of a particular asset either pushing the price up or down example is the doge community which played a vital role in pushing the price of the asset up.

IV). The cost in Mining: the high cost in mining affects the price of cryptocurrency because it is not every body that can afford it and example of one of the coin that it's mining cost a lot is Bitcoin.

4). Why can't everyone be a miner?:

Mining involves a lot of electricity and equipment. Thus it is capital incentive. To set up the equipment for mining, one needs a lot of money. Not everyone have such huge capital.

The equipment used in mining is very advanced and it is not every body that can operate and advanced technology to avoid damaging it which will cost money again to fix or replace because of that a lot of people don't go into mining because they are afraid they will loose their capital.

5). Why Cryptocurrency transactions could be said to be more transparent

There are a lot of reasons that suggests that and their transactions are transparent and they are:

I). Data are stored in nodes and this nodes are made available to any connected neywork to the blockchain network.

II). The information that has been stored can not be destroyed or manipulated.

III). Information of any transaction are made public for any body to see

6). Explain how cryptocurrency has developed in your country?

Nigeria have a quick developing market for cryptocuerrency. The number of dealers are increasing. For exchanges like Binance, Houbi, Hotbit, Poloniex, Okex, among others in Nigeria, most activities there are done by Nigerian traders.

On Binance for instance, the number of buyers and sellers with Naira (Nigerian cash) is expanding by the day with over a thousand online nowadays.

In wallers also many nigerians are storing crypto for long term hold so that they don't ever loose their token so it makes sense to say that cryptocurrency is developing well in Nigeria.

Conclusion
Cryptocurrency has come to stay because it fixes a lot of issues that is seen in the conventional financial system any way thanks for reading @levycore

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@levycore
@steemitblog
@steemcurator01
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