Steemit Crypto Academy Season 2 Week 6: Learn About Cryptocurrency || Homework Post for professor @levycore || by @preye2

Hello All
Wow another wonderful and Interesting lecture from our brilliant and Intelligent professor @levycore, you are indeed a genius when it comes to breaking difficult topics down to our understanding, and I appreciate you for that.

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This week's lecture which is on the topic "Learn About Cryptocurrency", is indeed a broad topic that covers alot of areas, because is all about getting to know Cryptocurrency Digital Currency.

Before I proceed to answering the homework task given to me, let me equally tell what cryptocurrency is, just as I have learnt from my able professor;

Crypto: This refers to the different cryptographic techniques and encryption algorithms that helps in securing your assets and a way of making them unique.

Currency: This refers to the use of money or anything equivalent to facilitate transactions.

Cryptocurrency: This refers to a digital currency that is usually operated online and It is in a Decentralized form which makes it free from the control of the federal governments and Central authorities. It can equally be referred to as a virtual system that allows token and coins to be transacted online.

Having understood and gone through your lecture Sir, permit me to proceed to the homework task given to me by you.

Question 1

What is the fundamental difference between Cryptocurrency and the conventional financial system?

Answer

It is true that both the conventional financial system and Cryptocurrencies are used as means of payment. Nevertheless, there are several differences between the two.

The Major Difference Between the conventional financial system and Cryptocurrencies is that;

The Conventional Financial System: Consist of Currencies supported or belonging to a particular Central Government or country, and it's controlled by the bank🏦 or central body. Examples include; Dollar belonging to the Central Government of the United State of America, Naira belonging to the Central Government of Nigeria, and so on.

While

Cryptocurrencies: On the other hand, Is a Decentralized and Global Digital Currency which means it does not belong to a Central Government, and can not be controlled by the Banks.

Source

Other Differences of Conventional Financial System and Cryptocurrencies Includes:
The Conventional Financial System:	Cryptocurrencies
This is a Centralized financial system that allows transactions of fiat and our traditional currencies such as Pounds, Dollars, Naira, Rupiah, Dinar, Euros, and many more. And it is controlled by the Banks and the Central Government.	This is a Decentralized and Global Digital currency that allows transactions of coins, such as Bitcoin, Ehtereum, Steem, Dash, Litecoin, Tron, Dogecoin, BNB, and many more. And is not controlled by the Banks and the Central Government.
This is somewhat like a physical medium of exchange	This is somewhat like a digital medium of exchange
The value are usually determined by the market and regulation	While in crypto, the value are usually determined by Supply and Demand
In this system, money is generated and issued by the government	While in Cryptocurrencies, the coins are produced by computers.

Question 2

Why is a decentralized system needed?

Answer

There's no doubt that Decentralized system is the Future of world, because everything is going digital and being in control of your asset and transactions at your own will without the intervention of a third party remains the best.

The main reason why Decentralized system is needed is because it gives it's users that freedom they are looking for, and trust me when I tell you that majority will go for freedom rather than restrictions, everyone will love to be in control of his or her asset, and controls it at will.

Question 3

What affects the value of cryptocurrencies?

Answer

Crypto is a digital currency that goes up and down due to one thing or the other. Nevertheless, there are some things that affects the value of cryptocurrencies and they include:

• Change of Rules:
  I always tell people that crypto is unpredictable and a given rule concerning cryptocurrencies can affect it's value. A good example is the case of April 2017, where Japan announced that Bitcoin has been legalized in the county, There was a massive change in the value of BTC in less than 24 hours.

• Lost of Confidence from Investors: Crypto as we all know doesn't have a Centralized system, in other words it is made up of different investments from various investors. So if a big investor lost interest in crypto due to maybe a negative press comment or something else, It will affect the value of cryptocurrencies.

• The Market Cap is Another Factor:
  You would agree with me that with the observations of cryptocurrencies so far, If the market cap of a coin trends to go high, there is a good chance for cryptocurrencies investors to invest in the coin whereby making it's value high but When the market Cap of a coin or cryptocurrencies trends down it will definitely affect the value of the coin or cryptocurrencies.

Question 4

Why can't everyone be a miner?

Answer

It is true that everyone can go into mining, but it is also true that not everyone can do what it takes to mine.
Mining requires some quality and activities from you and not everyone has the time, knowledge, resources, and energy to go into mining. Some things needed to mine includes;

• Competition: To be able to compete with other miners, you would have to put in your best and dedication to it.
• Mining Knowledge:
  You can't go into what you don't know, and having the knowledge to mine is one requirement, which not everyone has. And so on.

Question 5

Why can cryptocurrency transactions be called more transparent?

Answer

The major reason why cryptocurrency transactions can be called more transparent is because it is not only a Decentralized system but it is equally an open source system, whereby users will see everything concerning the cryptocurrency or coin without any form of restrictions or stress.

Question 6

Explain how the development of cryptocurrency in your country?

Answer

Welcome to Nigeria where transactions concerning cryptocurrencies with the Central Bank have been ban by the Central Government of Nigeria because they see it as something illegal. Funny right?

I must say that the development of cryptocurrencies in my country (Nigeria) is slow, because investors of cryptocurrencies in my country are not much compared to the population of the country.

Nigerian have not really invested in cryptocurrencies since it started in 2008, especially the older men and women. Nevertheless, Cryptocurrencies and it's investment have started growing on the minds of the young men and women of Nigeria.

Conclusion

The growth of cryptocurrencies in Nigeria is sure because Nigerians have gradually started investing on cryptocurrencies, even with the ban of transactions to the banks of Nigeria, We still do our transactions through the peer to peer method which was the method taken when cryptocurrencies initial started.

I know that I'm the nearest future, cryptocurrencies will grow so big in Nigeria, as Nigerians have began to vsee the need to invest in cryptocurrencies.

SPECIAL MENTIONS

@steemitblog
@levycore

Thank you all....