Steemit Crypto Academy S2Week6 || What you need to know about Cryptocurrency || Submitted to @levycore

Thank you for a well presented lecture @levycore

Introduction
Basically, cryptocurrencies are digital currencies like our conventional currencies which can be used to trade goods and services. It operates using an online ledger and built on a blockchain which makes it super secure. Currently, the world is still in the verge of total acceptance of cryptocurrency as most government have banned it use but despite this, the number of investors increases on a daily basis. Will now answer the task questions.

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

The most outstanding difference between Cryptocurrency and conventional financial system is that cryptocurrency is decentralized, what that means is that it doesn't require any third party countrol, moreover, your account details remains in the custody of the owner whereas conventional financial system is totally centralized because an organization is available to manage accounts, and etc.

Cryptocurrency is also very secured when we compare it to our conventional financial system. Apaer from this, speed of transactions for cryptocurrency is very impressive. Conventional financial system is quite slow.

Question 2
Why is a decentralized system needed?

Decentralizated system are need to rule out the need for the third party in Centralized systems. It is needed to safe funds of users since they will be in full possession of their private keys.

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Decentralized systems does not require any exchange involvement. Decentralized systems would also help to reduce transaction fees incured in Centralized systems.
Finally, Decentralized systems ensures that the system is safe and cannot be hacked.

Question 3
What affects the value of cryptocurrencies?
Cryptocurrency has been described to be very volatile with Alot of price fluctuations, this is due to the face that:

  1. It is not regulated by any central bank or even the government

  2. Demand and supply is also a factor: When a product is excess in the market, the price is subject to decrease but if the product is of high demand and short supply, prices are bound to increase, for this reason coin burning has been introduced, a process where coin are burnt and sent to a secret address in order to reduce the total supply thereby forcing and increase in price of the coin.

  3. Another factor can be attributed to the cost of mining, mining involves series of equipment which might be very expensive and can inturn increase the price of a coin or token.

  4. Finally, the number of competing currencies can either force a coin to increase or decrease in value.

Question 4
Why can't everyone be a miner?

Though mining has been simplified now, meaning we can even mine with our mobile phone, but then everyone cannot be a miner. This is because mining is quite expensive, the equipments used for mining are really expensive and as such only very few persons or organizations are able to acquire such equipments.

Another point is the fact that energy(electrical power) required for mining is quite high, this also increase the cost of mining and yet not everyone can afford such power. This high power consumption will lead to high heat emmision which is quite harmful to the society.

Question 5
Why can cryptocurrency transactions be called more transparent?

As earlier stated, cryptocurrency is built on a blockchain, which cannot be manipulated nor controlled by anybody. It It is also open sourced, which gives everyone an ability so see transactions. All transactions are stored on a blockchain ledger which can be accessible to everyone.

Question 6
Explain how the development of cryptocurrency in your country?

Nigeria is experiencing a very fast development in cryptocurrency, even though the Central Bank of Nigeria banned cryptocurrency trading in February this year, but weeks later the gave permissions for Crypto trading. Nigerians are quite innovative and they seek to explore every opportunity to make wealth. There has been a considerable increase daily in the awareness of cryptocurrency.

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Cryptocurrency is quite risky, and I believe they are ready to accommodate what ever comes with it, with over 9, 000 tokens and coins available in the market today, they are ready to explore. More awareness is still ongoing in this regards as cryptocurrency is changing lives over here and everybody is keen about trending business.

Conclusion
Despite the awareness cryptocurrency in regarda to Cryptocurrency, there are still countries who are yet to approve trading which means that cryptocurrency adoptive could get even better than what we have today. I believe we all are enjoying the crypto cruise.

Thank you for the Lectures this week, I look forward to you next lecture.

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Hi @promo-nigeria, Thanks for submitting your homework

Feedback: You have completed every point but, You are still lacking in explaining each point ,next please do more research for your post

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