Crypto Academy Week 14 - Homework Post for @levycore

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Hello fellow steemians,

I’m excited to part take in this week’s class presented by crypto professor @levycore which he discussed everything you need to know about cryptocurrencies. I am here to present my homework.

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WHAT IS THE FUNDAMENTAL DIFFERENCE BETWEEN CRYPTOCURRENCY AND THE CONVENTIONAL FINANCIAL SYSTEM.

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CONVENTIONAL FINANCIAL SYSTEM:

• Is the orthodox banking system which is centralized that’s controls transactions with money in the form of coin, paper, or plastic (fiat currency).

• This banking system requires intermediaries and controlled by the government, banking system place some restrictions on the services they provide (you have a limit of money you can withdraw in a day).

• It is also highly vulnerable and is exposed to hackers.

• The value of this system is determined by the markets.

CRYPTO-CURRENCY:

• Is a digital or virtual currency that’s build on a block chain network to be used for financial transactions which is decentralized.

• With cryptocurrency, payments are between the sender and the receiver only, there is no need for any kind of intermediary. Because is a virtual system you can receive and send funds anywhere at any time on any day.

• Is safe to use with fairly high security and less exposed to hacking since it does not expose user details to intermediaries.

WHY IS A DECENTRALIZED SYSTEM NEEDED?

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We have been developing and evolving for so many years now, moving from a financial centralized system to a virtual decentralized system. Here are some reasons why we need a decentralized system:

• A decentralized system is needed because there is no intermediary in our transactions which makes them more secure, private and trustworthy.

• The government has no influence over your transactions.

• The value of a decentralized system is determined by the supply and demand.

• There are no restrictions on how or when you should make your transactions on a decentralized system.

WHAT AFFECTS THE VALUE OF CRYPTOCURRENCIES?

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The value of crypto currency is mainly affected by supply and demands making it very volatile. The more the number of individuals investing in crypto currencies the higher the value which is why the price frequently fluctuates. A typical scenario was when Elon Musk tweeted saying tesla was now accepting bitcoin, a lot of crypto users bought bitcoin at that time which increased the value. No individual has power over it, is a decentralized system which will attract more investor every day because they are confident in it.

WHY CAN’T EVERYONE BE A MINER?

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Mining cryptocurrencies is very costly since it requires a lot resources and power. It requires learning to gain a lot experience to be able to operate the technological aspect and the mathematical aspect of it and you would need a huge sum of money to start mining and not every one can get that money.

Some companies have access to the mining machines and all the what is needed to mine which they mine and allow other users to cloud mine with their machines for a fee.

WHY CAN CRYPTOCURRENCY TRANSACTIONS BE CALLED MORE TRANSPARENT?

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There is no third part or intermediary involved in transactions that are done on the decentralized system so it’s users put their total trust in it, There are no hidden chances since It’s built on an organized block chain where every transaction can be found.

DEVELOPMENT OF CRYPTOCURRRENCY IN MY COUNTRY(GHANA)

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The number of traders and investor joining the cryptocurrency world is increasing greatly in Ghana but there have been some issues and complaints from some of the traders too. Ghanaians would need to adapt to using cryptocurrencies in making their daily transactions which will also make things much easier and safer for us.

CONCLUSION

Cryptocurrency is the future and it is changing the world’s financial system from a centralized system to a trustworthy decentralized system which provides security for it’s users, every one should quickly adapt to, it has many advantages over the conventional financial system with reliable and transparent transaction on the block chain.

Thank you for reading.

@levycore
@steemitblog
@steemcurator01
@steemcurator02