Steemit Crypto Academy S2Week6||Let's Talk about Cryptocurrency||submitted to @levycore

Thank you for this lecture @levycore.

Introduction
Since the discovery of the first coin, Bitcoin, cryptocurrency has continued to increase in popularity and has been described as the new generation form of money. Cryptocurrency can be used and is still currently been accepted as a payment system in most business and companies. In this study we would be considering the task questions as directed by the Professor.

Task 1

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

There are very clear and profound differences between our conventional banking system and cryptocurrency.

1. Cryptocurrency are digital but can be converted into physical cash, conventional financial system is a physical kind of system, it has been two or more persons.

2. Cryptocurrency transactions are fast, they can be done within splits of second, whereas the conventional financial system is quite slow as it involves Alot of process.

3. In cryptocurrency, we have two systems, which are centralized and decentralized, the conventional financial system is completely centralized.

4. Cryptocurrency Transaction cost is quite considerable and lower than the conventional financial system

5. Cryptocurrency transactions are more secure and safer (it is built on a blockchain) than the conventional financial system.

6. Cryptocurrency transactions can be done by just anybody but our conventional banking cannot be done by anybody

Task 2

Why is a decentralized system needed?

Decentralized system are those that do not require a third party to control or manage it. It involves a transaction between the buyer and the cryptocurrency owner. Decentralized system are safer than the centralized as you are in full possession of your private keys. In Centralized systems, keys, passwords, etc are held by the third party. Therefore, decentralized system are needed to better secure cryptocurrency transactions and reduce cost experienced with the centralized systems.

Task 3

What affects the value of cryptocurrencies?

Cryptocurrency has being described to be very volatile, this is usually due to supply. From basic economics we can say when supply is more than demand, price of commodities is bound to reduce but when the available supply is less than demand, price are forced to increase.

image source

Another very important reasons for the fluctuations of prices of cryptocurrency is the fact that the prices are not been controlled by government or a central bank and so sometimes inflation sets in.

What people read online can also affect the price, an example is the resent tweet from Elon musks forcing bitcoins holder to sell off their coins and causing a drop in price.

Task 4

Why can't everyone be a miner?

During mining some processes occur, some of these are transaction verification and new token creator,meaning that during every mining new blocks are created, transactions are verified and more tokens are introduced.

Mining is quite interesting but everybody cannot become a miner because mining requires large equipments, so the cost of equipment is high.

Another reason is the the energy needed to mine is very high and most people cannot afford it.

Task 5

Why can cryptocurrency transactions be called more transparent?

Cryptocurrency has being described as open - source, which means everybody can view transaction from any part of the world.

Cryptocurrency operates on a blockchain which is decentralized and not manged by another third party.

Task 6

Explain how the development of cryptocurrency in your country?

In my country Nigeria, cryptocurrency is not yet legalized though we still trade crypto. Infact to worsen situations, on the 5th of February 2022, the central bank of Nigeria put a ban of trading cryptocurrency within the country, which was later withdrawn 2 weeks later.

image source

During the period of the ban, the P2P trading system was of almost importance and cryptocurrency trading continued even more than it was even before the ban.

image source

I can say that Nigerians are supporting the development in cryptocurrency with full arms, day by day more people who are aware of cryptocurrency are eager to trade. The growth and acceptance of cryptocurrency by Nigerians is quite impressive.

Conclusion
Cryptocurrency is gradually being accepted by many individuals, it's decentralized nature makes it more better than the conventional financial system.

Thank you