Steemit Crypto Academy S2W1 - How Cryptocurrency has shaped the Financial Realm. What is Its Future? By @Solexybaba

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Hello to everyone in this great community known as the SteemitCryptoAcademy I welcome you all to a beautiful week alongside a great contest before us all. it has been a wonderful break so far. today I will be participating in the ongoing contest that has been organized by the steemit engagement team which just kicked off today. so I will be dropping my entry regarding the contest before us all in this community that has been titled **how cryptocurrency has shaped the financial realm. what is its future? I beckon on you to sit calming and relax while I drop my entry.

WHAT I CRYPTOCURRENCY?

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Cryptocurrency, as we all know, is a digital token where we experience the transactions of this currency are validated and its records are preserved and maintained by a particular system known as the decentralized system with the use of cryptography to maintain this system.

The cryptocurrency was firstly introduced in 2008 by an unknown person or persons called Satoshi Nakamoto. the currency was introduced through what is known as the white paper. and the first currency that was introduced was the Bitcoin. ever since it was accepted and gained value in 2009, and after investors saw the light at the end of the tunnel quickly dashed into it and made money. on seeing this light, other investors then decided to create their token and that was how the Ethereum currency followed this same path that was taken by the Bitcoin and since then we get to see many tokens diving into the crypto world to gain value at price and get popular just like the Bitcoin token.

Although the cryptocurrency is yet to be accepted by many countries as we have noticed a decline from the Chinese Government tagging the cryptocurrency to be a sort of scam and the currency is considered illegal in that country which gives a bad name to the cryptocurrency and made the price dropped down greatly.

My country Nigeria is not an exception, cryptocurrency is also considered a fraudulent activity in my country and hence it is not legally acceptable when one wants to use it as a means of exchange for something in the market. so literally anyone caught with a cryptocurrency wallet on the mobile phone will be penalized.

Also, the Banks in Nigeria do not accept transactions regarding cryptocurrency. they often decline any transactions that have a link with cryptocurrency because it was banned. the reason because they fear greatly that the decentralized system of cryptocurrency will take over and then leave them with no choice but to bend their rules and this will affect their transaction charges so greatly as users will no longer save their money in the bank but rather invest them in cryptocurrency because it is far more profitable than the interest the bank gives regarding saving your money with them.

But then the cryptocurrency has greatly shown profitable attributes to its users and it is a good decision if been legalized by all countries. cryptocurrencies have profited many investors and it is still profiting investors so, in a nutshell, the cryptocurrency has great potential and also profits users so well.

A COMPARISON BETWEEN CRYPTOCURRENCY AND CONVENTIONAL CURRENCIES

There are certain comparisons between cryptocurrency and conventional currency and I will be highlighting those features briefly.

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PRICE VALUE

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The conventional currency is mostly regarded as a general currency that is accepted and can be exchanged for goods and services and it is generally known as the legal tender as though its price value is associated with a country issued currency, while the digital currency is a token that gets its token value from the blockchain it was invented from.

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OPERATIONAL SYSTEM

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The conventional currency as we all know is built on a centralized system as though the currency is been issued by the government and as such, they created a system where this currency can be kept which we all know as the bank. with the currency being monitored by the bank users can't gain access to all transactions they desire to execute as though the presence of a third party is inevitable, while the cryptocurrency is built on a decentralized system, where everyone is entitled and responsible for all the transactions they perform regarding the cryptocurrency and as such users only have access to their account and can execute transactions without the presence of a third party.

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STORAGE

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Conventional currency can be seen as digital currency whenever we make an online transaction by transferring money to another but when this money is removed from the bank, the money will then pass through a liquidation process after that it will then be rendered to us as physical cash or tokens as the case may be. while the digital currency is a store that is of value as though it does not possess a physical form and is highly guarded by encryption.

So the above listed are a few comparisons between the conventional currency alongside the digital currency.

EXPLAIN THE DISTINCTIVE INNOVATIONS OF CRYPTOCURRENCY AND ITS DOWNSIDES.

The distinctive innovations of cryptocurrency and their downsides will be explained is explained as seen below.

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DISTINCTIVE INNOVATIONS

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Certain distinctive innovations have succeeded in cryptocurrency and with these innovations, the currency has been doing so well and has interested many users to key into it. some of these innovations are as follows.

• CRYPTOGRAPHY - The cryptography innovation is a great innovation that has been protecting the digital currency. its function is to safeguard the digital currency from scammers and as such, it is not possible to be double-spent.

• FAST AND SECURE PAYMENT - The cryptocurrency has also been successful with its fast and secure payment transactions. when the currency is been transferred to another user, it takes no time at all. in a short while you get to see the asset in the user's wallet it was sent to, also it is more secured, here the payment can not be forged or diverted in as much as the wallet is accurate, and the currency will get to the wallet it was sent to in a short timeframe.

• DECENTRALIZATION - Another great innovation of cryptocurrency is the decentralized system. it has been successful as though users can make transactions without the presence of third-party monitoring the transaction, unlike the bank, the work on a centralized system where all operations will be carried out with the presence of a third party. so the decentralized system innovation has been a distinctive one that has made the cryptocurrency more attractive to users.

• FINANCIAL MARKET EXCHANGE - This is another wonderful innovation regarding cryptocurrency, while seated with your device one can as well launch the market on a device and then visit the cryptocurrency marketplace. in this marketplace, one can easily sell cryptocurrency, buy cryptocurrency, or exchange a cryptocurrency for another in an instant.

• TRADING OF CRYPTOCURRENCY - This is the part I value so much, what a great innovation regarding cryptocurrency. this innovation allows users to trade certain crypto tokens in the market using an app. and with this a user can decide to trade his token and within a short while comes out from the market victoriously, this means, the trading tends to profit users more and this is better than just saving your currency in the bank with no added profits.

Now we have seen a few distinctive innovations regarding the cryptocurrency, next we will be looking at the downsides of the said cryptocurrency

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DOWNSIDES OF CRYPTOCURRENCY

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In as much as cryptocurrency is so vital and has wonderful distinctive features, it also has some downsides bottlenecking the currency and some of these barricades are as follows.

• PRICE VOLATILITY - I started with this one because it is the biggest downside of cryptocurrency. price volatility has created tensions in the mind of users and as such investors are scared to pump money into the currency. the price being unstable is a great disadvantage and as such make the currency unsafe for some users. we can take a look at the recent happening regarding the Terra(Luna) token. the fall in the price of that asset was so drastic that it affects most users that had invested in it. and ever since the investors are yet to come back from that trauma. it is a piece sad news to qualify the cryptocurrency and as such becomes a disadvantage to it.

• SCALABILITY - This is also a disadvantage regarding the cryptocurrency, the ability of the currency to be changed at any time is also a disadvantage. now take a look at the previous Luna, it is now changed to Lunc which is now called luna classic because it has lost its value. so for a currency to be changed at any time is also a disadvantage and hence leaves users and investors to be worried should incase of uncertainties.

• NOT REGULATED - This is also a great downside regarding cryptocurrency. it is yet to be regulated in all countries and because of this a user or investor who will like to invest more in it will then pause as though anything might happen at any given timeframe as though it might be banned forever. so this is also an issue or a disadvantage regarding cryptocurrency.

• VULNERABLE TO SCAM - The digital currency can as well be vulnerable to scams as we have noticed various tokens diving into the crypto world with the founder unknown and then promise investors some basic returns on investment that is so tempting when they pump little money into the token and it gets listed in Binance, and they notice that investors are now buying the tokens to make profits, they immediately do away with investors money. so this is another demerit regarding cryptocurrency.

• IRREVERSIBLE TRANSACTION - This is another downside of cryptocurrency. when a mistake is done in sending an asset to another wallet, the asset is gone for good when it does not get to the address it was sent to and this is a problem. users are not happy seeing that their assets have gone to waste. there is no recovery plan for it, so it is indeed a factor that is limiting the crypto world.

So the above are some of the major downsides of digital currency, and these many investors who will like to invest their money in cryptocurrency often get scared and prefer to stay away from such investment.

HOW DO YOU THINK MAJOR PROBLEMS WITH CRYPTOCURRENCY CAN BE HANDLED? LET THIS BE A RESPONSE TO THE DOWNSIDES HIGHLIGHTED EARLIER.

The major problems regarding cryptocurrency can be solved in the following ways.

• THERE SHOULD BE A WORLD WIDE GOVERNMENT REGULATION - With the various government of different countries, coming together and decide that the cryptocurrency should be legalized and accepted in all countries, and also to bring out a regulation regarding the cryptocurrency to be accepted by all, I tell you that we will see a new era in the crypto world.

• FOUNDER'S IDENTITY SHOULD BE MANDATORY - Although the cryptocurrency was built on a decentralized system, then there should be a by-law regarding the founder's identity should be made mandatory as this will protect investors from scammers' activities. with this, a user or an investor is assured that the token he or she is investing in, is legal and legitimate. with this approach, we will be assured that the token we're about to invest in is not a scam token.

• PRICE STABILITY - Price stability should also be established, just like other fiat currencies, no matter the fall in the value of that currency, it is not as high as the cryptocurrency. for example, one gets to see a coin in an $8 price range and the next minute notices a high fall in price to $4. it also affects investors as though one can lose money within seconds. there should be a way to work on crypto prices. it will be a good idea and a positive outcome.

DO YOU BELIEVE IN THE FUTURE OF CRYPTOCURRENCY? STATE YOUR REASONS. ANY RECOMMENDATIONS?

Yes, I vividly believe in the future of cryptocurrency, because of the problems it has solved and how it is profitable.

I am ever bullish regarding the future of cryptocurrency because, in 2008, we noticed the invention of a cryptocurrency which we all know as the Bitcoin and when it was established in 2009 till date, it has profit investors so well. imagine a token with a huge price range. investors that believed in the future of bitcoin made a lot of gains and ever since then, I do not limit any cryptocurrency token as though we are supposed to be optimistic. so I do believe in the future of cryptocurrency and I believe that a day is coming we will all smile again.

Also, the currency is built on a decentralized system, which helps users to execute transactions without the presence of a third party. this is to say I am giving someone money without anybody noticing, this is great. and with the ability of you to have a password to your assets without a centralized system monitoring your asset and activities is a great reason to believe in the cryptocurrency future. and I strongly believe that there are more spectacular features on the way.

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ANY RECOMMENDATIONS

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Investing in cryptocurrency is nice and well profited, but I will recommend that, as an investor who wants to invest his or her money in cryptocurrency, make sure that research is been carried out by you regarding the token you wish to invest to avoid loss of money. checkmate the historical and price market activity of the token before investing. this is a piece of financial advice.

CONCLUSION

I have come to the end of this contest, talking about cryptocurrency alongside the bullish and bearish view of it is so wonderful. and I have answered all questions in my view. all thanks to the steemit crypto academy for bringing up such an interesting engagement topic. I will like to invite @weasell, @badmus-official, @swaylee, and @victoh78 to participate in this contest too. Greetings!