Hello Guys,

How are you all my friends? I hope you all are well and happy. My name is @tasmiya today I am here to present to participating post in the Steemit Engagement Contest. Today our topic is how cryptocurrency has shaped the financial realm and what its future? Now a days this topic is very important. So let's start our work without wasting any time.

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An Overview of Cryptocurrency

I will start the post with an overview of cryptocurrencies its work and its history.

Cryptocurrency is a modern word. Cryptocurrency is a digital currency that we can use to meet our daily needs. As the word currency appears we can use it to meet our needs. We can use cryptocurrency for our trade. Thousands of years ago, the methods of trade were different. People trade their goods and took some things in return. As time went on the methods of trade also changed and people started using gold coins for trade and that was the beginning of our currency.

In the same way, over time, people have changed the way they trade, and today we are using pieces of paper for trade. People started to understand everything from these pieces of paper, but here it is not enough, this method also started to disappear and a digital currency came which we are known as cryptocurrency.

Cryptocurrency is a digital so it is designed on modern way. And it is working on exchanges. We can trade in cryptocurrency by using different types of exchanges. Using blockchain technology has made it easier to trade in cryptocurrency and transactions can be done very easily. The use of cryptocurrency has saved a lot of valuable time as all kinds of transactions are done online.

The basic of cryptocurrency is Bitcoin. The first bitcoin was created in February 2009 by Sir Satoshi Nakamoto. This is decentralized digital currency. The Bitcoin is said to be the father of all other currencies.

Draw a comparison between cryptocurrency and conventional currencies.

Before comparing cryptocurrency and conventional currency, we need to know what these two currencies are. Cryptocurrency is a digital currency and it is based on blockchain technology and conventional currency is traditional paper currency.
Here we will describe the similarities and difference of these two currencies.

Similarities

• The most important feature of cryptocurrency and conventional currency is that these two currencies are used for buying and selling goods. We can use both of these to meet our daily needs.

• One of the great similarity of these two currencies is that we can use them for our online transactions. Cryptocurrency is a digital currency and we can transfer conventional currency online through the bank.

• The value of cryptocurrency and conventional currency are affected by the condition of the economy of the country.

These are just a few of cryptocurrency and conventional currency similarities we've mentioned above.

Differences

There are some difference of cryptocurrency and conventional currency

• Cryptocurrency is a digital currency and is only used for online transactions, but conventional currency is a currency that we can use both online and in paper form.

• The value of cryptocurrency is not fixed its value, sometimes increases and sometimes decreases. The conventional currency came from the exact opposite of the cryptocurrency, the amount of which is fixed.

• Cryptocurrency is regulated in many countries and not in all countries, but the conventional currency is regularly legalized in all countries.

• The supply of cryptocurrency is limited, but the supply of conventional currency is unlimited.

• The cryptocurrency is not within the government while the conventional currency is within the jurisdiction of the government.

Explain the distinctive innovations of cryptocurrency and its downsides.

There are many innovations that cryptocurrency brought to meet the financial spaces. And it has some downsides of cryptocurrency.

One of the biggest innovations of cryptocurrency which is also the basic building block of cryptocurrency is called blockchain. They are digital ledgers who are very transparent and they have no external control over, which means they can't be compromised. Ever since they were introduced, they have been effective solving major financial problems. Double spending was the big problem for the people. Cryptocurrency solved this big problem.

Another major innovation of cryptocurrency is the concept of decentralized systems it introduced this system. Decentralizations mean that all fund transactions are in the hand of the consumer and not in the central authority. Decentralized system is a system in which users can customize their funds. Decentralized system is a modern system, replacing the traditional system which is a huge innovation.

The fee for transferring funds in cryptocurrency is lower than other traditional and conventional currencies. There is no period for transferring funds in cryptocurrency but there is some limit to the conventional currency which is within the government.

One of the great innovations of cryptocurrency is that people are able to live a happy life with the money they earn. some people are making money by trading, mining and investing in cryptocurrency. Cryptocurrency has improvements the lives of many people.

Downsides

There are many downsides of cryptocurrency but I will describe some of them in front of you.

• Criminal Transactions

The security of cryptocurrency is very high and no one can break its security. Because of this, a lot of illegal activities are being done through cryptocurrency. As many drug dealers use cryptocurrency to buy and sell drugs. On the other hand, terrorist organizations use cryptocurrency to buy weapons the government has a hard time figuring out where the -money came from.

• Scalability

One of the biggest problems with cryptocurrency is its scalability. When it compared to the traditional and conventional currency, the cryptocurrency lags behind in the number of transactions it handles.

• Price instability

We all know that the amount of cryptocurrency is not stable. The value of cryptocurrency is constantly rising and falling and this poses a huge problem for crypto traders. This is due to the unavailability of assets in the market. Those who are big investors benefit, but small investors harm because of them.

• Data loss

We all know that the security of cryptocurrency is very high and therefore there is a huge risk of data loss. If a person forgets their private key, their data is not recovered which is a big problem with cryptocurrency.

Here are some of the cryptocurrency downsides we mention above.

How do you think the major problems with cryptocurrency can be handled? Let this be a response to the downsides highlighted earlier.

There should be a group method for detecting high volume transactions in blockchain. For this purpose, the IP address of the seller and the receiver of the fund should be known and it should be stored in a suitable place to avoid any kind of misconduct.

The second problem is that they need to increase their security. This is an open process. Therefore, its security is very important. By strengthening our security, we can protect our data from being hacked by hackers.

In order to improve the functioning of the cryptocurrency, there should be an option to terminate any transaction so that the user can avoid loss in case of any error. For example, if a person sends an order to an incorrect address, the system should check that the current address is correct or incorrect. That way we can avoid our losses.

The developers or companies of the cryptocurrencies should provide his contact information to the users so they contact them in any situation. And they solve their problem. These are just some of the problems that can be solved.

Do you believe in the future of cryptocurrency? State your reasons. Any Recommendations?

I am confident for the bright future of cryptocurrency. Even since the advent of cryptocurrency, it has changed peoples lives. Cryptocurrency has revolutionized the world. The future of many countries is tied to the cryptocurrency. If we want to be successful in future, we need to educate our children about cryptocurrency and blockchain.

Many countries have regularized cryptocurrencies in their countries. We must also raise our voice in our countries to regularize the cryptocurrency. If we do not do this, we will be left behind. The future of cryptocurrency is very bright because the way to operate it is very simple and straightforward. Today we can also manage cryptocurrency on our mobile phones.

Therefore, I am very hopeful that in the coming days, the cryptocurrency will find its own place. Because it is a system that every country desperately needs.

Conclusion

Cryptocurrency is a digital currency that we use for our online transactions. Digital currency, also known as cryptocurrency, can be run with the help of internet. It started in2009 when the first Bitcoin was created.

The future of many countries in connecting with cryptocurrency. Therefore, I see a very bright future for cryptocurrency.

Thanks

@tasmiya