Crypto Academy Week 14-Homework For @levycore [Learn about Cryptocurrency] by @tmighty
INTRODUCTION
What is the fundamental difference between Cryptocurrency and the conventional financial system?
The fundamental difference between Cryptocurrency and the conventional financial system is that cryptocurrencies exist as online digital asset only while the conventional financial system exists in notes, and coins having a tangible form which allows them to be touched and felt.
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Other diffences include:
Cryptocurrencies are only digital assets that governments do not control. They are even referred as illegal by some government and for that reason are not accepted as medium of exchange by them where as the conventional fiat currencies are controlled by the government and are accepted as a legal means of exchange for trades.
The means of exchange for Cryptocurrencies is purely digital as they don't have a physical form where as the conventional financial system operates both the digital and physical method of transactions.
While cryptocurrencies have limited supply, meaning every Cryptocurrency that comes into the crypto market has a market cap, conventional fiat currencies do not have limit in supply. They are constantly in supply for lifetime.
Why is a decentralized system needed?
Cryptocurrency decentralized means of exchange was developed as a result of the itch and failure experienced using only the centralized conventional financial system.
A decentralized system is needed for a some reasons. This are explained below.
It is quick and fast: Decentralized systems are needed for easy, quick and fast transactions between two parties. Transactions between two parties in decentralized systems takes no much time in their execution. In a period between 30 seconds and 3mimutes, the transaction has been executed successfully.
Transactions in a decentralized system allows trading over a long distance. This eliminates the problem of dealing with people who are miles away or in another country or continent of the world.
Decentralized systems offers a better security system. In all facets, the security systems of decentralized systems are more secure compared to centralized systems making sure assets are secure.
Decentralized systems allows transactions between two parties without the interference of third party which can cause a delay in transaction time.
What affects the value of cryptocurrencies?
Cryptocurrency prices do not just go up or go down without any cause. There are certain factors that influence the price of cryptocurrencies.
The more they are demanded and are supplied, the more they increase in value.
The more people invest in a particular cryptocurrency, the more the price goes up and vice versa. People who invest in cryptocurrencies have a place in promoting the price or value of a cryptocurrencies. For cryptocurrencies who do not have investors to invest in them, their prices will go down.
The more people trade on a particular cryptocurrency, the more the price goes up and vice versa.
Cryptocurrencies which are continuously traded by crypto traders becomes volatile over time. This results in the upward movement in the price of such coins. In the absence of this continuous trading on a cryptocurrency, the price will be less valuable in the crypto market.
Why can't everyone be a miner?
Cryptocurrency mining is a very technical and difficult process everyone cannot dabble into. It involves solving cryptographic problems or puzzles. For anyone to be able to mine a coin, he or she must have been taught how it is done. Mining involves so many steps that does not only require the work of only one miner but the combined effort of different miners in different locations.
For one to be a miner, the knowledge and connection is very paramount. The knowledge can be easily gotten but the connection is not easy to get.
Why can cryptocurrency transactions be called more transparent?
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Cryptocurrency transactions are very transparent. No one can lie about amount a coin sent to a wallet. This transparency is possible as a result of the blockchain explorer provided by the cryptocurrency decentralized system. With the blockchain explorer, one can check the dollar unit of every digital asset sent between two people. This militate against arguments and disagreements that may arise while transacting with both new and old customers.
Explain how the development of cryptocurrency in your country?
Development of Cryptocurrency in Nigeria
The development of cryptocurrency in Nigeria has taken a very slow pace because of bad leadership and the the ignorance of citizens.
Since 2008 when Bitcoin was created as the first cryptocurrency up till date, my dear country has struggled with accepting cryptocurrency. Not even up to half of the ever growing population of Nigeria have any idea about cryptocurrency. Till today, when you tell some persons about cryptocurrency in Nigeria, they will ask what is that?. For some that knows little, they don't open their heart to accept crypto as a safe means of getting income and also transaction.
The government is not even helping the growth of these digital currency. They see it as illegal and therefore unsafe for their citizens to deal on crypto. Earlier this year, the Nigerian government placed a ban on anything that has to do with cryptocurrency. The Central Bank instructed all the commercial banks to close down all the bank accounts in their system that have once been associated with any crypto transactions.
The only thing that allows the growth or development of cryptocurrency in Nigeria is the high rate of unemployment in the country. This has made the youths of this country to look for a way to survive. Cryptocurrency trading and investing is a means of income for many Nigerian youths who know the worth and gain that can be acquired through doing cryptocurrency trading and investments.
This is my entry!
Hi @tmighty, 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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Thanks @levycore my amiable Prof.