Steemit Crypto Academy | season 2| week1: How Cryptocurrency has shaped the financial realm by@mjoedavid

Greetings my friends, it's a privilege to participate in this challenge

Users are expected to briefly give an overview of cryptocurrency.

Cryptocurrency is a form of virtual currency or digital money that uses cryptography for security. A cryptocurrency like Bitcoin can be used to buy a coffee, you can use it to purchase services at Overstock, or even use it as an investment vehicle. However, there are some downsides to using the currency: decentralization means that no central authority controls it (which both gives advantages and disadvantages), your wallet is safer because it’s not stored in one place by an authority but you still must take precautions to protect your keys, and most small businesses do not accept Bitcoin.

It can be used to purchase goods and services, or as an investment. Cryptocurrencies make it possible to transfer funds directly between two parties in a transaction that has no intermediary.

Draw a comparison between cryptocurrency and conventional currencies

• The main difference between cryptocurrency and conventional currency is that cryptocurrencies aren’t controlled by any central authority like a bank, government or financial institution. They use decentralized technology instead of centralized computer networks, which allows users to trade cryptos from all over the world without needing to rely on other people or institutions and makes them impossible to shut down.

• Cryptocurrency and conventional currency are two different types of currencies. Cryptocurrency, It uses encryption techniques to validate the transactions and to control the creation of additional units of the currency.

• We can see that cryptocurrency does not have the same value and interest as a conventional currency. Cryptocurrency uses technology to store, transfer and process data in a decentralized system. On the other hand, conventional currency is controlled and managed by a central authority like the government.

• Cryptocurrency is a digital currency, transferred to people and organizations via the internet. It is decentralized and not controlled by any one organization or government. Instead, it is controlled by an ever-growing network of computers that help manage transactions.

• Cryptocurrency is a digital medium of exchange, designed to work as a medium for exchanging goods and services. It uses cryptography to secure transactions and control the creation of new coins.

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Explain the distinctive innovations of cryptocurrency and its downsides.

According to a study conducted on Fidelity, cryptocurrency has the potential to reach $10 trillion in market capital by 2023. Here are some major benefits of using cryptocurrency:

• 1)Decentralization - Decentralization means that no one is in charge of the internet and there is no single authority to govern it. If someone tries to change or manipulate any aspect of this structure, it becomes impossible.

• 2)Transparency – All users can see all records and transactions, which prevents malicious activities such as double spending.

• 3)Security – Any transaction or change in information has to be approved by many computers all over the world before it can become valid which makes hacking impossible as well.

The downsides of cryptocurrency

• Cryptocurrencies can be hard to manage, especially if you don’t know where to start. There are also downsides that come with using this currency. Keep reading to learn more about the pros and cons of cryptocurrency.

• Cryptocurrency has several disadvantages. For example: cryptocurrency is volatile in nature and it can be stolen or lost by a natural disaster, hardware failure etc.

• One of the biggest downsides of cryptocurrency is that it’s not centralized like other types of currency. That means that if a hacker were to break into a merchant's or exchange's systems, they could potentially steal all of the money. There are ways to manage this threat but it comes down to how much you trust the people who are holding your money for you.

• Another biggest disadvantage of cryptocurrency is the lack of protection against errors. This can lead to serious financial losses, as well as moral and psychological ones. As a result, investors are much more cautious when using new technologies. One of them is the cryptocurrency exchange platform, which means that all customers should be aware of all the features of this service before starting to use it.

• Cryptocurrency is not a safe investment. You can lose money, be scammed or even worse, fall victim to hackers. Some say it’s too volatile and hard to invest in.

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

• Cryptocurrency should be centralized : there should be a regulatory body that screens crypto projects before they are brought to the public. This will help reduce the rate of rugpull
• The public should educate themselves more on a particular coin before investing in it.
• There should be some sort of backup should Incase a user misplace is hardware wallet

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

Yes I believe in the future of cryptocurrency. Cryptocurrency is getting ready to make its mark on the world. It’s rising in popularity because it has many benefits that appeal to businesses and individuals alike. It’s more secure, convenient, and cheaper than traditional methods of payment.
Cryptocurrency is a form of currency that operates independently of any government. A type of digital cash, it can be stored on an electronic device or used for purchases. Cryptocurrency allows for anonymous transactions and does not rely on a third party — such as a bank — to authenticate the transaction.