Steemit Crypto Academy Season 2: Learn About Cryptocurrency /my homework for @levycore by @mubeenaslam

Hi everyone. Hope you will be fine and would be in an emerging world of motivation and hard work.
First of all, I want to say thanks to dear mentor @levycore who has explained the lecture very well.

1:What is the fundamental difference between Crypto-currency and the conventional financial system?

The main and primitive difference between crypto-currency and conventional currency is:
The conventional financial system is Centralized like banking system, while the system followed by crypto- currencies is Decentralized.

Centralized system:

means whenever some two parties do transaction, they manipulate their transaction by using banks, ATM cards, CREDIT cards or any such means of transaction so they use bank as an third party mediator. So when one party send money to other’s bank account number, so, before it reaches to other person, firstly, it hold out in bank then devolved in other party’s account.
While

Decentralized system:

is a medium of exchange used by crypto currencies to transfer funds. whenever two parties do transaction, they directly transfer amount to each other without using any third party as p2p peer-to-peer transactions. So, crypto currencies are not regulate by any authority or any central system of transformation like banks.

2. Why is a decentralized system needed?

Decentralized system is needed because of following reasons:
• There is no restrictions everyone can make the transactions in decentralized system.
• Decentralized system offers fastest transactions than conventional financial system, because, conventional financial system often takes 2 to 3 days to make payments. so, faster transactions can made human beings able to perform all of his daily jobs faster like he can plan for something faster and can fulfill his needs faster, as he can receive payments faster because of decentralized system.
• To be safe and more efficient than conventional financial system Decentralized system offers safe and efficient transactions by not relaying on any third party like banks, you can make direct p2p transactions that is there is no need of any intermediary.
• In decentralized system, you are not needed to any locker of safe to save your money like in banks, you can easily and more reliably can perform decentralized transactions on your computer, laptop, mobile phone or tablet.
• And if you have a full command on decentralized system there are less chance of Fraud because in decentralized system, a hundred of thousands of Miners always check and authenticate the transactions. And you can immediately appeal if someone tries to fraud.

3. What affects the value of crypto currencies ?

source
• The value of crypto currencies varies as same as of fiat currencies, there is Basic rule, known as DEMAND AND SUPPLY.
• We can understand this rule as whenever there is more demand of a coin,which means, when more people are buying the bitcoin than people selling the bitcoin or you can say that when more people are holding the coin than people releasing the coin then value of coin eventually increases as the demand for coin is increases and vice versa.

• The value of crypto currency also depends upon the resources used on the production of coin, like the high resources of energy are usually used in mining the bitcoin, so, that’s why bitcoin’s value is increasing day by day.
• There should be a other reason also, Whenever a coin faces any scandal or scam, this gives the coin a hype, and that particular coins becomes popular and people started taking interest in that particular coin. In this way, a coin can gain high potential in short time.

4. Why can't everyone be a miner?

Everyone can’t be miner because in crypto currency mining there is a need of specific CPU’S and GPU’s with highly specially designed hardware, and there miner should also have great expertise in this field because there might be use of highly mathematical calculations to add new blocks to block chain and the miner should also be expert in cryptography.. An other reason, that everyone can not be miner is that mining costs very high, according to a survey, million and billion dollars of electricity is required only to mine bitcoin. So these are some reasons, that everyone can’t be miner

5: Why can crypto currency transactions be called more transparent?

As crypto currency is a block chain, so, when someone transfer amount, the blockchain platforms don’t use the original identity, they use the public addresses, so, anyone can’t hack or tampered the transaction easily, as, it consists of blockchain, so, if someone will try to hinder the transaction, the hacker must have to change every other blockchain ledger on a single ledger and I think this is nearly impossible. So, I may called the cryptocurrency transactions as the “Name of transparency” So, that is why, crypto currency is considered as the more transparent.

6. Explain how the development of cryptocurrency in your country?

As for as regulatory of crypto currency is concerned,till now it is not official by government of Pakistan. But as far as the development of crypto currency in Pakistan is concerned, it is eventually gaining popularity. A famous guy from Pakistan waqar zaka(who is a reality show host and social media influencer) is a first guy that has raised his voice as a voice of youth on front of court and regulatory authorities to make crypto currency official. He is guiding the youth of Pakistan to come in the industry of crypto since 2017-18. And he has also influenced many Pakistanis to join the crypto industry as he has almost 3.6 million followers on facebook. So, he is the guy, who introduced most of the youth of Pakistan to crypto currency. Overall, I fell like the future of crypto in Pakistan is very bright.

7. Conclusion:

As a concluding point of view, I think that decentralization is something that could give the humanity bright future. As more as decentralization implemented in our lives in near future, we will be free from authority of a single body or you may say as free from the system of centralization and will be more secure, more efficient and more transparent from the financial point of view.

At the end, I again say thankx @levycore who has provided us such a great platform to learn.

Hope for your positive response.