Crypto Academy Week 14 , Homework task for @levycore
Hello my people in this great platform welcome to week 14 of learning and earning in the greatest community in steemit which is steemit crypto academy and this task i am about to complete was given by our professor @levycore so lets get this article completed.
1). What is the fundamental difference between Cryptocurrency and the conventional financial system?
The Fundamental difference between Cryptocurrency and the conventional financial system is the difference in the way their system operates because crypto operates 90% decentralized while conventional financial system to explain this further read below.
Cryptocurrency
Crypto or cryptocurrency is a common name given to any digital currency project built on a blockchain, it is called digital asset because you can't see it without a digital screen like your phone screen or pc screen and also it can only be transfered to those who are in cryptocommunity examples of crypto are Bitcoin, Litecoin, TLM, BNB, Doge and so many more.
The blockchain technology, on which cryptocurrency is built is decentralized. This means that the system is not controlled by a central body therefore transactions can not be hindered by a third party.
The conventional financial system
The conventional financial system also known as the conventional banking system is centralized in nature also known has fist currency are in paper, metal or plastic form.
The conventional financial system is controlled and monitored by the government body from a central server and transactions can be hindered when fraudulent transfers are suspected.
2. Why is a decentralized system needed?
Decentralized System has many reasons why it is is needed and those reasons are:
I). It provides a independent environment: Meaning you don't need to trust the party you are sending your token to, because the system is programmed to complete the transaction with evidence through smart contracts, therefore frausters can not fake transactions or deny it because it is open for everyone to trace.
II). It improves Transparency: Transparency is what everyone want to see in whatever they are investing their money in so that fall in the hands of scammers.
III). It Improves security: it improves security by reducing hacking activities that we normally experience in centralized platforms.
3). What are the things that Affects the Price Of Cryptocuerrency
I). Increase in Demand of a token will increase the price long term or short term depending on what is the trend of the market.
II). Bad News or sell out from a whale affects the price significantly like today where i experience the fastest crash in crypto history because of bad news of china banning crypto and elon musk selling a large amount of crypto.
4). Why We Can’t All Be Mine crypto
Mining involves a lot of resources and electricity therefore it is very expensive to set up a Mining Rig not every has access to large capital Besides the technology used is more advanced and sophisticated require much learning and experience so most people don't mine because it costs a lot and it easy operate.
5). Why Cryptocurrency transactions could be said to be more transparent
I). Transactions that are done on decentralized system are done where no third party is needed, therefore there is trust.
II). Every Transaction carried out can be traced therefore it is more secured than fiat currency.
III). Every information are there for the public to see so there is no hidden agenda.
6). Development of Cryptocurrency in the country i stay in now which is Nigeria
Cryptocurrency is or was developing well in my country but the current government which is the APC government that every one hates are more interested in cows than actual technology so the banned banks from processing cryptocurrency transactions but we the youths are very stubborn in a good way because we know that decentralization is what the world need right now because since we had centralized systems things just get worst everyday that is why need cryptocurrency so the government stop banks we started trading P2P, they can't stop us now.
During the covid 19 Lockdown a lot of business that were managing became worst, people were literally going bankrupt and crypto came in the picture and people saw hope especially in Nigeria that is among a list of countries with high poverty rate will accept this and gain from it but they said no while developed countries like USA are accepting it that is why i say the developed will stay developed forever because they are more wise so the development of cryptocurrency in my country is not doing great at the moment.
Conclusion
Cryptocurrency is what the world really need to overcome a lot of things but so rich people don't like it because they want remain rich and in control any way thanks for reading.
Cc: @levycore