Crypto Academy Week 14 - Homework Post for [@levycore]: Learn About Cryptocurrency

Cryptocurrencies in a broad sense are a spectacular world of options in every way; and every day it is possible to learn more regard it, because learning never ends, and every day new possibilities and options arise around this topic, and what makes this precisely so, is that the world is finally waking up and beginning to understand its implications and potentialities in a truly clear, practical and concise way.

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What is the fundamental difference between Cryptocurrency and the conventional financial system?

Cryptocurrencies differ from the conventional banking system as much as the night of the day. In a practical sense, the fundamental difference is that cryptocurrencies work in a decentralized way, allowing anonymity and even reducing commission and intermediary rates.

In the conventional banking system, only country banks can issue securities or assets (or in other words, only they can print banknotes); but with cryptocurrencies, anyone with the necessary means, equipment and resources can mine and generate them.

Why is a decentralized system needed?

A decentralized system such as the blockchain in the case of cryptocurrencies, is necessary because it guarantees impartiality, justice, neutral character, and the security that no one will change the rules of the game in their favor at any time, and this, no matter how much they want to do it.

In addition, a decentralized system at the registry level is unsurpassed, because they are databases where everything works flawlessly, automated, coherent, indelible and without disturbances; which makes it suitable for an infinite number of uses in today's modern world.

An automated and efficient decentralized system is necessary in anything that involves the mediation of the relationship between two or more people, because it guarantees that everything negotiated, and agreed, upon, is unfailingly fulfilled and is registered as a synonym of compliance, of faith. and in fact.

In a decentralized system, relationships do not depend on the mediation or good faith of unknown third parties, but on the same system per se, which guarantees transparency, efficiency and compliance with the established parameters.

What affects the value of cryptocurrencies?

I think that what really affects the price of cryptocurrencies is the perception that exist of them both in a general and a specific sense.

At a general level, when any news (of medium or highly relevant importance) arises that makes cryptocurrencies perceived as a threat or as a possible globa risk of scam, then the crypto market in general (in terms of prices) is very negatively affected.

And exactly the same, but in the reverse direction, it happens in the opposite case, that is, when a news item that suggests the growth and adoption of cryptos comes out, then they all begin to raise their price levels.

At a specific level; we need to understand that each cryptocurrency has its own market force and community that supports it, causing each project to increase or decrease depending of different causes and in different percentages compare to any other cryptocurrency. Although it must also be said, BTC affects the value of the entire crypto world, that is why, if it rises, or falls or anything happens to it, all crypto prices will be influenced to a greater or lesser extent by that fact.

Why can't everyone be a miner?

Mining cryptocurrencies requires many things, such as knowledge, equipments, money, an environment or country that has low cost of electricity consumption (and that has not penalized or demonized crypto mining activities), etc. So the mentioned are in my understanding, the fundamental reasons that makes impossible that everyone can be a miner.

Why can cryptocurrency transactions be called more transparent?

Cryptocurrency transactions are more transparent, because thanks to the public database that records their operations (or blockchain), everything is established in a true and clear way.

In addition, cryptocurrency transactions work transparency also due to the fact that they are independent systems from the normal banking system, and third parties that only want to enter to take advantage of them.

And in terms of operating scheme, cryptocurrencies far exceed normal money, in speed, accessibility of transactions from any country you want, and reduction of fees; not to mention the fact that no matter how large being the amount funds that are transferred, transactions are executed quickly, for sure and without question; even between different countries.

Cryptocurrencies offer scalability, and liquidity anytime, anywhere. And that, my friends, is what I call transparency.

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Explain how the development of cryptocurrency in your country?

My country is Venezuela, and everyone knows that it is one of the countries where people use the most cryptocurrencies. The reason for this is simple, cryptocurrencies help to raise our quality of life, by being able to provide us with an income worthy that allows us to satisfy our personal needs in a country environment where inflation and shortages are the order of the day.

In Venezuela I financially support myself and my family for the knowledge and use that I make of cryptocurrencies; And like me, I personally know thousands of cases of compatriots of mine who do the same as me. All possible types of cryptocurrencies are used in my country, but I think that at a general level (without having done a deep study of this that I am going to say), the most used are Bitcoin, TRX and Steem.

Projects, initiatives, communities and businesses of all kinds; are created in Venezuela every day thanks to the use that people make of cryptocurrencies, and that has allowed their development and adoption to be greater and greater in the country.

Conclusion

Cryptocurrencies have become a way of life, because due to their great possibilities, they are an alternative for anyone who wants to progress in a real and consistent way in any place of the world.

Due to the decentralized nature they have in terms of their nature, the freedom of action they offer, transparency and all the other things that characterize and define them, it is why cryptocurrencies will increasingly gain more followers in the world everyday.

Well, this is my participation in the Crypto Academy, in this week 11, and doing this task for @levycore (Indonesia). Until next time!