Steemit Crypto Academy Contest / S2W1 - How Cryptocurrency has Shaped the Financial Realm. What is Its Future? BY @prince4icon

INTRODUCTION

Greetings great people of Steemit Community! It is a good thing to be back in this adventure filled engagement. It was really fun partaking in the last season's contest and it good to be back again.

The Cryptocurrency Ecosystem is a fast growing Ecosystem that is almost matching up with the other conventional currencies. What has made it not to taken over the financial institution of the world is because some countries has refused to approve it use in their nation and also because of it volatile nature, so many people are afraid of taking risk not knowing that it's risky not to take risk.

overview of cryptocurrency

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Cryptocurrency is a currency that exists only in digital or electronic form that operate independently of a central bank which is an alternative form of payment created using encryption algorithm.

The introduction or use of encryption technologies makes it possible for Cryptocurrency to function as both currency and as virtual accounting system. Cryptocurrency wallet are tools that is very important for anyone that wants to do business with Cryptocurrency because it allows the storage of the Cryptocurrency user's encryption keys that confirms your identity and link to your Cryptocurrency.

One of the unique features of Crypto currencies is that it's a Decentralized blockchain based digital Currency, which makes it easier for people to carryout transaction without any third party system. It is a currency that is open for all to trade and do business with.

This currency can be used for any transactions like other conventional currencies. Its payment mode is more of a digital system that doesn't require bank to verify transactions.

There are thousands of Cryptocurrencies, but some of them are;

Bitcoin

This is the first Cryptocurrency to be known and the most traded, it was founded in 2009 and develop by Natoshi Nakamoto.

Ethereum

Ethereum is considered as a blockchain platform which was developed in 2015, it has it own crypto currency called Ether (ETH) , it is the second most popular Cryptocurrency after Bitcoin.

Steem

I can't list Cryptocurrency without adding our own outstanding coin called Steem which was founded in the year 2016. I believe in the next few years that steem would be a Force to reckon with in the world of Crypto currencies.

Comparison between Cryptocurrency and conventional currencies

Cryptocurrency and other conventional currencies have their similarities and theirs differences.

Differences

Key points	Cryptocurrency	Conventional Currencies
Definition	Cryptocurrency is a currency that exists only in digital or electronic form that operate independently of a central bank which is an alternative form of payment created using encryption algorithm.	Conventional currencies is a medium of exchange that be in any form especially in circulating banknotes and coin.
Examples	Cryptocurrency and virtual Currencies	Commodity money and Fiat money
Transaction verifications	Transactions are done using a code as the digital signature that is generated by the algorithm.	Transactions are done using code generated by a financial institution.
Transaction cost	The cost of transactions is minimal	the cost of transaction is much because of the presence of third party.
Lost	There are much lost in the system because of it decentralized nature, any mistake can be costly.	Minimal lost.

Similarities

Even though Cryptocurrency and conventional currencies are far apart in terms of difference, they some things they share in common. Some of them are;

Digital form

Both Crypto currencies and conventional currencies can exists in digital form. Record has it that 90% of our conventional currencies are in digital form.

Variates

Both Crypto currencies and conventional currencies have so much types of their kinds. For instance in Crypto we have Bitcoin, Steem, Hive and so on, and in conventional currencies we have US dollars, Euro, Pounds and so on.

Trade

Both Crypto currencies and conventional currencies can be used as a medium of exchange while trading, you can purchase items with both currency.

Instability in value

Both Crypto currencies and conventional currencies fluctuate in terms of value, but the fluctuations in Cryptocurrency is more.

distinctive innovations of cryptocurrency and its downsides

What makes Crypto currencies special are the unique features that it came with which other conventional currencies are lacking. It is these unique features that may make Crypto currencies take over the financial world very soon... Some of these unique innovations are fast transactions, Decentralization of the System, peer to peer, Anonymous transactions and permanent transactions. For me these innovations are what makes Crypto currencies unique and fast in her growth. A system that came not too long is gradually dominating the financial world. For me I would talk about it Decentralized nature.

Decentralization

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This is one of the innovations in Cryptocurrency that I won't stop talking about. It has made transactions easy and almost cheap by eliminating third party barrier. Most of our financial institutions build their institution with the proceeds they acquire from playing a third party role in most transactions. That is why in Nigeria my country we have so many black market where we go to change our foreign currency to our Nigeria Currency. The price of exchange is usually far far different from it price in the exchange market.

The introduction of Decentralization has eradicated the so many insult we receive in a centralized setting. Just imagine being insulted for your own money which for me is something crazy. At times you would be made to be in a very long queue just to have access to your own money, it's sounding so nice as am typing it but if you have been in this experience you would know is not something sweet. At times you would want to access your money and you go to the nearest ATM machine to withdraw and you will find out that there is no money in the machine, when you enter the bank to complain you would be insulted.

Decentralization is one the unique innovations Cryptocurrency has brought into the financial Ecosystem which is the best for me. It is because of Decentralization that is why other innovations like fast transactions could fit in...

Downside

The downside for me is CRIME, because due to the Anonymous nature of Decentralization it has a strong tendency to attract crime agent. This is one of the reasons many government are not willing to approve it because of what fraudulent individuals are using the innocent system to do.

Secondly for me is the VOLATILE NATURE of the Currency. Most of the Cryptocurrency that uses this Decentralized blockchain are very volatile. This minutes you are on high and the other minutes you are on low.

How to handle this problems

In the area of the crime I believe if the system can create a medium of communication that gives it access to her customers then it would be easy to track those criminals. The Anonymous nature of the system is what this crime agent are capitalizing on to perpetuate crime and bring bad name to the System.

In the VOLATILE NATURE of the currency I still believe that a channel of communication would go a long way in minimizing it because what causes the currency to fluctuate is the consistent PUT AND TAKE done by big investors because of fear of uncertainty, but if there are standby channels of communication that helps to identify any top investor, and proper counsel is issued to him to assure him of his investment it would be hard for him remove his investment.

Do you believe in the Future of Crypto currency?

I believe in the future of Crypto currencies with the following reasons;

There's no standing establishment that stood without shaking, there are always times of shaking in anything that would stand and the Crypto Ecosystem would not be exempted from this process.

Digital currency has come to stay and there is no going back. One of the reasons why many investors would commit their all to Cryptocurrency is because it profit oriented. Other conventional currencies that have been digitalized would not give you much profit as Cryptocurrency. For instance if you have one dollar your one dollar is just one dollar, if there is any alterations in the value it would have minimal effect on your profit, but 1 steem can be 1 dollar today it can be 2000 dollars tomorrow and what people seek is growth and not stagnation. I believe the best time of Crypto currencies is yet to come...

Recommendation

I want to counsel every traders and investors to invest with this one thing in their mind NO MATTER HOW DOWN YOU CRYPTOCURRENCY GOES IT WILL SOON GO HIGHER THAN IT WENT DOWN WITH TIME JUST DON'T PANIC THIS IS THE RULE OF THE GAME

I invite @nanya to participate in this contest.