Source
Greetings to all my friends at steemit, this week we will talk about the differences between cryptocurrencies and the conventional financial system. this is part of the assignment submitted by
@levycore at the cryptocurrency academy in week 6 of season 2.
What is the basic difference between cryptocurrencies and conventional financial systems?
The cryptocurrency is a de-centralized digital currency that does not have physical coins or bills, unlike our financial system, which has the bills and coins that everyone knows, currently, another aspect that could be taken into account is that In the business of cryptocurrencies, transfers can be made without the need for an intermediary, which in this case would be the bank since cryptocurrencies are a de-centralized asset, you are the owner of your own assets, therefore when making a transfer or any other transaction, you will not be charged any interest or fee.
One of the advantages of cryptocurrencies over our conventional system is that it is a de-centralized system unlike the conventional system, which is a totally centralized system, which makes it difficult for some actions that one or anyone wants to perform as a transfer. When a person makes a transfer from one bank to another bank, the waiting time for the assets to arrive is one to two days, which is not very advantageous when wanting to make an immediate purchase, but when making a transfer in cryptocurrencies the process is faster and the money reaches its destination immediately.
However, the advantage of our conventional system is that everyone knows it and it is the one that everyone uses as a payment method, around the world and although it seems silly, not all people are aware of the existence of cryptocurrencies, since they do not count with the necessary resources to find out more about the subject.
The disadvantages that cryptocurrencies have is the lack of credibility and that happens thanks to the well-known virtual scams and the people who do these scams look more than anything at people who are just starting out in the world of cryptocurrencies and who do not know anything. Still, thanks to this and misinformation there are still people who prefer the convensiona system.
Why is a decentralized system needed?
A decentralized system is needed so that there is greater freedom when it comes to wanting to do something like having money arrive on weekends or wanting to make a transaction at dawn, since most systems are not available at that time. operational or mostly they are in maintenance, another of the things for which decentralized systems are needed is for greater security since your money is in a bank, this can block your account when they want and therefore restrict your money for a indefinite time it is for this and for other factors that decentralized systems are needed.
Source
#What affects the value of cryptocurrencies?
There are some factors that can affect the value of cryptocurrencies such as: the mining cost, as everyone already knows, mining cryptocurrencies is a job that consumes a lot of capacity and energy to our computer since to extract coins you need to have a large available capacity.
Another situation that can affect the price of cryptocurrencies is that there is an exponential purchase of them, if this happened, this would probably lead to an increase in value.
Therefore, it must be taken into account that in your country the use of cryptocurrencies is legal, since there are countries that have not yet accepted the use of cryptocurrencies, as is the case in the country of Bolivia that has not yet legalized the use of cryptocurrencies. , perhaps in the future it will be legalized.
Why can't everyone be a miner?
In order to be a miner, certain requirements are needed that not everyone has: as a computational mining equipment with high capacity, since mining involves great energy, basic knowledge and knowledge are also needed.
advanced in the area of encryption, since all cryptocurrencies do not work in the same way, the way to mine depends on the system that the blockchain is used, those are the reasons why not everyone can be a miner, another one of the reasons is that when they see all the knowledge they must have and the high mining team they become demoralized or simply lazy having to learn what is necessary to mine.
Why can cryptocurrency transactions be considered more transparent?
Transactions can be considered more transparent due to the security they provide when transferring our assets, since each time we make a transaction, a record will be kept with the data of all these in case you want to verify your transactions or the payments you have made. Another aspect of significant importance is that when receiving or making a payment, you do not need any intermediary and you do not need any entity, we can also observe greater transparency, when we can make transactions at the time and at the time that you want, that we can do it ourselves, without intermediaries, or charging interest or commissions of any kind, you can buy or sell the amount of coins you want without any restriction, you can also exchange it immediately for other currencies if you wish, let's say we put our conventional system to the test with the cryptocurrency system.
.jpeg)
Source
I think it is more than obvious that the cryptocurrency system would be the winner, considering that in our conventional system, our movements are more restricted unlike the cryptocurrency system, in which we can move with extreme freedom, which means that these systems of Cryptocurrencies are made for risky people who are willing to invest whatever they can.
Explain how cryptocurrency developed in your country.
In Venezuela the cryptocurrency called Petro is handled, it is developed in this way: the Petro came to us with the idea of creating a strong currency backed by raw materials such as oil, gold and more mineral resources, the government at that time had The idea of creating around 100 million coins of which more than 50% were offered in stages, the remaining coins remained as a reversal of the state, but the Petro is not the only currency created in Venezuela, there are also others that I will mention then:
arepacoin
Arepacoin appeared in 2016 at the hands of developers with the idea of trading in the field of cryptocurrencies, but due to certain circumstances it was abandoned that same year, it was taken up in 2018 by another group of developers who modified the original source code and thus was born. the new blockchain called arepacoin, has the ability to be used as a market tool, sale, purchase, savings, services, goods and exchanges with other currencies.
Source
Onixcoin
The onixcoin was created in 2017 so that Venezuelans could alleviate the economic crisis that was being experienced at that time, due to the great success that this currency had they decided to do a restructuring to improve several details and their platform, the success of this currency was so much so that the creator was called by the government to be in charge of advising the creation of the Petro, however the page and the mining process of this coin did not come to be created if not until the year 2020, in these times not nothing else has been known about this coin.
Bolivarcoin
The bolivarcoin was created in 2005 to be able to overcome the economic crisis at that time, this currency is decentralized and open source, its main objective is that its great speed in liquidity another of the good things is its great ease when it comes to To be used of course in 2015 all this was new and not everyone dared to undertake with these currencies, it should be noted that this was the first currency created in Venezuela, it is possible to mine it and it has its own blockchain.
Conclution
In conclusion, decentralized systems have revolutionized financial processes in recent years, more and more people are betting on safeguarding their income with cryptocurrencies, since conventional financial systems have taken a back seat for many people around the world, where they prefer a fast, reliable, safe process and without intermediaries that provide transfer and efficiency when it comes to trading, it is for this reason that every day we must advance with technology in hand for a safe future and with sufficient knowledge of cryptocurrencies.
Porfesor
@levycore
Hi @anrosmarth, Thanks for submitting your homework
Feedback: You have completed every point and you have understood the basics of cryptocurrency
Rating: 6
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
gracias por su revision profesor
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit