Steemit Crypto Academy | Learn About Cryptocurrency| Homework task for @levycore

Hello All Steemians !!!

On this occasion, I will try to take a class at Steemit Crypto Academy. I am interested in joining this class because there are many new lessons that I will get here. I will do homework task from professor @levycore. Lesson discussion about Learn About Cryptocurrency. Lets try...

SOURCE

1. What is the fundamental difference between Cryptocurrency and the conventional financial system

The times that have been continuously updated from the past to the present have brought many changes, especially in the world of the financial industry. The presence of cryptocurrency at this time has provided many benefits for everyone who is involved and requires various kinds of financial transaction processes. Of course there are many differences between cryptocurrencies and conventional financial systems. This is an update of a system managed by the real world to a system that is managed by the virtual world.

The goal of this update in the financial industry is of course to improve quality with various functions, features, characteristics, systems, processes, advantages and all that are related. Lots of people have put forth brilliant thoughts and great contributions to make this happen. Now it is in a transition period where the use of cryptocurrency and conventional financial is still the same needed for all people.

The main differences between cryptocurrency and conventional financial systems can be seen from:

• Management
  Cryptocurrency use protocols and consensus algorithms that manage all the various transaction processes that run on the network. Cryptocurrency is regulated by a deal that is already available on the system and instructs a computer that contains of all incoming transactions and completes the process.
  Conventional financial uses a central authority and government that regulates all transaction processes in the financial industry. This makes everything based on legal and trustworthy laws and regulations that make the system safe.
• Transfer
  Cryptocurrency have incredible transfer speeds for making transactions. By relying on the digital transfer system in one country and different countries, it still has the same speed which only takes time per minute.
  Conventional financial takes a long time for making transactions. Particularly for transactions between countries, verification and conversion between currencies is definitely required by financial institutions. This requires several stages of a time-consuming process.
• Cost
  Cryptocurrency only requires a small fee to carry out each transaction process. Conversions between cryptocurrencies carried out on exchange platforms only cost a small percentage.
  Conventional financial requires a big fee to carry out each transaction process. Conversion of fiat currency to various countries in financial institutions takes a large percentage fee.

2. Why is a decentralized system needed?

• No Investment Limit
  Decentralized system is needed in every major investment because there is no limit to adding and developing investments. Investors are free to choose investments that have great potential in various fields. This system offers and makes it easy for investors to generate large profits over a long period of time.
• Transparent Publication
  Decentralized system is needed in the investment that has been made by investors. The transparency of the system used provides benefits and openness to access transactions carried out by everyone involved. This does not make to hide about fraud or loss so giving it more confidence for all investor.
• Full Control Over Investment
  Decentralized system is needed to control investments that have been carried out. The existence of full control that runs on the system makes no interference from other people or third parties that affect the investment. This makes all processes that are going to happen safe and running according to instructions.

3. What affects the value of cryptocurrencies?

• Transactions in Large Quantities
  This can affect the value of cryptocurrency because buying and selling of crypto assets in large quantities allows the coin price to go up or down and lure other investors to participate as well. This made the supply of coins even smaller and scarce. This is followed by market trends, market demand, transaction volume and market cap which are the main factors in determining the cryptocurrency price.
• Power of Influential People
  This can affect the value of cryptocurrency because opinions conveyed by influential, strong, and rich people can make other people in crypto world speculate in terms of buying or selling crypto assets. This has been proven by Elon Musk who managed to make cryptocurrency prices go up and down with just a few tweets on social media. This has seen investors and traders flock to buy coins involved with influencers.
• Burning Coin
  This can affect the value of cryptocurrency because burning coins can cause the availability of coins to be less and the demand for coins is getting bigger. The scarcity of coins affects the price of the coins in a short period of time. This also includes news or the lure of burning coins which can affect the market because investors are busy buying these coins at the same time.

4. Why can't everyone be a miner?

• Requires Capable Computing
  This has made it difficult for everyone to become a miner because it requires computation that is good, feasible, powerful, high technology, and capable of carrying out the mining process for a long time. To get this computation is required to have a very large amount of money because everything is very expensive. his computation can be obtained and purchased at a special place for miners.
• Expensive Maintenance
  This has made it difficult for everyone to become a miner because it is not just a huge upfront investment to buy computation. However, all the equipment connected for the mining process must be maintained at all times and it costs a lot. If you experience damage to the equipment, you have to pay more and many other unexpected costs.
• Government Prohibition
  This has made it difficult for everyone to become a miner because in some countries cryptocurrency and cryptocurrency mining is illegal. This is included in the government prohibition that makes a person unable to do anything. If they violate, they will be prosecuted legally and given the appropriate punishment.

5. Why can cryptocurrency transactions be called more transparent?

Cryptocurrency transactions are transparent due to the availability of recording and reporting of all transactions that occur in the network with the blockchain system. All things related to the transaction process can be accessed and visited by anyone through the web and pages of each blockchain. This is public, so making it easier for users to find what is needed and open to everyone.

Also cryptocurrency transactions are transparent because all information and transaction history that has been done cannot be changed, manipulated and deleted. This makes it has a high level of honesty and accuracy and minimizes the existence of fraud, embezzlement, and abuse.

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

The development of cryptocurrency in my country Philipines is still in the intermediate category. Some people know everything about crypto and some don't. Most of those who enter the cryptocurrency world like me are people aged 20-35 years. This is dominated by young people who are still in school and have finished school. The high velocity of money in the cryptocurrency world has attracted many enthusiasts to work via digital and earn money. This is an easy thing and also has a high risk.

For some other people, maybe there are those who already know about cryptocurrency but don't want to jump in here because they have their own reasons. And there are those who may not know anything about cryptocurrency. Actually, the development of this cryptocurrency has often been discussed in various media and sometimes becomes a hot topic. I believe that over time the development of cryptocurrency in my country will definitely reach highest level one day when the use of digital coins has been implemented in various aspects of life.

7. Conclusion

Cryptocurrency is well known by many people and is used as an investment and payments. The influence of cryptocurrency is starting to have an impact on lives. For some people, cryptocurrency may be a major concern in getting profit. This is influenced by various factors that can make the value of cryptocurrency go up and down.

The system that is run in the cryptocurrency world is very beneficial for users. Maybe in some countries cryptocurrency investment is still illegal so some people cannot become miners. All these things are interconnected and make cryptocurrency an important concern in life.

Thank you for the time and opportunity to develop the knowledge I have. Hopefully it will be useful for all readers.

CC :
@levycore
@steemcurator02