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

Users are expected to briefly give an overview of cryptocurrency.

Cryptocurrency is a decentralized digital payment system that allows anybody to send and receive money without having to wait for the transaction to be verified by a bank. It's a peer-to-peer network that only lives as digital entries in an internet database. Each transaction is one-of-a-kind, and it's all kept in a public ledger. Digital wallets will be used to hold digital money. For storing cryptocurrency, we provide both hot and cold wallets.

The transaction's distinctive character is based on its term cryptocurrency, which refers to the fact that it employs encryption to verify the transaction. This sophisticated coding enables bitcoin transactions between wallets to be recorded on a public ledger. Bitcoin, the first and most popular cryptocurrency, was launched in 2009. Today, a slew of new cryptocurrencies have emerged, putting bitcoin up against stiff competition in the market.

All cryptocurrency transaction records are stored on the blockchain, a distributed public ledger maintained by currency holders. Its units are formed by a process known as mining, which involves using computers to solve difficult mathematical procedures in order to generate coins. The most frequent method is for users to purchase currencies and hold them in encrypted wallets. Users alone possess the key to cryptocurrencies, so keep that in mind. This key allows the user to transfer a record or a unit from one wallet to another.

Draw a comparison between cryptocurrency and conventional currencies.

• Form: Cryptocurrency is a digital money that is generated online rather than printed physically. Conventional money is the form that can be physically handled and is printed over time by a government official organization.

• Uses: On platforms that enable cryptocurrency and traditional currency trading, both are utilized to purchase and sell.

• Amount of Currency: Cryptocurrency has a fixed total supply at the start, which means it can't grow beyond that, preserving its worth over time. Traditional currency printing has no limits; the central bank may print too much at times, resulting in inflation.

• Anonymity: Users may use bitcoin to perform transactions without disclosing their identities. To use conventional cash through the business that provides it, one's identification must be validated.

Explain the distinctive innovations of cryptocurrency and its downsides.

• Blockchain technology allows for record history tracking transparency by logging cryptocurrency transactions on a public list. Because some people object to their information being made public, the privacy of user history is threatened.

• Cryptocurrencies are subject to a significant risk of losing value. Because currencies have no inherent value, if a large number of businesses or individuals migrate to another currency or cease using it, the value of that money will collapse due to its volatile nature.

• Getting rid of the middleman: Cryptocurrency is based on a peer-to-peer system, which eliminates the need for middlemen in transactions. Payment methods do not necessitate the involvement of financial institutions like banks.

In the absence of institutions such as banks, it is extremely difficult to impose limits on cryptocurrencies. No company has the authority to create policies to protect its consumers' money. In the event of a fraud, the user will have no one to turn to for help or support.

• Fast transaction rate: Cryptocurrency transactions can be completed quickly and easily using a smartphone or computer. When sending cryptocurrency from one digital wallet to another, a public address is utilized.

How do you think major problems with cryptocurrency can be handled? Let this be a response to the downsides highlighted earlier.

• Privacy Issues: Because every record is public and might fall into the wrong hands, cryptocurrencies are vulnerable to cybersecurity breaches. In my opinion, the technology can be improved by incorporating some of the existing banking system's cybersecurity and privacy protections.

• In the absence of a regulating body: Many people will be hesitant to adopt a money that is not under the supervision of a bank or a government. Even if all of the other drawbacks are addressed and the government does not accept and control the technology. Using such a currency entails a significant risk.

• Value Depreciation: The fluctuating nature of crypto currency pricing raises concerns about the financial world's future. The easiest approach to deal with this, in my opinion, is to relate the currency's value to tangible and intangible assets. Another alternative is to encourage more people to use the currencies, which would increase consumer confidence and reduce the currency's volatility.

Do you believe in the future of cryptocurrency? State your reasons. Any Recommendations?

Yes, I am convinced that cryptocurrencies have a bright future. As I have stated, the area of worry is regulation, in which governments are taking a keen interest. Regulations are a major hurdle, and if governments can find a way to accept cryptocurrencies, we should expect a significant shift in implementation and pricing.

Finally, data demonstrate that the current price of the leading currency Bitcoin influences the price of altcoins. Because of its widespread acceptance, it is expected that its price would explode in the future, causing the price of altcoins to rise as well.