Crypto Academy Week 14 - Homework Post for Professor @levycore

Source:https://www.istockphoto.com/photo/bitcoin-symbol-with-financial-chart-over-dark-background-gm1043663584-279361300?utm_source=pixabay&utm_medium=affiliate&utm_campaign=SRP_image_noresults&referrer_url=http%3A//pixabay.com/images/search/bitcoinfree%2520pictures/&utm_term=bitcoinfree%20pictures

1. What is the fundamental difference between cryptocurrency and conventional financial systems?

The fundamental difference between cryptocurrency and conventional financial system is that cryptocurrency is a virtualized currency used as a legal tender which is not influenced or controlled by government policies, banks or any third party while conventional financial system is a legal tender which is centralized and is totally controlled by government policy, banks or a third party

Cryptocurrency is totally decentralized, transaction happens between 2 people there is no middle man. It cannot be manipulated by government or any bank, cryptocurrency is the opposite of conventional financial system because in conventional financial system it can be easily manipulated or influenced by Government policy and Banks.

1. Why is a decentralized system needed?

~I decentralized system is needed because that is what actually makes cryptocurrency more trustworthy

~A decentralized system is needed because it separates customers from bank failures and some unfavorable government policies and bank charges

~A decentralized system is needed because concentration of power to one particular government might lead to misuse and manipulation of power which will affect people's fund.. As they say "power corrupts "
So this way our funds are safe and secured, free from corrupt government or third party who might want to manipulate the system for his own selfish reasons.

3. What affects the value of cryptocurrencies

The factors that can affect the value of Cryptocurrency are

Introduction of new currency: when a new currency is lunched, if it becomes popular people invest in it and money flows into it from other currencies, this affects the value of Cryptocurrency

~increase in demand for crypto: increase in demand for crypto is one of the factors that affects the value
And lastly the cost of production.

4. Why can't everyone be a miner?

Everyone cannot be a miner because not everyone is skilled in that filled

To be a miner, you need to have a good capital, a good computer device for mining. There are special computers for miners
These computers are operated by miners who monitors transactions on the network.

1. Why can Cryptocurrency transactions be called more transparent?

Cryptocurrency transactions can be called or said to be more transparent because it runs on a blockchain network.
Blockchain is a specific type of data base, it differs from the normal/typical database from the way it keeps data (information).
Most blockchains are entirely known as open-source software. This means that anyone and everyone can view its code. This gives anyone who wants to review and verify the records and accuracy of transactions the ability to review cryptocurrencies like Bitcoin, Etherum, ETC for security. This also means that there is no real authority on who controls Bitcoin’s code or how it is edited. Because of this, anyone can suggest changes or upgrades to the system. If a majority of the network users agree that the new version of the code with the upgrade is sound and worthwhile then Bitcoin can be updated.
So because of the unlimited access to transactions everyone has to it, Cryptocurrency can be said to be more transparent.
Note: we are using bitcoin as example here because it's the world leading Cryptocurrency.

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

Cryptocurrency have really become popular in Nigeria but the government are trying to bann it because because it is not created or backed by any Central Bank and also the fraud people run with it on daily basis