I am excited to participate in this edition of the weekly iTeach contest.
Discuss cryptocurrency and how it works, including a technology used in cryptocurrency
Cryptocurrencies are virtual currencies that use cryptography for security, hence making it very difficult to make a fake copy of them. Cryptocurrencies are decentralized in the sense that no central authority is in charge of it and they are based on a technology called Blockchain technology.
Governments or central authorities do not have power over cryptocurrencies. Cryptocurrencies are produced via a complex process called mining. Cryptocurrencies are also traded, exchanged and stored in exchanges.
As mentioned earlier, the technology used in cryptocurrency is Blockchain technology. As one can deduce from the name, blockchain consists of a group of blocks which are connected. Blockchain could also be referred to as an online ledger that keeps track of transactions made.
The blocks consist of transactions that have been confirmed separately by each of the network's members. New blocks made have to be confirmed by every node before moving further. This prevents to a very large extent, the falsification of transaction histories.
In what way do you mostly use cryptocurrency? Explain.
I use cryptocurrencies in several ways.
Sometimes, I exchange one cryptocurrency for another. There are time when I would need to do something using one cryptocurrency but what I have available is another cryptocurrency. All I would have to do is exchange the one I have for the one I need. This is where exchanges come in.
Also, I sell my cryptocurrencies in exchange for fiat currency. This is one the main ways I use cryptocurrencies. When I am in need of normal centralized fiat currency, I sell my cryptocurrencies in order to get it. On the other hand, I also give fiat money in exchange for cryptocurrencies.
In summary, I trade cryptocurrencies and it has given me quite the profit
What are the distinctive differences between cryptocurrency and traditional currencies? What's your choice between the two and why?
There are many differences, but some are listed below:
Cryptocurrency is decentralized in the sense that it is not in the control of government or any middle authority, meanwhile, traditional currencies are under the control of governments and central banks.
Cryptocurrency is a virtual currency while traditional currencies are physical
Everyone has access to cryptocurrency and it can be used for transactions anywhere in the world. The same cannot be said about traditional currencies.
Cryptocurrency runs on blockchain technology while traditional currencies do not.
I would chose traditional currency over cryptocurrency. The reason is because traditional currency is widely accepted. This is in contrast to cryptocurrency which hasn't really undergone massive adoption yet.
Another reason is that the price and values of some cryptocurrencies are very volatile and can make one lose a lot of funds very quickly. On the other hand, the price and value of traditional currency is relatively stable.
Share your advice with the audience on the adoption of cryptocurrency and a few things they should watch out for.
I believe that with time, there would be mass adoption of cryptocurrencies. Cryptocurrency provides a lot of benefits, hence the need for it to be widely adopted. I think that cryptocurrency is the future of money as it has broken many barriers faced by traditional money.
People should watch out for Blockchain technology. It has enormous potential. It's is indeed a technology for the future.
Conclusion
Both cryptocurrency and traditional currency have their advantages and setbacks. We should get to a point where both are being used equally.
I am inviting @Sirstan9, @dayographix and @ugochukwuprosper to participate in this contest.