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

Introduction

Before cryptocurrencies were officially accepted, the world's financial department had to deal with loads of problems and downsides such as money laundering, forging of bank notes, and statements, stressful tracking of transactions using loads of limited data, people had to deal with carrying huge sums of money for the bank to be saved, inflation , insecurities, the list can go on and on and on.

But, with the introduction of Cryptocurrencies things took a turn for the better as we see a great reduction in all the fore mentioned problems, civilization have gotten new businesses, new forms of payment has been made for employees, I mean people could hold very huge sums of money just in their phones and pass like they don't have a dime on them.

Setting that aside I am very pleased to be participating in yet another season of the steemit challenge. This season 2 looks promising to me, as I have been given a chance to talk about what I truly love; cryptocurrency this phenomenon has changed my life so much that I'm a living testimony of it.
So I'll be following the guidelines as proposed by the SteemitCryptoAcademy for this challenge post.

Users are expected to briefly give an overview of cryptocurrency.

As expected, cryptocurrency is a digital form of money used for purchasing items, services and others. It is more secured than the traditional currency and is decentralized, meaning anyone can own a cryptocurrency this makes it hard for a single group of people to control it and hence it can not be used to influence the community.
It is used worldwide and it is built on a system known as a blockchain, where junks of information are encrypted in each block of the blockchain. It is a very transparent system where everyone is allowed to know the transactions going on in the blockchain making it safe and also traceable.

Draw a comparison between cryptocurrency and conventional currencies.

These are the currencies known as FIAT currencies or physical forms of money which are government legal tenders. They are printed and distributed to the people for the running of the government, that is purchasing goods and services paying employees, import and export. It's value is affected by the availability in the society.
It is usually used to identify a country's economic state of development forexample, the United States of America has the Dollar ($) as it's legal tender and it is used worldwide and so it's value is very high.

These are digital forms of money which are nous
created based on a ledger known as a blockchain which is a decentralized system. It is made up of encrypted information.
The currency is used worldwide and can be owned by anyone and can be used to purchase goods and services.
Unlike conventional currencies, cryptocurrencies are not manipulated by the government, they are free from forging and laundering by scammers, because each block is unique and trying to forge one will mean forging all the other blocks in the system which is impossible.
All information of the cryptocurrency are stored in millions of computers all over the world, cryptocurrency can not be inflated making it a solution to the problems caused by conventional currencies.
It is traceable as compared to conventional currencies. Also it is portable as compared to conventional currency, it can be used anywhere in the world meaning it is not affected by conversion rates.

Explain the distinctive innovations of cryptocurrency and its downsides.

The innovative things of the cryptocurrency are very numerous with some listed below.

Since cryptocurrency come with a blockchain, constituting of a network of encrypted blocks of information, in which one block is unique from one one another, this makes it very difficult to hack because trying to hack one block will demand you to hack all other blocks in the blockchain.

This is another inovative aspect of Cryptocurrencies, here it shows that the blockchain of a cryptocurrency is very transparent meaning every transaction is seen by the whole world.

Cryptocurrencies are decentralized meaning they are not controlled by the government, this means it doesn't fall victim to inflation, crisis, taxes by investors.

This is what gives the value of Cryptocurrencies, the creators of these currencies, made them in limited supply forexample; there are only 21 million Bitcoins left and once it has been completely mined the price will be very high in the market.

Imagine having a million dollars in conventional currency and you are no where near a bank, it will mean you have to carry that load of money around, which will expose you to thrives, the load will weigh you down.
But with cryptocurrencies, it suffices to just have a crypto wallet and you can hold 1 million dollars in your pocket, pass through the airport without unnecessarily being questioned.

On the other hand, the downsides of the cryptocurrency is just the matter of the security turning back on the users, in this case when you lose your wallet password, you lose your money.
Also when doing transactions, it is crucial to make sure you don't miss any figure it letter while writing the address of the wallet.

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

Well I can't say the problems can be solved by the system the only way to go about solving it depends on the users, here they have to be very careful with their password and addresses when doing transactions.

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

Cryptocurrency is here to stay and I don't see any financial future without cryptocurrency, so far it has been accepted by most business center as a means of payment, it has also been accepted by many countries as an added legal tender, it has given jobs and lots of money to a lot of people all over the world I for one as a testimony, though not much but it's promising, as a student the little I get from steem now supports my education in one way or another. I would recommend Steem, as an investment plan for people willing to invest in cryptocurrency, generally I would recommend investors to invest in the starting cryptocurrency projects this increases their chances and gives them more money when the currency hits the market.

Conclusion

That is all I can say about cryptocurrencies for now, I hope there is enough information there to help you all more. I wish every cryptocurrency enthusiasts the best.

Thanks for reading 🤗🤗

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