[REPOST] Steemit Crypto Academy Season 5 Beginners Course - Task 5 : Bitcoin, Cryptocurrency, Public Chains
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Hello, dear steemit users on this platform. I have completed the 1st & 9th Homework task successfully. Today I am writing the post for the 5th Homework task lectured by Professor @stream4u that is on Bitcoin, Cryptocurrency, Public Chains.
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There are three different questions available for every Fixed Homework Task. For this 5th task, I have chosen the first part which is about Cryptocurrency. I have read the lecture carefully. Now I am writing the answers to the questions I have selected. I have also added the questions in bold letters below. So, Let's start.
QUESTION (1)
What Is Cryptocurrency and How You Would Like To See Cryptocurrency In The Future?
✪ What Is Cryptocurrency?
We understand by currency is a medium of exchange or means of payment. And what we often know as currency is in the form of paper money that is available in every country in the world today. In the past, our ancestor's used to trade by means of barter as a medium of exchange, a process whereby if I had sweet potatoes and wanted rice, I would exchange my sweet potatoes for people who had rice, that's how they exchanged goods and services, but throughout the evolution of the world, we now find ourselves in a medium of exchange involving paper money as our currency and now, in our modern world of technology, we now own or know of another medium of exchange known as cryptocurrency. That raises the question of what cryptocurrency is all about.
Cryptocurrencies are known as digital currencies or, unlike our centralized form of currency, it is actually a decentralized form of currency and serve the same purpose as our local currency in that it can be used for payments. It's not in physical form, it's not digital, we can't touch it like we can make paper money, but rather in an encoded digital form whose notes are stored on different computers around the world.
We can define cryptocurrency as a special set of codes that are stored on our computer or mobile that have a value according to what we configure and to be able to make payments that we send or receive easily with our mobile phone or computer. the case is possible. We can easily make transactions faster with cryptocurrencies and this is also done at low fees. We make transactions without the need for any processing like local banks do, transactions are carried out easily and we carry out these transactions without being dependent on any bank. Unlike fiat money, which has a fixed value cryptocurrency, each user can set the value of their cryptocurrency.
The first cryptocurrency created was in 2009 and that was Bitcoin by Satoshi Nakamoto, whose mental idea while creating this form of currency was to allow users to send and receive (transactions) in seconds without relying on anyone or institution. It is created to allow users to transact money independently with anyone at any time without going through any process or depending on someone without stress. This is to define our monetary system as we know it today.
Today we have thousands of cryptocurrency assets with the first cryptocurrency created, bitcoin leading them all, which is often a leading indicator in the market, and others are often referred to as altcoins.
Features Of Cryptocurrency
It is decentralized. This is in the sense that it is not controlled by any authority, be it financial institutions or the government
Well, it also eliminates the costs that exist in traditional financial systems like banking and actually offers a much lower cost per transaction.
Cryptocurrencies also offer more security and guarantee our privacy in the sense that most of our personal information is controlled by us and should not be made public.
It is available to anyone. This is because almost anyone can participate in cryptocurrency transactions without much pressure from anywhere in the world, as long as they have a device with an internet connection.
Another thing about Crypto is that it protects the identity of its users, you can easily make transactions to be validated without revealing your identity.
When I explored coinmarketcap, I got several top cryptocurrencies listed there. I am including a screenshot below:
Advantages of Cryptocurrency:
Low transaction fees
Cryptocurrency is a form of security for the unbanked in the sense that anyone from anywhere in the world can have access to transact easily and freely without the rigors of the banking system.
Offers fast and permanent transactions
It also offers the privacy that many users crave so they can easily make transactions without being responsible to anyone or offering any explanation as to what or why you made a large transfer.
Another advantage of cryptocurrencies is that we have exclusive control over our money, no one can freeze it for any reason.
Very easy to use which means user-friendly.
Disadvantages of Cryptocurrency:
The cryptocurrency market is very tough and sometimes these swings down, often leading to the liquidation of inexperienced cryptocurrency traders.
It requires high security as it is digital to avoid hacking, especially since we use third-party exchanges and wallets that work with Crypto.
The privacy that Cryptocurrencies offer can be put to great use by criminals who use them as a cover to carry out illegal and illicit transactions without stress.
✪ How You Would Like To See Cryptocurrency In The Future?
Based on the trajectory, the world is taking the overprinting of money by governments, which has undoubtedly devalued paper money, I see that cryptocurrencies are easily the leading transaction currency as a world reserve currency.
Today, with the level of money printing we see in many parts of the world known for its infinite supply of fiat money that is sure to devalue the currency to a large extent, you can easily see people entering cryptocurrencies as a hedge for their money. In the years to come, the paper money must have lost its value, which I think will eventually be lost.
Today we see countries like El Salvador who was already the first to take the bold step of accepting bitcoin as a currency of exchange in their country. In fact, this is an amazing innovation where I think cryptocurrencies are headed because I firmly believe that eventually all or most countries in the world will accept bitcoin (cryptocurrency) as a medium of exchange, El Salvador was the first of many to move. This move is a good thing in Crypto verse.
We also see institutions buying bitcoins, accumulating lots because they understand the value it holds and will stand up to paper money in the future. By looking at the company of one of the world's richest men, Tesla, earlier this year, he added bitcoin to his balance sheet and bought $1.5 billion. We see people like Michael Saylor earning huge amounts of bitcoin and a lot of institutions too. I mean smart money has started to understand where cryptocurrencies are going in the long term, so I think the future is bright for cryptocurrencies and anyone who stays positive for a long time and has this long-term plan will not be disappointed. It is true that it will be a bumpy journey with so many regulations coming from many countries. But I see that cryptocurrency will easily become the world currency and win the war of traditional financial cartels. Though some governments are against it but when they will find out that there is no way to stop cryptocurrencies, then they have no choice to reject them. I feel like cryptocurrency has come to liberate the poor and unbanked masses from society, of course, time will tell.
CONCLUSION
I have answered all questions for this homework task 5. I have learned about Cryptocurrencies and many pieces of information. I really want to thank Professor @stream4u for arranging this great homework task for beginners. Thanks to my all steem friends for reading this post.
Noted