Steemit Crypto Academy Contest / S2W1 - How Cryptocurrency has Shaped the Financial Realm. What is Its Future? by @jasminemary
Hello my beautiful looking friend,
Today I welcome you to my post. I am so happy that Steemit Crypto Academy Contest Season2 Week1 has started after a short break from the previous season1 contest. Today in this post, I have discussed about an overview of cryptocurrency and lot of interesting things that will boast your brain. Let's gets started without wasting time.
An overview of cryptocurrency.
Cryptocurrency is no longer a new word. The word cryptocurrency started gaining its popularity in 2009 after Bitcoin was created. Sometimes people called it crypto or crypto-currency which still means digital assets.
Cryptocurrency is a digital form of payment system that doesn't depend on our local financial institutions to verify and approve transactions.
Cryptocurrency is a peer to peer (P2P) system of transaction that allow it holder in any part of the world to send and receive payment in less than 10minutes. Thank God for decentralized/centralized exchanges that has make it more easier and convenience for people to carryout their transactions using cryptocurrency.
Cryptocurrency is different from our local currencies that is carried around instead cryptocurrency is stored in an exchange wallet that can either be centralized or decentralized. Cryptocurrency are created using a techniques called cryptographic that allows people all over the world to buy, sell or trade them for fiat currency (local currency).
The name cryptocurrency got its name fully because it make uses of encryption in verifying every transactions. Bitcoin which was created in 2009 is the first ever and most popular cryptocurrency that we have today.
However, aside Bitcoin there are other cryptocurrencies that are now gaining momentum in the world and Steem is among them. Before we start looking at types of cryptocurrencies I will like us to know how cryptocurrency works.
How cryptocurrency works
Distributed public ledger known as blockchain which is a record of all the transactions that happens in a blockchain is where cryptocurrencies is run on.
Cryptocurrency is basically created through a process known as mining. Mining involves the use of computer and electrical power in solving complicated problem that are highly mathematical for human-being to solve. After solving this problem, a units of cryptocurrency will then become available for purchase selling and trading.
Owning a cryptocurrency simple means you own a digital assets that can be converted for cash or use in paying for goods and services. But to my little knowledge of understanding I think that owning a cryptocurrency means you don't just own a digital asset but you have the power (key) of transferring your digital assets from one person to another without the involment of third party. Wahoo this so nice.
Example of Cryptocurrency
Today, we have so many numerous cryptocurrencies. Even with the thousands of cryptocurrencies that we have today there are certain cryptocurrencies that stands out to be the best among them which are;
Bitcoin: Bitcoin which is populary known as BTC is the first cryptocurrency that was founded in 2009, and today it is regarded as the most known cryptocurrency that is highly traded in the crypto market.
Ethereum: Ethereum which is populary known as Ether (ETH) is another popular cryptocurrency that is next to Bitcoin in terms of price value and it was founded in 2015.
Litecoin: this is another good cryptocurrency that is use for fast payments like sending of money.
Steem: Steem is the first ever social media blockchain cryptocurrency that was founded in 2017. It's use to reward users and it's also traded as other cryptocurrencies are been traded.
Ripple: Ripple is also a good cryptocurrency that is populary known as XRP and it was created as a distributed system in 2012. However, Ripple has face so many court cases and it still stand among the best cryptocurrency.
There are many other cryptocurrencies such as Tron (TRX), Dogecoin, BNB etc that are available for trading.
Comparison between cryptocurrency and conventional currencies.
As we all know, cryptocurrency and conventional currencies are somehow differnent even with the similarities that they both share. The both are use digitally but cryptocurrency is more use digitally and it's not use offline.
Cryptocurrency is known as a digital currency, whereas conventional currencies is also use digitally which is held by institutions in an electronic form.(i.e one can send money online to another person).
Firstly, in order for we to understand the comparison between cryptocurrency and conventional currencies I will like us to study the image below.
Looking at the image above, it has already drawout the comparison that we are looking for. However, for a better understanding I have make it more understandable in a tabular form below.
| S/N | Cryptocurrency | Conventional currencies |
|---|---|---|
| 1 | Cryptocurrency are run in a decentralized system with no third parties involment | Conventional currencies have a centralized authority (i.e central banks) that managed how it should be use |
| 2 | the purpose of cryptocurrencies us to remove the use of intermediaries and improve cost efficient that is associated with sending of money and cryptocurrencies isn't back by conventional currencies | Conventional currencies is aim to help citizens carryout transactions directly. |
| 3 | cryptocurrencies are mostly exist in a digital form | Conventional currencies exist both digital and offline. |
| 4 | The aim of cryptocurrencies is to solve the challenges that is faced with conventional currencies across foreign exchange transaction and international payment | conventional currencies are only use mostly in a certain country. |
Explain the distinctive innovations of cryptocurrency and its downsides.
The innovation of cryptocurrency has brought a lot of changes In the world through the use of blockchain technology which is very trustless in a way that things are now becoming digitalised.
Some cryptocurrency like Ethereum enables thousands of smart contracts to perform financial transactions without the use of human effort. When it comes to Bitcoin, is a highly recommend cryptocurrency that is transparent in such a way that even FBI, IRS and many other agencies are now using its innovation to tracks activities of criminal.
With the innovation of cryptocurrency a lot of people are comfortably living well because their are now a crypto investors and traders aside that the innovation of cryptocurrency has created a lot of jobs for millions of people all over the world.
With the innovation of cryptocurrency we now have different exchanges that are offering the same services that financial institutions offers. However, there are some downsides when it comes to the innovation of cryptocurrency.
Innovations of cryptocurrency downsides.
Even with how powerful cryptocurrency Innovation is there are still some downsides that is facing the innovation which are details out below.
Cryptocurrency is highly volatile of which some cryptos like Luna coin had experienced make millions of Investors to lost their funds.
Cryptocurrency values is based on the willioness of market force for it to either rise or fall.
Cryptocurrency since it's mostly use online it can attract theifs easily.
There is no regulations in cryptocurrency and it's the reasons why is highly regard as a currency that is use for fraudulent activity.
How do you think major problems with cryptocurrency can be handled? Let this be a response to the downsides highlighted earlier.
Based on the downsides of cryptocurrency that I have highlighted out I am sure that there can be handles in the following ways;
As for the downsides of volatile, I think there should be a limit at which cryptocurrency can fall so as to keep the value of Investors fund no matter how small it's. The fall of Luna token was so bad and unbearable to everyone that invested in the coin.
There was certain limit as to which Luna coin would have stopped falling it would have been better for Investors and the cryptocurrency because people will not tend to lose money the way their lost during the Luna crisis.
A lot of people even the government are afraid and fighting against cryptocurrency because it has no backing authority. To this, I think there should be a way in which cryptocurrency are regulated as to bring more trust into cryptocurrency.
Due to lack of regulations a lot of cryptocurrency projects are coming out to defraud people of their hard earn money simply because their is no rules and regulations that is guiding the crypto industry. But if there is rule and regulations within the crypto industry I am sure there would be no fake crypto projects.
Do you believe in the future of cryptocurrency? State your reasons. Any Recommendations?
I strongly believe in the future of cryptocurrency for so many reasons which are stated below.
Looking at the world today, things are now going digitally and globally. Today there is what is called NFTs in the crypto industry. NFTs stands for Non-fungible tokens which is a digital form of assets and there is a marketplace known as OpenSea where people now own digital assets like land etc.
With this alone it has shown that cryptocurrency is the future of money because our government are now buying the ideas of cryptocurrencies. We can now see how some countries are now creating their own digital assets (stablecoin) using a blockchain technology which is a enough to proof that cryptocurrency is the future.
Financial institutions are now adopting the use of blockchain technology into their system which is also proof that cryptocurrency is the future. Cryptocurrency is highly one of the most tradable assets in the world today and thousands of people are now accepting as payment for goods and services that their render out.
Conclusion:
Cryptocurrency is one of the fastest means of transferring money and it is more secure trustworthy than conventional money. Today in the world with the help of cryptocurrency people now transacting their business happily without the use of third-party.
Thank you for reading this post.
I am inviting @nancygbemi, @simonnwigwe and @rad-austine to also join this contest.
Cryptocurrency is really a life saver and I believe it will be the major means of exchange in nearest future. God bless Satoshi Nakamoto for his invention.
Thank you for reading my post I appreciate your efforts. Indeed Satoshi is a great inventor may God continue to bless him because he has change a lot of lifes.
You have really taken your time to explain the overview of cryptocurrency and also the comparison, I love how you explained it.
Amazing presentation friend thanks for sharing your article with us, Best of luck steem on💃
Thanks for your comment.
Интересный материал!
Всё разложено красиво и по полочкам!
Хорошие мысли у вас!
You have really done well to have answered all questions in a good manner. Greetings!
Very impressive, i believe blockchain will reform the world bit by bit
Cryptocurrency is a subject where we do not have to rely on any central authority and here one user can transact directly from one user to another like his own freedom. That is, the individual has his own freedom. Excellently presented today's post in front of us.
Actually yes. With cryptocurrency everyone has the right to control his/her fund the way he/she likes.
Thank you so much for reading through my post.
You have explained every topic in a detailed manner.
Yes, You are right. That's everyone should do proper research before investing in any project.
Thank you for reading through my post. I appreciate
Yeah, cryptocurrencies is playing a big role in digitization of the finance system. I believe its role will increase as time goes on. A well written content. Thanks for sharing.
Thank you dear for reading through my post I really appreciate.
This a well detailed information dear you really wrote awesomely.
So many traders have lost their their funds, making them growing poorer while some traders have used the volatile nature of crypto currencies to become richer than before. So therefore the volatile is also a disadvantage as well as it is an advantage.
Thanks for sharing such mind blowing entry
Wishing you success.