[Cryptocurrency] - Steemit Crypto Academy Season 4 - Homework Post for Task 5

in hive-108451 •  4 months ago 

Hello, dear steemians. I am very glad to participate in this homework task 5 which is about Cryptocurrency by professor @stream4u . Let's start.

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QUESTION


What Is Cryptocurrency and How You Would Like To See Cryptocurrency In The Future?

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A digital currency that is designed for use over the internet is called Cryptocurrency. Cryptocurrency exists only in digital platforms, there is no physical coin or bill associated with cryptocurrency. We can use cryptocurrencies for many online payments if they accept crypto payment systems. We can also hold an amount of cryptocurrency as an investment. If it increases, you will get profit from your hold amount. This is the plus point of cryptocurrency.

Cryptocurrency doesn’t depend on central banks or any third parties because of verifying transactions. Instead of banks or other parties, it uses cryptography to confirm transactions on the blockchain. And it enables direct peer-to-peer payments for a very low fee.

We can purchase cryptocurrencies with a digital wallet where we can also keep our purchased amount. As a digital wallet, we can create an account on an exchange platform such as Coinbase, Bittrex, Binance, Poloniex, etc. There we can buy real money with cryptocurrencies. Or, we can buy cryptocurrencies with real money. We can also earn cryptocurrency through mining.

The value of a cryptocurrency is not stable. This value can rise and fall irregularly even in a short time. At present, there are more than five to six thousand different cryptocurrencies in the whole world. Each of them has a different value. The most popular cryptocurrencies are Bitcoin, Ethereum, Tether, Steem, Tron, etc. Here I am adding a screenshot that is cryptocurrencies ranking from Coinmarketcap

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Decentralization: We know that cryptocurrency is decentralized. Every user of the decentralized platform has the ability to make any decisions in the system by own. Every data is stored on the blocks so that it can't be changed. So, it is highly secured. Every user of a decentralized system has full freedom.

Transaction: There is no middleman issue in the transaction of cryptocurrencies like banks or brokers. It enables direct peer-to-peer payments for a very low fee. We need no confirmations as like banks. So, transactions can occur instantly.

Time: There is no time-consuming transaction process like banks. You just need a Private Active key, then you can transact any amount at any time from anywhere you want. It will take less than a minute. I think this is a great feature of cryptocurrency.

Trade: Crypto trading is more easier than a normal trade. If you are a trader, you should know about crypto trading. If you are using normal banking methods you would take long processes. But, in cryptocurrency, you can make certain international transfers at moment. There are many easier & popular trading platforms with cryptocurrency like Bittrex, Binance, Poloniex, etc.

Security: Cryptocurrency is very secured because it uses cryptography technology. Nobody can get access to anyone's wallet without active keys. There is a saying- keep your keys secure, your assets will be secured. It is the best advantage of cryptocurrency.

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Volatility: Cryptocurrencies are highly volatile than fiat currencies. There is a big risk for people who do not know the fundamental and technical analysis of a coin. So, be careful before stocking a crypto coin. Its price is not stable, it can change dramatically in a moment.

Limitations: Cryptocurrencies are not accepted in all countries. Many countries have banned cryptocurrency exchanges. At present, most of the big companies do not accept cryptocurrencies as payment. Though day by day cryptocurrency is gaining popularity over the world.

Keys Security: Every user should store their Private or Public Key in a secure place. If it is lost, he/she can not get access to their assets. Then the coins of that account will be useless. There is another chance to be stolen of keys. So, it could be a high risk.

Scam: There are thousands of cryptocurrencies available now in this present world. Also, a huge amount of cryptocurrencies are appearing every day in an uncontrolled manner. All of them are not believable. There is an example: $2B crypto scam: Turkish exchange Thodex goes silent, sparks user outcry Source

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At present, there is a saying that Cryptocurrency is the future. I wish, cryptocurrency will be accepted all over the world one day. I want to describe my expectations in my way. Let's start expressing.

  • We can't use cryptocurrency in purchasing our daily needs. We can only use these by exchanging in traditional currencies. Think about it, if we can buy any food or grocery items with our crypto savings from anywhere we want! I wish that we can use cryptocurrency to purchase anything we desire.

  • At this moment, we have to stay at home for the reason of the covid-19 pandemic. For that, we are having trouble purchasing any products like food or medicines with cash. If we can purchase them with crypto coins from nearby shops, it could be more easier to get rid of this trouble.

  • As we know that cryptocurrency is not supported in all countries because there is no tax is collected from the savings of crypto assets. If there are any options added by which tax could be collected from crypto assets, then it may be legalized in all the countries. And then everybody could use the cryptocurrencies without any risks or legalization issues.

  • There is a big issue that if one has lost his private or public keys then his assets will be gone too. If there is any process to get back the keys again, it will be a great invention for crypto users.

  • There is another big issue that if one has transacted any amount of crypto coins to a wrong address, he/she could not get any recovery system to get back their coins. This is very annoying. There should be a recovery process to get back the coins.

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Conclusion


I have answered the questions with my thinking. I want to thank professor @stream4u for arranging this informative homework task on Cryptocurrency. I have learned a lot from the lecture given. Thanks to all my steemian friends.

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