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

Today I'm going to make my Steemit Crypto Academy Contest that talking about How Cryptocurrency has Shaped the Financial Realm. What is Its Future?. Actually I have little knowledge about this, but on this occasion I will try to discuss it to improve my writing skills.

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Overview of Cryptocurrency

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In the digital era as we feel today, cryptocurrency is one of the words that is very popular and is widely discussed by people around the world. Cryptocurrency is a digital currency that is used and utilized by many people in carrying out many activities and transactions in the financial world. Lots of investors and traders who have cryptocurrencies to expand their assets to be more. Until now, the development of cryptocurrency is getting bigger and wider where many companies continue to involve cryptocurrency in various sectors of daily life such as financial services and gaming platforms, music, advertising and others.

The presence of cryptocurrency which has a decentralized system has brought many benefits to many people in this world to be able to carry out financial transactions quickly, safely, accurately, effectively and efficiently. This decentralized system is very beneficial where the system does not involve third parties in the transaction process. Every investor and trader can make multiple transactions using only the exchange platform and their keys. This certainly increases security so that every investor and trader can trade cryptocurrencies to develop their assets at any time.

The use of blockchain is an important factor that makes the world of cryptocurrencies have a very good and capable operational system. Smart contracts that run on the system are very useful in processing every transaction that occurs every time. Cryptography serves to solve complex mathematical algorithms and is processed to form a block. This proves the blockchain has a high level of security where every transaction cannot be deleted, repeated, manipulated and hacked.

Cryptocurrencies have brought many advantages and positive impacts to everyone in the world today. In my opinion, understanding and involvement about cryptocurrencies can continue to be explored and expanded to make you more informed and keep up to date with the times. There are many cryptocurrencies that can be invested and traded on various exchange platforms such as Bitcoin, Ethereum, Monero, Steem and others. Every investor and trader can increase assets not only with real assets but with digital assets that have great potential in the future.

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Comparison between Cryptocurrency and Conventional Currencies

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Cryptocurrencies and conventional currencies have several differences that can be reviewed, especially in their operational systems. The development of the times and the digital world makes the presence of cryptocurrencies increasingly needed and benefits many people in the world, but conventional currencies cannot be forgotten about their importance and influence in the past where many people depended heavily on carrying out transactions in the world of domestic finance. The differences are as follows :

Cryptocurrency	Conventional Currencies
Cryptocurrency has a decentralized system where there is no third party or central authority in managing finances	Conventional Currencies have a centralized system where a central authority or central bank regulates and manages finances
Cryptocurrency can be used by investors and traders to transact or cross-border payments	Conventional Currencies can only be used by investors and traders who transacts or payments within the country
Cryptocurrencies have fast transaction processes and low fees because they do not involve third parties	Conventional Currencies have a longer transaction process and high fees because they involve third parties
Cryptocurrencies use a blockchain system in the process of recording transactions that occur	Conventional Currencies use a computer or original ledger in the process of recording transactions that occur
Cryptocurrencies have high volatility which is suitable for investment	Conventional Currencies have stable prices which is suitable for savings

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The Distinctive Innovations of Cryptocurrency and its Downsides

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Distinctive Innovations of Cryptocurrency

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• Decentralized System
  The presence of cryptocurrencies with a decentralized system allows investors and traders to carry out many transactions quickly and at low costs because they do not require a third party to manage assets.

• Blockchain Technology
  The presence of blockchain-based cryptocurrencies creates a higher level of security because recorded transactions will be processed and form a block that cannot be manipulated and hacked.

• Investments and Payments
  The presence of cryptocurrencies has helped many investors and traders make activities and transactions in the financial world easier because users can make transactions using the exchange platform and their keys at any time.

• Creating Jobs
  The presence of cryptocurrency has a positive impact on many people around the world where everyone can be involved in the world of cryptocurrency to get a job or do activities that can make money.

Downsides of Cryptocurrency

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• Price Volatility
  The presence of cryptocurrencies that have high volatility in the market sometimes makes investors and traders experience losses due to unstable price movements every time.

• Loss of Assets
  The presence of cryptocurrencies that run on a digital system sometimes makes investors and traders lose their assets if they make transactions to the wrong address because assets cannot be returned.

• Possible Fraud
  The presence of cryptocurrencies that do not have special regulations and protection from the central authority makes it possible for fraud to occur in conducting transactions.

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How Major Problems with Cryptocurrency can be Handled?

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In my opinion, the main problem that needs attention is where investors and traders can lose their assets in a fast time due to incorrect sending of addresses when making transactions. The focus here is that senders who make transactions to the wrong address can get an opportunity or sufficient time limit to return the transaction or withdraw the assets sent in a fast time. In this case, it may be possible to set the time a few minutes before the transaction is verified and this may prevent the sender from losing their assets in a matter of seconds. I hope that this problem may be overcome with the development of increasingly advanced technology and the ability of the developers of each company.

Another problem that may be overcome is the possibility that irresponsible parties often seek profit by deceiving investors and traders. The absence of regulations and special protection from a central authority reduces the security that companies or individuals can anonymously deceive many people in the cryptocurrency world. The presence of a central authority capable of making good regulations might be a solution to increase the trust of many people and prevent harmful fraud.

And for the problem of price volatility, this is a problem that I think can't be avoided because this is what makes cryptocurrencies interesting to follow where every investor and trader must consider all possibilities and manage assets properly to gain profits and avoid losses.

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Future of Cryptocurrency and Recommendations?

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I believe in the future of cryptocurrencies. In my opinion, the significant development of cryptocurrencies until now shows that almost everyone around the world has been in the cryptocurrency world for various reasons and needs. The involvement of cryptocurrencies in everyday life is very close where everyone carries out many activities and financial services such as buying, selling, investing, trading, paying and others. The development of the digital world and technology that is increasingly advanced supports all things related to cryptocurrencies in the future.

Until now, various companies have taken part in the cryptocurrency industry from various sectors to improve the quality of life and meet the needs of many people in this world. As we know, lots of companies with different goals and functions are continuously increasing the level of user adoption in the cryptocurrency world from coins, exchange platforms, gaming platforms, advertising platforms, writing platforms, sports platforms, NFT, metaverse and others. The use of each application or platform by users around the world is increasing over time so this proves that cryptocurrency has a great future.

My recommendation for everyone who will be in the cryptocurrency world must have the concept, plan, management, research, consideration and other positive things to make a successful investment or trading. I hope that the world of cryptocurrency continues to grow and is able to make it easier for everyone to meet the needs of various aspects of life.