Good day everyone, I hope you all are doing really well. So as I promised that I will bring the Crypto series to you all so I am here with my second post.

In my first post, I told you all about the What are NFT Games and How you can earn from them? If you guys haven't seen it then go and check it out What are NFT Games.

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So today I have brought the Part II of the Series of Crypto. And today you all are going to Learn About Crypto.

The things which we are going to discuss today are:

• What is the fundamental difference between Cryptocurrency and the conventional financial system?
• Why is a decentralized system needed?
• What affects the value of cryptocurrencies?
• Why can't everyone be a miner?

I have decided to keep this lecture in 2 parts, as cryptocurrency is a vast topic and one can talk about it for months if he/she has knowledge about it. And According to my knowledge, I think it will take 2 posts to complete this lecture.

As if I try to write all of the material on a single topic the probability is that nobody is going to read it.

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So let us Begin

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What is the fundamental difference between Cryptocurrency and the conventional financial system?

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To begin with, the fundamental difference between Cryptocurrency and the traditional financial system is that Cryptocurrency is a decentralized system, meaning that no one has the authority to authorize it, whereas the financial system is a centralized system, meaning that it is controlled by a central authority.

Cryptocurrency is a self-contained system that does not require any intermediaries to act as a third party, whereas in the traditional financial system, a third party is always required, such as banks and governments, to control money input and output, among other things.

Another important distinction between Cryptocurrency and traditional finance is that Cryptocurrency's money is purely virtual, but traditional finance's currency is real.

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Why is a decentralized system needed?

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So, why do we need a decentralized system when we already have a centralized system, is a critical question. However, as we can see from more studies, people do not like being sanctioned by others; instead, they want freedom and transparency in what they do.

As a result, a decentralized system offers them both. Unlike centralized currency, a decentralized system gives us a lot of financial freedom and allows us control over our own money.

The decentralized system is critical, as we discussed in one of our previous lectures about the differences between centralized social media like Facebook and Instagram and decentralized social media such as HIVE.

We don't have the freedom on centralized social media; we can be blocked or banned for days or weeks, and they can even delete our accounts, which can cost us years of hard work, but on decentralized social media, nobody can delete our accounts, and we can also earn money, unlike on centralized social media. We also have the freedom to talk here, unlike on centralized social media.

The key benefit of the decentralized system is that people's labor and enterprises will be more efficient as a result. Transactions will be quicker, and everything will be more transparent.

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What affects the value of cryptocurrencies?

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The value of cryptocurrencies can be affected by a variety of factors. On the other side, we can observe that the cryptocurrency market is so unpredictable that no one can predict when it will rise or fall. The value of Cryptocurrencies is always determined by market interest; if the purchase offer is greater than the interest in transactions, the cryptocurrency will increase in value; if the opposite occurs, the cryptocurrency will decrease in value; nevertheless, it also depends. When more people invest in a digital currency, the law of market interest increases its value, but nothing is guaranteed.

The value of the cryptocurrency will rise if demand for the asset rises while supply remains unchanged, and vice versa.

Influential people are another factor that influences the value of cryptocurrencies. As everyone knows, Bitcoin started at $20,000 and then skyrocketed to $70,000 after Elon Musk tweeted about it. This was also due to Elon Musk's tweet, in which he stated that his firm would no longer sell Tesla using bitcoin. The market then plummets. As a result, influence has a significant impact on the cryptocurrency market.

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Why can't everyone be a miner?

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Being a miner necessitates a wide range of skills, including a complete understanding of the mining structure, proof of burns, proof of stake, proof of work, and many more. As a result, not everyone can become a miner.

Mining necessitates a high level of technical understanding since one must finish algorithms, overcome blocks, and solve problems, and most people who go mining end up losing money. Mining necessitates a large budget, advanced expertise, patience, and a cold environment, as the system is frequently overheated, and the most crucial factor is electricity. According to the information, I was reading, bitcoin mining consumes enough energy to light up the entire country of Switzerland.

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Conclusion

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Here we saw the difference between the cryptocurrency and the conventional financial system, as cryptocurrency is based on a Decentralized system while the conventional financial system is working on a centralized system.

The Decentralized system is much more secure and transparent according to the needs of today's world. We also saw how important it is to be decentralized social media.

And with this I would like to end this blog or lecture here, I hope it brought the knowledge to whomever it may concern.

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@maazmoid

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