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

Control over the currency as we all know that cryptocurrency is decentralized completely it means that not just one Financial institute control the currency and the market so it means that anyone who is is involved in cryptocurrency or has invested in cryptocurrency is the controller of cryptocurrency means no single authority controls cryptocurrency on the the old financial system which we called conventional financial system we can clearly see that the bank have the authority to control the currency flow in the market banks has the authority to to print new currency and they can do as much as they want without consulting with any of the currency holders which we all know that its centralise means there is a central authority which is Government and it comes under government that can Ban any e-currency anytime that can print new currency anytime but that can't happen in cryptocurrency

Conventional financial system works as the banks are order to print new notes which are mostly the central banks of our country and we all know that every country has their own currency we will take an example of euro for example banks are responsible for the printing of new currency in the conventional financial system if you talk about cryptocurrency it's completely different from the conventional financial system and that is that - are responsible for the generation of new cryptocurrency in the market we all know that through mining you can generate more coins if you talk about Bitcoin you have to to set up computers and do mining to generate new Bitcoins and people are doing that and that is how new Bitcoin are coming to the market so the creation of new currency is completely different from each other when it comes to cryptocurrency and conventional financial system

The biggest difference in the both system is that cryptocurrency is more faster than the conventional financial system because cryptocurrency can be buy or sell any time from anywhere to anyone there are no rules and regulations for that and it's completely under the control of the owner of the current he decides everything there is no middle man and you can do transaction in just about a few minutes few talk about conventional financial system it will take a lot of time for a transaction to happened suppose if you want to send someone are currency values banks and that can take many test

The availability factor is the most important in cryptocurrency if you want to do a transaction you can do it anytime now that is not the case with conventional financial system because there you will have to use banks for the transaction and we all know that it that banks are centralised it means Their employees working in the bank and we all know that two days in a week all the banks in the world are closed in some countries it can be one day but still if you have to do a transaction on Sunday you will have to wait for the holiday to end and then you can do the transaction now with cryptocurrency there are no holidays because everything is running on blockchain and its available 24/7 you can do any transaction anytime and one more thing is that banks sometimes limit you to some regions I have faced this problem many times when I want to send some money to other countries and banks told me that they don't have the facility to some regions now with cryptocurrency you can send it anywhere which is the most amazing thing about cryptocurrency and the biggest difference

Why is a decentralized system needed?

With decentralized system there will be many changes like we all know that decentralized system works on blockchain it means that everything is completely transparent and the biggest selling factor of this system is the speed which that operates all the transaction will happen very fast in comparison to the centralised system there will be no middle man in the transaction it will be completely p2p ND centralised system owner of the currency is the Comptroller of the currency if you are the owner of UK currency you can control the currency and you decide what to do you can keep all the the currency with you you and you don't need any bank to hold it for you

we need decentralized system because everything is under control of one single company or charity and they are choosing everything they are taking decisions for the rest of the user the currency which we use I will tell you about your home which I use the government Veltech decision how the note will look like and how many note should be printed and what should be the value of this not now we saw that in many countries that due e large amount of currency printing the currency has lost its value and that would never happened if it was not centralise

What affects the value of cryptocurrencies?

As we all know that Bitcoin was the start of cryptocurrencies and Bitcoin has a limit of 21 million total Bitcoins after that there will be no Bitcoins in the market there will be no new Bitcoins generation now what they does is is that slow down the supply of Bitcoin which creates demand in the market and when people know that there is a demand for a certain coin that try to hold it so the price can go up simple theory of demand and supply if there is more demand and low supply it means the coin will go to a higher value now this applies on all the cryptocurrencies if there is a high demand of a coin and people are not selling it then that coin value increase in value so that's affect the price of cryptocurrencies

the second biggest reason for the cryptocurrency value to go up and down is any news from anywhere a news from a company itself it can cause the price volatility and a news from news channel can also cause the price volatility and that's why there are many speculations on many coins and many fake news is on many coins which affects the coin directly will talk about Bitcoin recently Tesla one of the biggest car manufacturer company has announced that they will no longer be selling their cars true to Bitcoin that had announced that there will be accepting Bitcoin as a payment method to purchase their vehicles and because of that Bitcoin was increased in value now when the negative news came it will go down now if a positive news come it will go up

Why can't everyone be a miner?

we will talk about mining first because to understand why can't everyone can't do mining we should know what is mining basically so we will take example of Bitcoin to earn Bitcoin you need powerful computers to solve Complex mathematical equations and to verify the transactions I will tell you that easily to do that you need heavy computers and those computers should be on all the time means 24/7 and there should be connected to internet so that you can do the job and to set of those computers you must know the technical skills it required to set up two computers now we know what is mining you may have got some idea about why can't everyone do this process of mining cryptocurrency

ot everyone have enough technical skills to understand the computers and to setup a mining Rig as you call it because it requires many things that you should understand and we all know that many people don't have technical skills to understand the complex and hard things about setting up a mining machine

As Itold you that the system is very expensive you are not mining with the simple computer or laptop you must need heavy and very expensive machinery to execute the process of mining and as I said expensive so most of the people don't have that much expensive machines and when you go to buy those it will cost you a lot and because not many people have that much money they can't be one of the miners of cryptocurrency

we all know that Bitcoin has a limit of 21 million total Bitcoins and with Bitcoin being almost all of them are mind the difficulty levels are going very high it means that you will have to update your system time to time and with the difficulty level IT decreases the chances of you earning more reward and that's why many people don't used to do mining of cryptocurrency

Why can cryptocurrency transactions be called more transparent?

We can call it more transparent than the conventional financial system because in the convention financial system if you look at the transaction history we don't get to see anything no transaction everything is been kept secret from the the rest of the world now when it comes to blockchain we all know that blockchain is a transparent place and there can be no changes in the blockchain once something is recorded or written on blockchain it cant be replaced edited or removed and every user has its own public key and up to a certain level anyone can check the transaction of that user and know the Holdings

The transaction history that time and amount is stored in blocks in blockchain which can be viewed by anyone it's completely public as we all know that blockchain is a public ledger up to a certain amount anyone can check any history that time and amount is I said and the person who have send it or received so there is no way anyone can do any fraud in blockchain and because everything is completely transfer and it makes it more trustworthy and

-Explain how the development of cryptocurrency in your country?

in my country Italy the rules for cryptocurrency are a little bit strict since a few years now hear the development is going very high and government is making rules and regulations for cryptocurrency in Italy if you are investing in cryptocurrency you must have to disclose all your Holdings to the text office and you must have to to pay a tax on the amount of profit that you make from the Holdings of cryptocurrencies

in Italy cryptocurrencies are recognised as stocks and other things where you invest and make reward out of it there are very strict laws if you are busted and if you don't disclose your cryptocurrency holdings and the prophet that you make from cryptocurrency is you have to pay penalty by the tax department for not disclosing your Holdings in cryptocurrencies it can be up to 3% per year of the total holdings and it can increase with time

I think that's really good news because if our country is making rules and regulation for something it Simply means that they are accepting cryptocurrencies and that is a very good news for all the citizens of Italy

There is a very good amount of people that they know about cryptocurrency is in my country and soon there will be many more development in the rules and many more development in the acceptance of cryptocurrency in my country Italy

Conclusion

blockchain and cryptocurrency is still a very good new technology for the people to understand it there are many projects happening on these new technology and I think everyone should get more and more knowledge about blockchain and cryptocurrency and we should educate yourself enough to prepare yourself for the future we all know that the way cryptocurrencies are growing that time is not far when people will be only talking about cryptocurrencies and the conventional financial system will be converted to blockchain

blockchain gives you speed transparency and many other things and I think what you want in a transaction is speed and transparency and the the you want it on anytime and blocks and is providing that it simply means that this is the future