Steemit crypto Academy Season 4 - Homework post for Task 5 - Bitcoin, Cryptocurrencies, public chain.
QUESTION 2.
What Is Bitcoin and what was the Aim Behind Bitcoin Invention? Is Cryptocurrency Good For A Business To accept As Payment? Why?
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What Is Bitcoin and what was the Aim Behind Bitcoin Invention?
Bitcoin is a digital cryptocurrency that is used as a means of payment. Bitcoin does not hold any physical form, it is the first coin introduces in the world of cryptocurrency. Bitcoin was invented in 2009 by Satoshi Nakamoto but the true identity about the founder of Bitcoin is till a mystery till today.
Bitcoin works in a Decentralized system and operates on peer-to-peer network which means you can transfer Bitcoin from one person to another without the need of a middleman or mediator which was the work of our traditional Bank. Low fees are incurred during transaction unlike the high fee the traditional bank charge when making transaction.
Every transaction that happen is being broadcasted publicly to the network and after 10 minutes or so the miners collect the various transaction into a group called BLOCK and are added permanently to the Blockchain
What is Bitcoin Mining?
Bitcoin Mining is a way through which Bitcoin are released into the circulation, it is also a way of how new coins are brought. Miners get rewarded with some Bitcoin well they deserve it because mining requires solving computational difficult puzzles to discover a new block that will be added to the block chain.
What was the aim behind Bitcoin invention?
Bitcoin was invented to give people liberty to send/transfer money with the use of Internet. There is no central control/authority overseeing their daily Transaction because Bitcoin operates in a Decentralized system. So the main reason Bitcoin was invented was to have digital payment system that works with the use of Internet and it does not depend on the government or other Financial institute before transaction is made.
Advantages.
- It is possible to send and receive Bitcoin anywhere in the world at any time.
- Low fees are incurred for transaction to take place.
- Users are in control of their coin and transaction.
- All information are transparent and available on the Blockchain to make future reference on past transaction.
Disadvantages
- Bitcoin price are not stable it can rise and fall at anytime.
- Bitcoin cannot be refunded after it has been lost.
- It lacks regulatory affairs/law over it which can lead to fraud and scam.
Is Cryptocurrency Good For A Business To accept As Payment? Why?
Yes, cryptocurrency is a good means of accepting payment in a business.
- With the use of cryptocurrency in a business the transaction fees are lower unlike the use of credit/debit card payment were fees are quite high.
- With the use of cryptocurrency in your business, there is a chance for your business to expand to allow international buyers to patronize you because more than 50 countries accept cryptocurrency. It will also eliminate going through the stress of converting a foreign currency to your local currency.
- With the use of cryptocurrency in your business, there is the elimination of intermediaries. It allows peer-to-peer transaction.
CONCLUSION
Bitcoin is the first coin to be introduced in the cryptocurrency world and it is the most valuable coin in the world, cryptocurrency have changed the world if business positively were you don't need intermediaries to make your transaction successful.