BITCOIN, CRYPTOCURRENCIES, PUBLIC CHAIN - STEEMIT CRYPTO ACADEMY SEASON 5 - HOMEWORK POST FOR TASK 5 BY @niglys8

Bitcoin, cryptocurrencies, public chain - Steemit Crypto Academy Season 5 - Homework Post For Task 5 By @niglys8

INTRODUCTION

Greetings! Members of the Steemit Crypto Academy Community. I am here again to submit my homework post for the Task 5 introductory course anchored by our amiable steemit Crypto Academy professor @stream4u. I will be answering the second (2nd) question for Task 5 on the topic BITCOIN, CRYPTOCURRENCIES, PUBLIC CHAIN.

(2) What Is Bitcoin and what was the Aim Behind Bitcoin Invention? Is Cryptocurrency Good For A Business To accept As Payment? Why?

What is bitcoin?

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Bitcoin is a virtual money that cannot be physically seen but allows secured pair to pair transactions over the internet. It can also be seen as the new money of the future. Bitcoin is the first widely adopted cryptocurrency that allows people all over the world to directly send money to each other.

Bitcoin is likened to the traditional banks but with major differences, Bitcoin has proven to be the best because of it's decentralized nature.

• Bitcoin transactions are tracked on the blockchain same way with a bank's ledger meaning that a record of every Bitcoin transaction is made.
• The Bitcoin blockchain unlike the bank's ledger is distributed over the network. No third party has access or control over it. It is open for anyone to become part of the network.
• Unlike FIAT (Naira, USD, Euro etc) which can be reprinted when scarce, Bitcoin cannot be more than 21 million in number.
  

How Bitcoin was created?

The Bitcoin cryptocurrency was created in 2008 by a man called Satoshi Nakamoto.
Satoshi Nakamoto could be a person or a team that brought the technology in 2008. The history of the originator is not well known and has remained unknown over these times.
After it's implementation in 2009 it was released as an open source software in a decentralized system.
A total number of 21 million Bitcoin was created and for a reward to a process known as "mining"
Mining is simply a record for keeping services done by the use of computer processing power.
Since the creation of Bitcoin it has been heavily criticized as an illegal asset by world powers because of the amount of electricity used, fluctuation in price (volatility) etc
Bitcoin transactions are made for pair to pair system of networks and it's transactions are verified by nodes through a cryptography which are recorded in ledgers called the blockchain.

How Bitcoin works?

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The following is the summary of how the Bitcoin cryptocurrency works;

• It is decentralized in it's operation. It's operation are performed by mining rigs(specialized computers)
• This mining rigs are what performs the mathematical equations which are required for recording and verifying of new transactions. Large amount of electricity is required for the process of mining. As at October, 2019, more computing power of about 12 trillion times is required to mine 1 Bitcoin than it were in the days of Nakamoto.
• Miners who mine the Bitcoin collectively ensure that transactions are confirmed. When any transaction is made fees are paid for transaction. This fees can be normal or priority fees.
  

Functions of Bitcoin

• Bitcoin is a native currency of the internet. In a traditional banking system, transfer of money passes through a third party (banks) but Bitcoin allows a direct access to the receiver without any middle man. This middle man bridging has created a wide range of opportunities to move money around the internet in a cheap and fast manner.

• Bitcoin as a legal tender.
  Bitcoin has been accepted as a medium of payment by businesses in exchange of goods and services. One can comfortably buy a yatch, house, pay for trips abroad. This is infact the new oil well. You can hold to get value, trade to get more value and even donate to charity organizations.

• Bitcoin can serve as an investment for future purposes.

• Bitcoin can serve as transfer of value around the globe.

• It can also be a means of exploring an emerging technologies.

what was the Aim Behind Bitcoin Invention?

The main aim behind the invention of Bitcoin is to create transparency between financial transactions, and also to create sustainability among the world economic finance inorder to solve financial crises in reliance on traditional banks as middlemen. Now instead of the government authorities and the banks, the blockchain technology takes charge. Bitcoin invention aims to remove the barrier between the rich and the poor thereby creating an opportunity for the poor to get rich and rich to get richer.
Bitcoin as the first cryptocurrency in the blockchain has created opportunity for other cryptocurrencies to be generated, however bitcoin is still the Number 1 on the cryptocurrency list. Today there are over 5000 cryptocurrencies in the blockhain space.

Is Cryptocurrency Good For A Business To accept As Payment? Why?

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Personally, I will say a very big YES that cryptocurrency can be used as a good means of accepting payments during business transactions. This is because It has a direct pair to pair transaction without intermediaries, and it is very fast and also serves as a secured form payment without fraud.

Another reason why cryptocurrency is good as a form of payment for business transactions is the low transaction fees it has. For example, If you happen to have different employees from different parts of the globe, payment with cryptocurrency will be more convenient as you won't have to convert FIAT into different international currencies to pay employees. Cryptocurrency payment across borders is so free and easy compared to the burden of changing currencies in the traditional banking system.

Also, Since 1989, Microstrategy Michael Saylor publicly endorsed the Bitcoin cryptocurrency as a form of payment.
Some countries such as Australia, Japan, El Salvador have accepted Bitcoin as a legal tender and also New Zealand country that became the first country to legalize wages in cryptocurrencies. Entrepreneurs and businesses are beginning to accept cryptocurrencies as a form of payment every day more entrepreneurs and businesses are starting accept cryptocurrencies as a payment method because of it's fast, reliable and secured services.
With this I believe that cryptocurrency is good for a business to accept as payment method.

CONCLUSION

Bitcoin and other cryptocurrencies is gradually becoming a dominant financial system. There is currently a world financial melt down, inflation financial crises in which Bitcoin and blockchain technology is programmed to fix this barrier. I am glad I have gotten an indebt knowledge about the Bitcoin cryptocurrency.

Thank you for reading through!