Crypto Academy Season 3 Beginners' course - Homework Post for Task 3: Bitcoin, a Cryptocurrency.
Hello Professor @stream4u, thank you for this great and educative lecture. I have gone through your course and it was quite enlightening.
Below is my submission for the task 3 of the homework.
What Is Bitcoin and what was the Aim Behind Bitcoin Invention? Is Cryptocurrency Good For A Business To accept As Payment? Why?
BITCOIN
Bitcoin also called BTC in short is the first digital currency that was invented in the year 2009 by Satoshi Nakamoto. The idea behind the invention of bitcoin was to have a decentralized financial digital means of transaction different from the normal centralized system of transactions we have the all parts of the word today.
The decentralized system of bitcoin helps each individual to be in control of their assets. Bitcoin can be sent to anyone and anywhere in every part of the world.
Bitcoin is gotten from its mining activity by miners. Mining bitcoin is a complex and complicated process that involves solving a mathematical problem. Once this problem is solved, it is used to hash a block in the blockchain network. A computer system is used to do this work and it is designed to mine a block every ten minutes. This is done by different persons in different locations at different times.
Bitcoin is the number one cryptocurrency that was invented. After its invention, many others have been invented too but some others failed.
Bitcoin is the controlling force in the cryptocurrency market today. The price of each of the coins are built around the price of bitcoin at every point in time. Once Bitcoin goes up, every other coin goes up and vice versa. That is the power of bitcoin.
THE AIM BEHIND BITCOIN INVENTION
Bitcoin was invented to have a decentralized means of financial transactions in the world. Thus, financial transactions can be done without the going through the centralized means transaction we have in banks that are controlled by the government which serves as a central body.
Bitcoin was invented so people can transact on peer to peer basis without any third party or central authority.
This decentralized system provided by bitcoin is very fast and quick and can be used to transact with people from different part of the world.
IS CRYPTOCURRENCY GOOD FOR A BUSINESS TO ACCEPT AS PAYMENT? Why?
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Cryptocurrencies do not maintain stable prices. They can be high in some period of time and before you know it they become low again.
Whether or not cryptocurrency is good for business is dependent on the persons involved and the aim of the one who accepts it as a payment for business.
In my opinion, cryptocurrency is not good for a business to accept as payment.
The reason I am of this opinion is not far fetched. In my understanding of cryptocurrencies, their movement is controlled by some persons. They determine when the price goes up and when it goes down. Even if they are not controlled, no one is exactly sure of the next action of a coin. Accepting crypto as a payment in business is disastrous and can make one go bankrupt if care is not taken. A coin that was sent to you when its value was $3.55 can fall to $2.80 in a twinkle of an eye but an indication may tell you that it can shoot higher in few minutes.
Even though the price can also go up after the coin has been sent to you, to facilitate continuity of your business and stay active, it is advisable to take precautions in order not to fall victim of crypto fall in price. The fall in price of crypto asset may take a long period of time before it rises back to normal. If the time you accepted the coins falls in this period, you may have to wait or loose out in business. This will be a big set back that can lead to heartbreak.
CONCLUSION.
Bitcoin is the father of cryptocurrency. It determines the price of every other cryptocurrency in the market. It was not invented to make people wealthy overnight as some people think today rather, it was invented to bridge a gap in the financial sector that disallows a third party interference with transactions.
Special Mentions:
@steemitblog
@stream4u
@sapwood
@reminiscence01
@awesononso
@lenonmc21
@wahyunahrul
A nice submission. Am also of the viewthat, some cryptocurrencies should be accepted as mode of payment in the sense that some assets are stable and no matter the market trend such assets do not appreciate or decline an example is the USDT.