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

Introduction

At previous times, I was always at lost and mostly uninterested anytime I heard the word Bitcoin or cryptocurrency being mentioned. I had serious reservations like the fact that these concepts could not be seen physically. However, with the years, I have come to gain valuable insight about some terminologies and principles of the crypto currency world. So, I will go ahead to express my understanding of the questions above.

What is Bitcoin?

By sheer looking at this term is it easy to decode that it is related to money. A good number of persons know what a coin is atleast.

Just like the name suggests, bitcoin is is type of money or currency which unlike the normal, physical coin, it is virtual and digital. Bitcoin is the first of its kind. Bitcoin is a cryptocurrency which was devolped in 2009 by a somewhat mystical author by the name Satoshi Nakamoto. This programmer's real identity and details is yet to be discovered.

Bitcoin being a cryptocurrency means that is was developed using coding protocols and cryptography. As such, it only exists in the digital space and can only be operated using an online medium. Before its official launch in 2009, Satoshi Nakamoto had already written the code and programme referred to as whitepaper for bitcoin a year before in 2008.
Bitcoin is the genesis of all cryptocurrencies and crytopcurrency transactions in the world today.

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All other cryptocurrencies in one way or the other have their bearing to bitcoin. A lot of these coins, mostly referred to as alternative coins or simply altcoin, were developed by mimicking the programming code of bitcoin. A lot of altcoin programmers use the algorithm of the first bitcoin block usually known as bitcoin block 0 or bitcoin genesis block to create their own crytopcurrencies. The works of Satoshi Nakamoto has been greatly referenced by all subsequently developers and bitcoin is used as the prototype of all altcoins.

Bitcoin is a decentralized digital currency implying that no one person or organization has absolute control over it. In bitcoin transactions, there are no third parties unlike in the traditional banking systems where the bank acts as and intermediary between the transacting parties.

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Satoshi Nakamoto's code enabled him to create a digital folder where files and data were contained. This constituted the genesis block which is a kind of cell. Through the continuous linking of this cells or blocks, the bitcoin block chain was established.

Each bitcoin is made up of 100,000,000 satoshis (the smallest units of bitcoin), making individual bitcoin divisible up to 8 decimal places. This allows people to purchase fractions of a bitcoin. Source.

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At present, several of these blocks have been mined and added to the chain. Till date, bitcoin ranks at #1 among all other cryptocurrencies and controls the largest market share and dominance. Bitcoin has the highest value in the crytopcurrency market and is able to dictate the dynamics of the market.

What was the Aim Behind Bitcoin Invention?

Bitcoin was invented to tackle some deficiencies that are associated with physical fiat currency transactions. There had been growing concerns about the inadequacies of fiat currencies and their transactions and models were proposed to deal with this. One such solution was the development of virtual cryptocurrencies which began with bitcoin. Some of the direct reasons for creating bitcoin include:

• To be able to send money from one person to another over the internet without the interference or the platform of banks. This is the concept of peer-to-peer transactions which enables a sender and a receiver to transact directly over the internet.
• To remove the limitations of using a bank or banking interface such as time and location.
• To transact faster and quicker.
• To reduce banking regulations and control of currencies that is the need to avoid central governance of money. Bitcoin is able to function in a decentralized space.
• To reduce cost, fees and charges on transactions.
• To be able to control and maintain the value of money and avoid devaluation and high inflation.
• To allow free flow of money across the world without restrictions using the peer-to-peer technology.

Bitcoin will do to banks what email did to the postal industry – Rick Falkvinge

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

Cryptocurrency is very good for a business to accept as payment. This is because there are many advantages of using a cryptocurrency and transactions with cryptocurrencies offer better features than normal fiat currencies. Some reasons why receiving payments in cryptocurrencies is good for business include:

• Cryptocurrencies cannot be faked and does not have counterfeits as fiat currencies usually do. At times, people can generate fake bank alerts and notifications. This is absent with cryptocurrencies as one can verify every transaction independently and immediately.
• Payments in cryptocurrencies are nice because they support easy manipulation. Unlike receiving fiat currencies which will definitely be bulky or draw attention. A business can also easily send the money to any location or person.
• With cryptocurrencies, it is easy to send huge amounts across without restrictions or limits as with bank transactions or with real money.
• Cryptocurrency payments are safe. With the well-structured encryptions and security systems, theft and swindling is much more difficult.
• Payments in cryptocurrencies allows for privacy and are exposed to less monitoring and control.
• Charges that accompany crytopcurrency payments are quite less and infrequent unlike with fiat.
• Cryptocurrencies allow for convenience and have higher chances of increasing in value.
• Cryptocurrency market is becoming global and is highly accepted. This places businesses that transact in cryptocurrencies at advantage positions and make them more suitable for the current trend and era.

Cryptocurrency is such a powerful concept that it can almost overturn governments – Charles Lee

Conclusion

It is believed by most people that one of the best things to have happened to the world is the invention of bitcoin and cryptocurrencies as a world. There has been some much transformation as well as advancement with the advent of cryptocurrencies. Accordingly, it is no surprise that the crypto sector has experienced huge patronage and wide acceptance. It will be a disservice to anyone not to get acquainted with the gradually dominating sector. A whole lot of altcoins have been developed after bitcoin and are still being invented with more modifications and features. Truly, cryptocurrencies are here with us and they are here to stay.
This lesson has been so insightful Prof. @stream4u. Kudos!