Continuing warm up for upcoming Intermediate and advanced tier, today i am writing task 3 of beginner level. Here we go.

Bitcoin unlike its name, is not any physical currency which we can touch, hold in our pockets or physical wallets or cash out from ATMs or banks. So it is not like a fiat currency with which we all are aware. Bitcoin is a digital asset or currency popularly known by a fency name of "blockchain based cryptocurrency" characterised by its decentralised and non repudiable nature, transparency and annonymity, Being a parent virtual currency released by mysterious satoshi nakamoto unleashed the magic of cryptocurrncy to the world with its SHA 256 (secure hash algorithm) encryption and concepts of Proof of work. Thousands ot cryptocurrencies that were created from time to time thereafter are known as "Altcoins" for being projected as better alternative coins to Bitcoin.

Bitcoin was created with the intention of serving as "Peer to Peer electronic cash system* . It means that BTC was launched with the intention of having a cash system independent of intermediaries and central authoritarian control or a cash system where transactions are executed between individuals without any interference by financial institutions.

Based on simple majority principle, i can say cryptocurrencies are good but not perfect. There are certain advantages where they dominate over traditional financial systems but in certain other features they may be disadvantageous to use in a business. So let me mention both the perspectives of their use .

Being a P2P financial system, dependency on banks is eliminated. In this way, you can transfer your funds to your peer anytime without having to bother about banking hours and bank holidays. Transactions can be performed from smart phones anywhere anytime, all that needed is a working internet connection which is not a big deal in this era. So we can save our time and resources .

There are no set working hours for cryptos, so transactions can be performed anytime. No need to bother about weekend bank closure or banking holidays.

It is not uncommon to see banking officials giving excuse of server down issue for transaction delay or failure. As cryptocurrencies are run on blockchains, and it is not possible that all nodes on the blockchain will be down at the same time. So there is 100% uptime on blockchain through which cryptcurrencies run.

As blockchain on which cryptocurrencies run, is a public ledger , the recorded transactions are immutable and noneditable. The public address of transaction can be viewed by all. Therefore it makes decentralized system more transparent and accountable. Different verification methods in place on blockchains make them more secure than our traditional banking systems. As businesses involve huge sum of money, security breech or fraud is unacceptable.

Global transactions are performed via cryptocurrencies and the good things is that they are executed spontaneously and there are no restrictions on transaction amount unlike traditional financial systems where one has to work as per set guidelines. Cross border transactions in countries having some economics tiee or other conflicts are either not possible or if possible are very difficult to get executed.

Transaction fee are lesser with cryptocurrencies as compared to centralized systems especially on international transactions.

Anonymous nature of transactions make cryptos vulnerable to use in illegal transactions like drug abuse, human trafficking , arms and ammunition etc. Classic example is that of silk market scam where BTC were used for illegal purposes.

We know that cryptocurrencies are highly volatile assets and it has its own pros and cons in business sector. Suppose, you sold some assets to any customer worth 1 BTc in the morning and in the evening you are seeing that BTC is 1000$ lesser than its price in morning. So you lost 1000$ in a day. However, reverse is also possible, you may gain additional profit because of price volatility.

Being decentralised, cryptocurrencies undoubtedly give traders absolute control over funds but in case of any untoward event like wild price swing, hacking, wrong transfers , there is no one to make claim to.

Some traders not willing to pay tax can be benefitted but that is not good for development of nations and is viewed seriously by governments.