Crypto Academy Season 3 Beginners' course | [Task 3: Bitcoin, Cryptocurrencies, Public chains.] by @emmanuel-malume
WHAT IS BITCOIN AND WHAT WAS THE AIM BEHIND BITCOIN INVENTION? IS CRYPTOCURRENCY GOOD FOR A BUSINESS TO ACCEPT AS PAYMENT? WHY?
image made by me from canva
like in all my post i love to define some word i would use that may sound new or strange to a newbie for easy understanding
Mining: Mining is a process of creating new and more bitcoin by solving high level puzzles or mathematics questions. This can’t be done by humans but rather high level computer that requires lots of energy. The mining process doesn’t only produce new bitcoin but increases the security of the bitcoin network
Open source software:
this is a program created that allows users to manipulate in any way pleasing to them without any restrictions
Blockchain;
stored iinformationthat are linked together
Now to the assignment in details
It’s not every time you see a big invention done by a mystery man but here we have one in bitcoin. We live in a world that keep evolving and everyday problems are being solved and more is been created . It is one of the problems of the world which is a financial problem of transporting money since money is a paper, centralization and government influence over money that lead to the creation of one of the greatest Invention of man mind , the first digital currency or in order words crypto currency in form of bitcoin .
The creation and launch of bitcoin happened in 2009 during a period of world economic crisis. Bitcoin was first earned as a reward for a process known as mining . It was created on an open source software and decentralized . It works on what is known as a blockchain where transactions were verified first before it could go through.
It was possible to transfer bitcoin from one person to another through peer - 2 - peer and also be exchanged for real life stuffs like paying for services , items, properties . The first transaction was on May 22. 2010, when a Florida Man makes Laszlo Hanyecz spent 10,000 BTC at Papa John's pizza for the purchase of two pizzas.
Upon it creation in 2009, it wasn’t really famed, understood or acceptable . It wasn’t untill a major event with a company known MT:GOX that bitcoin starting getting some recognition . You can read more on the story here source
Bitcoin was created like I said above to solve financial problems that proved the world . The problems had always been there but the 2008-2009 crises was the pinnacle that led to its creation. The major financial problems bitcoin solved were
Centralization of money :
Usually money value was decided by powerful people or institutions like government or big banks but bitcoin was created to eradicate this and push the power of deciding value of money to the peopleProtecting money more from physical robberies :
Banks have always been victims of robberies using guns and all but creation of bitcoin solves the problem of someone walking into a bank and asking you to bring out your money . Being digital , you can’t see the cash lying around for you to gather them and run away without a traceEasy transportation of cash :
Moving from one place to another always required one to be with cash to pay bills leading to one always needing to carry cash around but with bitcoin invention , with just your phone one could easily from one place to another with money on his deviceTo remove the influence of bank and middle men in transactions :
Crypto has made mode of payment involving intermediaries a thing of the past and bank being involved in transactions too. Now from the comfort of your home or room , you can run transactions through a feature called peer -2- peer .
Like all good thing , it has down sides too and the major ones include :
- A successful robbery causes more losses:
Bitcoins and crypto currency and stored on what is called wallets which they know the passwords to . If someone else can access this password , it is game over cause the person can perform an transaction without anyone consent and can easily change ones details too - Price fluctuations can be deadly due to emotions :
Emotions play a lot of role in the crypto world since power has been given to people, it means price of crypto reacts to people’s feeling towards it causing price fluctuations and this can be bad cause you can see Sth worth a million worth 10000$ the next day due to price fluctuations
Personally the answer is yes and for the questions why ? Let me give you my reasons.
1️⃣: Removing bank regulation of how you spend your money :
I had a personal experience one time actually , I had gone to buy Something with my friend recently and was meant to pay with cash . We got to the place and had chosen the item we wanted to buy and the problem came. Her bank hadn’t told her that she could not move certain amount of money into her account cause her account was rated students account . Her own money was been regulated not as if it was borrowed money . If it were crypto , we can’t see such limitation where an organization determines how you use your money and how you spend it . A lot of banks limit people spending limit with their ideology they are not rich enough yet to do such . Such nonsense can be eradicated with crypto .
2️⃣Reduce Robbery Rate :
Another thing risk of been robbed when going to buy a goods that require lots of money but you need to pay in cash. You are liable to been robbed when transporting the money or the money missing . Here in Nigeria , most igbo people prefer cash cause of bank rubbish putting them at risk of robbery but with crypto currency , this is reduced cause this cash can just be in your phone while transport them .
3️⃣ low transactions fees :
another unique problem about the banks that bitcoin solved . Banks are known to decide what ever amount they charge for transactions whether is in favour of the people or not but in the crypto world, we have the opportunity of experiencing low charges for making ones transactions
Crypto currency is just something taking its time to move but I expect it to successful blow up cause it’s something the world needs , in fact is a necessity of the world . It’s just time . Bitcoin has been facing some opposition recently cause of its wide adaptation but this I think will just increase its wide spread adaptation and it took a great step when a country known as 🇸🇻 EL SALVADOR accepted it as a legal tender recently . Bitcoin will continue to go wide and keep improving . It is quite noting the current price of btc as of this post is $33,2288.88
image gotten from coinmarketcap
With an ATH of $64,805.00 and I expect the ATH to be broken within this year or next
Thank you for this nice assignment
Go bitcoin
Go crypto currency
Hello @emmanuel-malume, I’m glad you participated in the 3rd Task of the Beginner’s class at the Steemit Crypto Academy. Your grades in this task are as follows:
Observations:
This is true. The worst part is that, the transaction cannot be traces to the hacker or the user who stole your asset. I believe this is one the reasons cryptocurrency adoption is still being delayed.
Recommendation / Feedback:
Thank you for submitting your homework task 3. We hope to see the rest of your submissions.
Thank you for your reply and effort prof