Crypto Academy Season 3 Beginners' course | [Task 3: Bitcoin, Cryptocurrencies, Public chains.] by @huzaifanaveed1
Hello everyone. This beginner assignment post is for professor sapwood as we wait for the advanced tier to begin.
So here we go:
What Is Bitcoin and what was the Aim Behind Bitcoin Invention? Is Cryptocurrency Good For A Business To accept As Payment? Why?
Bitcoin is the very first virtual currency to exist. Which means you can't touch this bitcoin as you can touch other physical currencies such as Dollars, Euros etc
It was launched in 2009 by an unknown character Satoshi Nakamoto. It is the world's largest Cryptocurrency as there no other competitors even close to Bitcoin. It is characterized by its transparent nature, as chances of fraud in bitcoin are close to none. It works on a Decentralized blockchain and not controlled by a central government or a bank etc. It is spread, traded and stored all within the blockchain. Bitcoin has been a very successful Cryptocurrency since its invention. Even as of today, things aren't in much favour of bitcoin as it is going through a bear market, but still it is WAY ABOVE ANY OTHER CRYPTO COIN
Before giving me the reason of Bitcoin's invention let me ask you a question.
Suppose you're living in some country and you want to send money to your parents back home. Now you have to go to the bank. There you will have to meet a bank representative or a worker. You will have to fill a form. Then you will have to pay some Transaction fee and then the process will get completed. Even after all this your money will take some time to be transferred to your parents account. Once the money has been recieved your parent will have to go to a bank and withdraw it.
Sounds hectic doesn't it? So would you prefer this?
BITCOIN on the other hand provides a p2p (peer to peer cash system) which does not include any intermediary network or a person. There are no central or focal authority required as you can directly transfer your money to anyone without having to face extra people.
Just like there can't be everything good in the world in the similar way there are both advantages and disadvantages of using in business. I will state both of them and in my opinion we should definitely use crypto as business payments. You can have different opinions ofcourse.
ADVANTAGES
a)LOW TRANSACTION FEES: sometimes we all get demotivated if we see high Transaction fees of something. In crypto we don't have to worry about that as it provides low Transactions fees.
b)TRANSPARENCY: It is a decentralized system in which all the transactions are recorded and you can go through them. There are multiple different types of security methods as well.
c) FAST TRANSFER: Who wouldn't want their work to be completed swiftly. I mean we're all humans and we want our business agreements to take place quickly. So in business agreements as well, transfer of money through crypto could be extremely fast.
d) SECURED: in the blockain ledger there are difficult puzzles which need to be decoded and are extremely hard. Furthermore the blockchains use pseudonyms that are not connected to any user which further increases privacy and security. So this is a mist point in any business transactions.
e) PEER TO PEER: in crypto Transactions there is no need for any intermediary. So you can have your business deals at your leisure without being dependant on banks or their working hours etc.
DISADVANTAGES
a) COULD BE ABUSED: one of the most alarming disadvantage of using crypto in business deals is that it could be abused. As the security level of blockchain is extremely high, your wallets can't be tracked down. So through crypto currency you can get invloved in illegal transactions such as drugs etc.
b) LOSING YOUR PASSWORD: This you might call a curse or a blessing. As you have our own private key and no once can get through your wallet. But by mistake if you lose your private key even you cannot access your wallet and could lose millions of cash. This troubles me alot as I usally forget things xD
c) HACKERS: Yes. Its true. Cryptocurrencies like any other thing is vulnerable to hackers as well. Even in the past some coins were hacked resulting in millions of loss to the users
d) NOT ENVIRONMENTAL FRIENDLY: Cryptocurrencies require mining which is not at all friendly to the environment. Mining consumes large amount of energy and electricity. So because of this huge amount of coals and other non environmental friendly stuff is used.
So this lecture comes to an end. First of all thank you professor @stream4u for this lecture as these assignment posts as well as the lecture would help the newcomers alot.
In this post we learned about bitcoin and its origination. We got to know the reason behind its invention. Furthermore we shed light on how crypto could be used in business transactions and whether it'd be a beneficial step or not.
I hope you had a good read.
Thank you
Regards,
@huzaifanaveed1
