Crypto Academy Season 3 Beginners' course - Task 3: Bitcoin, Cryptocurrencies, Public chains.

Today I will make a homework assignment from my learning at the steemit crypto academy, here I will make an assignment given by professor @stream4u, about Bitcoin, Cryptocurrencies, Public chains.

Here the professor gives his assignment, the tasks are :

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

What Is Bitcoin and what was the Aim Behind Bitcoin Invention?

1. What Is Bitcoin ?

From my personal understanding of learning this lecture and I first want to interpret it in a simple sense, as follows; Bitcoin is a decentralized digital currency based on the internet and can be stored, transferred, and also traded on cryptocurrency exchanges.

Bitcoin is a digital currency, okay talking about digital currency before I want to explain first what is digital currency, what is meant by digital currency is currency that does not have a physical form or we often hear also as virtual currency, currency Digital currency has an exchange rate into the amount of currency that we usually use in everyday life, which is called conventional currency.

In the above sense I also mention Bitcoin is a decentralized currency, what is meant by decentralization here is a Bitcoin system that uses Block and Chain which we are usually familiar with Blockchain, the meaning of Blockchain and its relation to a decentralized system I have also explained in the second task learning, there I mentioned that "Blockchain has a decentralized system in consensus or mutual agreement that is transparent in the transaction process, so the data stored in it cannot be changed by anyone, so in a decentralized blockchain it can be said that anyone who is on the same network can own or view data stored on the blockchain network, and that is what a decentralized system is all about.

A person can store Bitcoin in his personal wallet file format with and without anyone knowing, Bitcoin can also be stored by third parties just like service wallets, but of course the difference between each of these wallets is when we talk about security and liquidity, because as stated above, I know that the more liquid the assets are, the less secure they will be.

The way to do the Bitcoin transfer process is to access the wallet, we must have a wallet first, we can send Bitcoin to other users on the condition that other users also have a Bitcoin wallet, and can create a Trush Wallet or register on several exchanges such as Binance, Bittrex, Poloniex, and others. Then for Bitcoin trading you can also register yourself on some of the exchanges I mentioned earlier.

2. What was the Aim Behind Bitcoin Invention?

From my personal understanding of myself the purpose of making Bitcoin is "Transparency" and "Ease", in this case as taught by the professor that Bitcoin uses a peer-to-peer network, where bitcoin is designed on a blockchain without a single and centralized controller or administrator which can be interpreted as a decentralized system. The opposite of Decentralization is centralization, centralization is a system where someone is there to control it, for example conventional banks, they have an admin to control and manage the system.

With the presence of Bitcoin, of course, it makes transactions easier and also minimizes the costs that must be incurred, we can compare this with sending using Conventional Bank services, in this case I want to write an example, "If I want to send money from Asia to Europe, if I using a Conventional Bank will require a very large fee, then compare it to sending using Bitcoin which only requires a few satoshi, and the process is also faster", and of course this makes it easier.

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

If we talk about payments using Cryptocurrencies such as Bitcoin currency, of course, everyone has a different opinion, some agree and some disagree (pros and cons), between the reasons for agreeing and not agreeing is about the price or exchange rate, such as What we all know is that the exchange rate of this digital currency is not fixed, it can decline and rise very quickly and can also fall very quickly (High Risk - High Return).

In this case some people may want to take advantage of accepting payments using Crypto currency, with the reason that they can trade them at a higher price later, but there is also a risk here, if we receive payments in crypto currency and then a few minutes later the price drops, it is There are risks involved in this case, but we also need to know that every profitable action, there will also have a risk of loss as well.

If talking about my personal opinion, then I will answer by choosing to use conventional currency instead of using digital currency like Cryptocurrency, why is that? I will also mention the reasons here, among others:

• Hacked by Hacker
  The security system of the blockchain in terms of cryptocurrencies is indeed very safe, but what was broken in this case was the Exchange exchange,

  
  ^{Source image [Pixabay]}
  if we look back at the events in 2009 where there were cases of Exchange burglary in various countries, you can find out more details by accessing them on an internet search. In 2017 I also kept some ETN on Cryptopia.nz, and until now I can't retrieve my assets because the Exchange has confirmed it was hacked.

• Regulation
  Speaking also about regulations, in my own country, namely Indonesia, it does not prohibit the buying and selling process on exchanges (Coin/Coin), but the direct payment process using digital currency as I know it seems not yet legalized (Coin / Paying Electricity, taxes , or otherwise).

• Lost Password
  Another risk is losing the password, what if someone forgets their email password or login password and cannot withdraw the asset that the buyer has paid for, then he or she will lose the asset. And another thing that is risky is sending the wrong wallet address, but I think this can be anticipated by only using a barcode when the delivery process is carried out.

But please also note that Cryptocurrency is not only "Bitcoin", there are many other currencies that can be used as a tool for processing payments, I think to reduce the risk we can use payments using Tether (USDT), because considering this currency does not have a high risk significant and incur huge losses. But it all comes back to ourselves, we want to process transactions using what and why, in this case I prefer to use my own country's currency, namely IDR/Rupiah.

Conclusion

In the explanation that I have described above, there I have written about the meaning of Bitcoin in simple language making it easier for readers to understand it, about the meaning and purpose of the formation of the digital currency "Bitcoin".

When we talk or discuss the point of "Payment using Cryptocurrencies" of course it raises debates between them, some agree and some don't, all of these things come back to ourselves personally, do you want to take more profit by receiving payments using other cryptocurrencies, or want to play it safe by only using stable cryptos such as USDT for example, or just want to use your own country's currency.

If we examine more deeply, actually Bitcoin is a very attractive currency to invest in, especially if we talk about profits, in this case you may get 7 times profit, but it is also possible that you will get 7 times loss too.

Professor @stream4u, this is my homework on Crypto Academy Season 3 Beginners' course - Task 3: about [Bitcoin, Cryptocurrencies, Public chains].