Crypto Academy Season 3 Beginners' course - Task 3: Bitcoin, Cryptocurrencies, Public chains.
What is Bitcoin and what was the aim behind bitcoin invention? Is Cryptocurrency good for a business to accept as payment? Why?
Table of contents
| No. | Contents |
|---|---|
| 1. | What is Bitcoin |
| 2. | Aim behind Bitcoin creation |
| 3. | Is it good for business |
| 4. | Why Bitcoin |
Bitcoin
What comes to your mind when you hear the word bitcoin. Does your mind think first that it is a Ponzi money, fast money and many more thought that you may be thinking. I am here to give you a brief description of how bitcoin came into existence and why.
Bitcoin is the very first cryptocurrency to be launched into the world. Bitcoin was launched in the 2009 by Satoshi Nakamoto. As well known in the Cryptocurrency world, it is a decentralized digital money that erases the hurdle of a middleman or financial intermediaries that a down point in every transaction must be seen. Bitcoin emerged from a new and different dimension. Unlike fiat currency like the naira that is used in Nigeria, issued and regulated by the government, Bitcoin as a Cryptocurrency is backed by a Peer-to-peer (P2P) technology system.
Bitcoin was first created under the alias Satoshi Nakamoto; who is behind this name is still unknown. There is no idea if it is a group of persons, an organisation or an individual. Bitcoin was created to be a better and faster mode of transaction in reverse to the Centralized financial system. So far, it has lived up to its reasons of creation of making payment easier for its users across the world.
Aim behind Bitcoin creation
The idea to create Bitcoin came in 2008, the year the world experienced a great financial crisis and financial institutions mismanagement; Bitcoin came in as a response to the problem. Satoshi Nakamoto in 2009 created and launched Bitcoin, he provided a Peer-to-Peer (P2P) transaction method, one that escaped the third party interference. This way an individual was free to perform their own transactions and did not need to involve the bank or to be physically present in a bank to authorize a transaction. The introduction of Bitcoin erased slow rate of transaction as transfers can now be done easy and fast and do not charge much for each transaction.
When Bitcoin first came into existence, many people did not understand how money could be digital. In my country even till date, most people still call it fake money, some believe it was created to defraud innocent persons of their hard earned money. They didn't trust it's existence but recent years thy have learnt to accept it and even invest in it especially when it was in the bullish period, realising what they lost not investing early enough. Bitcoin energy consumption was cheap at first because there few persons mining the coin, but the miners and grew and different coins came into existence so did the energy fee increase making almost impossible to do anything now except for those that have enough in their wallet.
Is Bitcoin good for business
Bitcoin has proven to be an indispensable asset to the everyday activities of man.
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Business: Bitcoin blockchain was created in a way that it makes things easier for people. Traders can use it as an alternative payment which can authenticate a trade and the trader can also be paid immediately no matter the day or time of business. Bitcoin blockchain will ensure that everything transaction is Anderson transparent thus making void any fraudulent activities.
Banking: With the emergence of this coin, one does not necessarily have to present in a bank to approve any transaction. The bank's do not have to act as intermediaries and every transaction is down within 3-5 minutes in a day unlike the bank where on eis likely to spend almost the whole day trying to verify a deal. Bankers adopting this system will bring more sales and increase in market shares.
Online Marketing: Individuals can be able to trade their goods online with acceptance of bitcoin as payment and fair. This way they are able to provide options for their clients.
Advantages
- It's security is tight ensuring that your password is saved except you release it to an unknown source.
- It is fast and efficient and does not delay a transaction.
- It is a good investment as it increases in value overtime.
- It can be traded with anywhere, anytime in the world.
Disadvantages
- The password are lenghty and if not kept safe might result in loss of your funds.
- A beginner cannot trade in the Cryptocurrency world except be is able to learn the basic languages of the crypto world.