Crypto Academy season4 Beginners course Task5: Bitcoin, cryptocurrencies, public chains by @viviandaniella

Hello friends,

Special thanks to @stream4u for the wonderful lecture. Below is my homework task.

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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?

It is a digital currency that came into existence in the year 2009. Satoshi nakamoto is believed to have set out the ideas followed by bitcoin( white paper). The inventor of bitcoin is actually anonymous. Bitcoin is used for payment in most countries. It cannot be gotten physically or from a bank. It is actually stored in blockchain, which is a decentralized ledger system. With Bitcoin other altcoins came into existence. Public and private keys are used to keep bitcoin balance. These keys are usually kept safe and can only be used for authorization of bitcoin transmission.

Aim Behind bitcoin invention

Bitcoin was created so as to ease and fasten the transaction of receiving and sending cash over the internet. It was invented to be completely decentralized and be used as a means of payment other than just the use of cash.

Advantage of Bitcoin

• it is transparent
• it is decentralized and as such cannot be issued by banks
• it is very fast to send.
• it has great liquidity

Disadvantages

• it is actually volatile
• it can lead to high risk of losses
• since no one governs how bitcoin functions, complains cannot be sorted out.

is cryptocurrency good for a business to accept as payment? Why?

yes cryptocurrency is very good to be accepted for payment because of the following reasons.

• Accessibility
Cryptocurrency is available to users all over the world. They can actually send and receive cryptocurrency anywhere and anytime. A user do not need to pass through the stress of going to a traditional bank to access cryptocurrency.

• security
Cryptocurrency are not physical currency and cannot be held on palm so it is not easily stolen by thieves. Also the private keys are highly encrypted, it remains very difficult for them to be easily manipulated by thieves.

• irreversibility
Cryptocurrency do not actually work with a third party, so it will be very difficult for third parties such as government officials or financial agencies to tamper with an already received or sent cryptocurrency.

• mobility
Payment can be done anywhere and at anytime. A person do not have to travel to any particular location before accessing it. The only requirement is internet connection.

• low transaction fees
Cryptocurrency transactions is usually fast and does not require too much transaction fee, no matter what area of the world a person is receiving or sending from.

Cc;
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