Hello to everyone. I am happy to be in Season 4 of Crypto Academy. Let's continue to work together to improve this community.
In this assignment, I will talk about Bitcoin, some of the reasons that Satoshi Nakamoto intended to create Bitcoin, and I will make some defenses that crypto money can be a payment method. Have a good reading.
Question
What is Bitcoin and what was the aim behind Bitcoin invention? Is cryptocurrency good for a business to accept as payment? Why?
People heard the name Bitcoin for the first time in an article. In 2009, it was launched as an open-source code. Only 21 million were allowed to be produced in the initial protocol. When it came out, most people didn't know what it was and couldn't understand it. So what is Bitcoin?
Bitcoin is a virtual currency. It was invented by an anonymous software developer who referred to himself as Satoshi Nakamoto, but whose true identity remains a mystery. Maybe this developer chose to never mention his identity to make Bitcoin more mysterious. It is not affiliated with a state or center. It has no physical counterpart. If you own a Bitcoin, you have no choice but to show people your online wallet to prove it. It is based on mathematics. It can be obtained by trading on commodity exchanges and by mining Bitcoin. It is open to anyone who wishes, it is only necessary to understand and apply its system.
- Bitcoin is the first digital currency and was launched in 2009. It is traded on the cryptocurrency market and its current value (as I write this article) is $47,643.
- It has about half of the entire cryptocurrency market volume.
Bitcoin uses the decentralized network (Blockchain). This network is highly protected against third party tampering, ensuring that transactions are transparent and interception of transactions is impossible. All these pluses made Bitcoin popular in the short term and people started to see Bitcoin as an investment tool. With Bitcoin being traded on the stock market after the public offering, people start to hold Bitcoin and increase its value. They also started mining Bitcoin by doing “Mining”.
- How and why did Bitcoin originate?
In 2008, the world was in a major economic crisis. Stock markets came to the point of collapse, countries were in great difficulties. Seeing all these situations, the software developer Satoshi Nakamoto (or we know as his name like that so) decided to create a highly reliable digital currency thanks to a system that would not be dependent on any center and authority, accessible to anyone. This digital currency has fast transfer, low transaction fee, and easy usable. Thanks to this electronic payment system, he aimed that people should make the decision about their assets themselves, not others.
Bitcoin started to be used as a public network in 2009 and was named the 1st Generation Blockchain. The first Bitcoin transfer was also made between Satoshi Nakamoto and programmer Hal Finney. This digital currency started to gain value and some coins started to appear as an alternative to Bitcoin. Although some of these coins were able to hold on to the market, some others lost their value over time. Other coins other than Bitcoin are called "alternative coins".
Bitcoin is basically a digital payment method. It has a value like fiat currencies, but differs from them in many ways. It is of course crucial for cryptocurrencies that a business accepts payment with Bitcoin because it increases its usability. This is naturally reflected in its value as a plus.
When we look at the history of Bitcoin, it was the 2010s when it was first used as a payment method. 10,000 BTC was paid for 2 pizzas in a pizzaria, and this date is still celebrated as "Bitcoin Pizza Day". In the following years, cafes, restaurants, etc. in some countries businesses have announced that they will accept payments in Bitcoin, which has brought a great advantage for the crypto exchanges in general. In recent years, even countries are starting to recognize Bitcoin as an official currency. El Salvador took the first step and Bitcoin was officially accepted for the first time. Some countries are also starting studies on this issue. With all these examples before us, no one can say that the use of crypto money as a payment method creates a negative situation. Bitcoin is a digital payment method. It has been developing since 2009, and the fact that everyone has an estimate of the value in the following years shows how much its awareness has increased.
It is enough to have a crypto address to pay with Bitcoin. The connection between the sender and the receiver is encrypted with Blockchain technology and the transfer takes place between addresses. The most important thing to note when paying with Bitcoin is that once the sending is done, the sending cannot be canceled or blocked in any way.
Bitcoin is a digital asset that is growing more and more in popularity. It has continued to flourish in the 12 years since its inception, and perhaps many did not expect it to become so popular at the time. But today its value is obvious. He continues to raise other coins with himself. To me, the 2020s are a transitional period for the future, when we will be completely immersed in technology. That's why it's not too late to catch this technology early, learn, research and get involved in the process. No one denies anymore that it could be three times its current value. Over time, other countries will have to recognize Bitcoin whether they want it or not because as predicted, if Bitcoin continues to rise and develop, countries that do not recognize Bitcoin will be very, very backward compared to others. We, too, must investigate and help develop the rights this decentralized system gives us.
Thank you for reading.
CC: @stream4u