I am excited to be back here at the steemit cryptoacademy to participate in the homework task given by @stream4u.
What Is Bitcoin and what was the Aim Behind Bitcoin Invention? Is Cryptocurrency Good For A Business To accept As Payment? Why?
Bitcoin is a decentralized online currency, without the need of a central bank or government administrator(s), that can be sent between users ( user to user ) on the bitcoin network without the need for third parties or intermediaries. Transactions are verified by nodes by means of cryptography which are then recorded on the blockchain network. Bitcoin was invented in 2008 by Satoshi Nakamoto whose identity is still unknown, it was started to be used in 2009 when the open source software was released.
Bitcoin is gained through mining and can be exchanged for other crypto’s and currencies, used as a payment for goods and services.
Bitcoin has been used for making illegal transactions thereby raising some criticism, mining uses huge sums of electric energy and carbon footprint, its price is volatile.
The word bitcoin is defined was published on 31 October 2008. It is a compound word from bit and coin.
THE AIM BEHIND THE INVENTION OF BITCOIN
The Bitcoin concept first came about into creation in the year 2008 due to the Great Financial Crisis and the world’s financial reliance on government organizations and banks as intermediaries for all monetary or financial transactions.
Bitcoin’s founder, Satoshi Nakamoto, brought the idea of taking away the intermediaries banks from financial transactions, and creating a peer to peer payment system that did not rely on intermediary confirmation. This way, the government and banks do not get involved in individual daily transactions.
It employs the use mathematical algorithms to confirm each and every transaction without involving any bank or third party hereby performing every transaction using the blockchain network.
IS CRYPTO CURRENCY GOOD FOR BUSINESS TO ACCEPT AS PAYMENT? WHY?
Accepting cryptocurrencies as a means of payment is undeniably good for business and their growth, here are a few reasons why it,s good:
• Lower transaction fees: The lack of third party intermediaries dramatically reduces transaction fees. businesses accepting credit card payments face high fees but when accepting crypto currencies charges and fees are reduced.
• Merchant protection: Decentralization of the crypto protects both merchants and users from fraudulent charge backs. The transactions made are final, because there is no need for third party charges.
CONCLUSION
Now, 12 years later, Central banks are becoming more vulnerable due to the covid-19 pandemic, investors are searching for a safe system or insurance policy where their money is safe. An insurance policy where the investors would keep their funds other than banks, so that the value keeps rising and funds remain unaffected. precious metals such as gold were the main source of providing assurances to investors and it has been successful for over 5000 years. However, Bitcoin became part of history after 2008. Now investors are replacing bitcoin with the precious metals due to the inflation of prices.
THANK YOU.