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?
Bitcoin is a digital currency that cannot be physically seen but enables for safe pair-to-pair online transactions. It can also be viewed as the future's new money. Bitcoin is the first and most commonly used cryptocurrency, allowing people all over the world to send money directly to one another.
Bitcoin has been compared to traditional banks, but there are significant differences. Bitcoin has proven to be the best due to its decentralised nature.
You can save money by holding it, swap it for more money, and even contribute to charity. Bitcoin has the potential to be used as a long-term investment vehicle. Bitcoin has the potential to be used as a global means of value transfer. It's also a good way to learn more about new technology.
- Transactions in Bitcoin are recorded on the blockchain in the same manner that a bank's ledger is.
- Unlike a bank's record, the Bitcoin blockchain is spread over the internet. It is not accessible or controlled by anybody else. Anyone can join the network.
- Unlike FIAT currencies (USD, Euro, etc.) that can be reprinted if they become scarce, Bitcoin has a limit of 21 million units.
History of Bitcoin
Satoshi Nakamoto, a mysterious figure, invented the Bitcoin cryptocurrency in 2008.
Satoshi Nakamoto could be a single individual or a group of people that introduced the technology in 2008. The originator's background is unknown and has remained thus throughout history.
It was distributed as open source software in a decentralised system after its installation in 2009.
A total of 21 million Bitcoins were created as a reward for participating in a process known as "mine."
Mining is nothing more than a record of services rendered through the use of computer processing power.
Because of the amount of electricity used, price instability (volatility), and other factors, Bitcoin has been widely regarded as an illicit asset by international powers from its inception.
Bitcoin is used to make transactions in a pair-to-pair network, and they are validated by nodes using encryption, which is recorded in ledgers known as the blockchain.
Working of Bitcoin
Here's a quick rundown of how the Bitcoin cryptocurrency works:
It is operated in a decentralised manner. Its operations are carried out by mining rigs (specialised computers). These mining rigs are responsible for solving the mathematical equations required for the recording and verification of new transactions. A lot of electricity is required in the mining operation.As of October 2019, it takes around 12 trillion times more computational power to mine 1 Bitcoin than it did in the days of Satoshi Nakamoto.
Bitcoin miners work together to ensure that transactions are confirmed. When you make a transaction, you have to pay a fee. These fees can be regular or priority.
What was the Aim Behind Bitcoin Invention?
The primary goal of Bitcoin's creation is to increase transparency in financial transactions while also ensuring the long-term viability of global economic finance in order to resolve financial crises without relying on traditional institutions as middlemen. Instead of government agencies and banks, blockchain technology now controls the situation. The Bitcoin creation intends to break down the barriers between the rich and the poor, allowing the poor to become wealthy and the wealthy to become even wealthier.
Bitcoin, being the first cryptocurrency on the blockchain, has paved the way for the creation of other cryptocurrencies, but bitcoin remains the top cryptocurrency. In the blockhain realm now, there are over 5000 cryptocurrencies.
Is Cryptocurrency Good For A Business To accept As Payment? Why?
I believe that cryptocurrency can be a wonderful way to accept payments during commercial transactions, and I will say a resounding YES. This is due to the fact that it is a straight pair-to-pair transaction with no intermediaries, it is extremely fast, and it also acts as a safe method of payment that is free of fraud.
Other hand , advantage of cryptocurrencies as a payment method for commercial transactions is its low transaction fees. If you have employees from all over the world, for example, payment with cryptocurrency will be more convenient because you won't have to convert FIAT into several international currencies to pay them. When opposed to the hassle of transferring currencies in the traditional banking system, cryptocurrency payment across borders is so simple and free.
In addition, Microstrategy's Michael Saylor has publicly advocated Bitcoin as a form of payment since 1989.
Other countries, including Australia, Japan, and El Salvador, have accepted Bitcoin as legal tender, as has New Zealand, which was the first to legalise cryptocurrency salaries. Because of its rapid, trustworthy, and secure services, more entrepreneurs and businesses are accepting cryptocurrency as a form of payment.
As a result, I believe that accepting cryptocurrencies as a payment option is beneficial to a business.
Thanks you Prof . @shemul21
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