(1) proves that the equation holds when x= initial value;
(2) Assuming that the equation holds when n=k, it is proved that it also holds when n=k+ 1
Note that these two steps are indispensable, because k can be any positive integer, so after n= 1 holds, it can be inferred from the second step that n=2 holds, and then n=3 holds. ...
If the assumption is wrong, your formula is simply wrong, so step one: when x= initial value, the equation does not hold.