Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Books I've Read > Bitcoin > Flashcards

Bitcoin Flashcards

1
Q

What year did Bitcoin start?

A

2009

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What world event launched bitcoin?

A

2008 Financial Crisis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Why was the 2008 Financial Crisis the cause for bitcoin?

A

US government was printing lots of money which led to inflation.

Big banks were bought out, small wage workers and business owners were not.

The big banks used bail outs to buy further toxic investments

This led to a desire for a decentralized system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When was blockchain created?

A

1998

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What does bitcoin do differently than traditional systems?

A
  1. Sender and receiver are unknown
  2. Cryptohash is used to do this
  3. There is no single identity that controls the system; rather everyone on the system controls the system
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How does bitcoin mining work?

A
  1. There is a network of computers (blockchain)
  2. Every computer can create bitcoin
  3. Mining is done by solving cryptographic problems
  4. 51% of other computers have to validate the work
  5. Then new block is validated and becomes part of the chain
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Is bitcoin anonymous?

A

Not necessarily, BTC carries a high degree of anonymity, but transactions are stored on an open source ledger

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How much bitcoin could ever exist?

A

21M

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the benefit of a decentralized currency?

A

Government cannot enforce it, seize it, or do anything shady

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How is bitcoin better than gold?

A
  1. Gold is not divisible
  2. Gold is not portable
  3. Gold can be stolen
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Why is bitcoin worth so much?

A

It’s a wildly speculative technology that sells a vision of the world and anyone can buy into it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Bitcoin is too expensive for real world application, so why would we ever use it?

A

Likely we’d use it in divisible chunks such as mBTC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Can a government ban bitcoin?

A

Yes, however due to its digital nature, it’s impossible to enforce widespread ban

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Can I mine bitcoin on my computer?

A

Yes, but electricity costs will cost you more than you’ll get back in bitcoin.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Where is most mining happening now and why?

A

In China because electricity is cheaper

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Can bitcoin be traced?

A

Every transaction is public record, so people could find a way to link your public wallet to your transaction

17
Q

Can bitcoin be hacked?

A

Would be a multibillion dollar project to hack bitcoin so unlikely. However bitcoin exchanges can be hacked

18
Q

What is the biggest example of a bitcoin exchange being hackedk?

A

Mt. Gox

19
Q

What is the highest bitcoin can hit?

A

Unsure, it could theoretically hit $1M, the M1 Monetary supply

20
Q

Do I pay taxes on crypto?

A

Yes, capital gains taxes on any bitcoin you mine, buy, or use.

21
Q

How much illegal activity is conducted with bitcoin?

A

Only about 1%

22
Q

What gives bitcoin the intangible

A
  1. Any news of block chain benefits bitcoin
  2. Whenever there is government unrest, that benefits bitcoin
  3. Any news of crypto benefits bitcoin
23
Q

What percentage of crypto is bitcoin?

A

68%

24
Q

What major reasons indicates bitcoin is likely to stick around?

A
  1. Financial Institutions (like paypal) are starting to adopt it
  2. Lots of big names are in bitcoin (Musk, Robert Kiyosaki)
  3. Founders (Nakamoto) still are bought in
  4. BTC is anti-fragile
25
Q

Who is the founder of bitcoin?

A

Satoshi Nakamoto

26
Q

What makes bitcoin anti fragile?

A
  1. Inflation of local currency benefit BTC
  2. BTC has less regulation
  3. Any disturbance in the economy benefits BTC
27
Q

Why is coinbase better than other platforms for purchasing bitcoin?

A

Coinbase lets you directly purchase bitcoin for low expense fees.

28
Q

What are the three ways you should not buy bitcoin?

A
  1. Robinhood
  2. Grayscale Bitcoin Trust (GBTC)
  3. Bitwise 10 Crypto Index (BITW)
29
Q

What two reasons makes robinhood not a good investment platform for crypto?

A

You don’t own bitcoin on robinhood, they store it in their own digital wallet. Plus bad commissions fees.

30
Q

Why is it important to not have an online wallet?

A

Can be hacked and you don’t own it.

31
Q

Why is there so much volatility in crypto?

A

Because it is a wildly speculative technology and no one knows how it will be used.

32
Q

Is there any merit to purchasing altcoins?

A

No, simply because most alt coins are fraudulent or have no real applications

33
Q

What is a good ETF to invest in for bitcoin?

A

The Siren Nasdaq NexGen Economy (BLCN)

34
Q

Why is Paypal a good long term bitcoin investment?

A

They are investing heavily in bitcoin transactions and venmo will soon also do the same

Books I've Read (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions