cryptocurrencies and bitcoins

Question 1

cryptocurrencies

Answer 1

digital or virtual currency that is secured by cryptogrpahy which ensures the safety of a transaction

Question 2

bitcoin

Answer 2

decentralized cyrptocurrency

Question 3

cryptography

Answer 3

mathmatical and computational practise of encoding and decoding data

Question 4

how is cryptocurrency mined?

Answer 4

mining- using a computer power to solve mathmatical problems that generate coins

Question 5

bitcoin miners

Answer 5

they recieve bitcoin as a reward for completing blocks of verified transactions which are added to the block chain

Question 6

pros of crypto

Answer 6

+decentralised system
+ easy and fast movement of funds wihtout a need of a third party
+ +can be used to transfer real money accross borders wihtout big exchange costs
+ blockchain makes it secure and transparent

Question 7

decentralised systems

Answer 7

a system where there is no single point of control or authority

Question 8

cons of crypto

Answer 8

• not anonymous
• wallets can be hacked
• high price volatility
• money laundering
• few legal protections