Quiz 1 Flashcards
What is Bitcoin?
Cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator
What is Mining?
Process of adding transaction records to Bitcoins public ledger, otherwise known as the block chain.
How often does the bitcoin ledger reconcile?
Every 10 Minutes
Where is the bitcoin central server located?
There isnt any
Who Created Bitcoin?
Satoshi Nakamoto
What is the name of the first academic paper that described bitcoin commonly referred to as?
The Bitcoin Whitepaper
What is the name of the bitcoin exchange from Japan that famously collapsed in 2014?
Mt.Gox
How many bitcoin will ever be created?
21 Million
Name two countries that have banned their banks from servicing bitcoin companies.
Russia and China
What is the name of the general ledger that tracks all bitcoin transactions?
The Block-Chain
What month/year did the bitcoin network start?
January 2009
The computers that process transactions for the bitcoin network are commonly called:
Miners
An illegal underground market that sold drugs and other products for bitcoin was shut down by the FBI. It was called
The Silk Road
Which of the following names are NOT a fan of bitcoin?
Paul Krugman – Economist & Government Central Banks
Bitcoins can be divisible down to the eighth decimal point. What is that unit called?
Satoshi
Bitcoin is protected by encryption. The form of encryption used is called
SHA256
What is the fastest time you can send or receive payment in bitcoin without verification?
Instantaneously
What are a few other cybercurrencies that are competing against bitcoin?
Ethereum, Ripple, Bitcoin Cash, Litecoin, IOTA
What are the advantages of Bitcoin?
Payment freedom - It is possible to send and receive bitcoins anywhere in the world at any time.
Choose your own fees - There is no fee to receive bitcoins, and many wallets let you control how large a fee to pay when spending
Fewer risks for merchants - Bitcoin transactions are secure, irreversible, and do not contain customers’ sensitive or personal information
Security and control - Bitcoin users are in full control of their transactions
Transparent and neutral - All information concerning the Bitcoin money supply itself is readily available on the block chain for anybody to verify
What are the disadvantages of Bitcoin?
Degree of acceptance - Many people are still unaware of Bitcoin
Volatility - The total value of bitcoins in circulation and the number of businesses using Bitcoin are still very small
Ongoing development - Bitcoin software is still in beta with many incomplete features in active development.
