What Is Cryto Flashcards
What is stored on a mining rig
A ledger of transactions and records that are stored on computers worldwide.
What do cryptocurrency computers have?
Identical copies of a ledger and their purpose is to continuously verify the contents of the ledger.
What is forking?
It is when the cryto PC is verifying the contents of ledger and they do not agree on the final copy of the ledger
How are cryto PCs rewarded
Ledger token
What decides how much a mining PC will get rewarded?
The amount of effort the pc puts into verifying the network(relative to all other PCs also processing the ledger
How is bitcoin similar to gold?
Is has no intrinsic value
The valuation of bitcoin is speculative(99 percent)
Is bitcoin private or anonymous
Not without help from third partys
What did companies do when they realise the potential of bitcoin. What did this act as? And what does this make them?
Started accepted fiat for conversion to bitcoin. This acted as liquidity and value provider for cryptocurrencies. This makes them the closest thing to cryto banks
Ways to store bitcoin?
On a cryto website in a wallet
Or in a private wallet
Even though these coins don’t hold intrinsic value, why could this change?
The emergence of distributed ledger technology with specific purposes will likely evolve to hold real value
What is poor with bitcoin?
The amount of transactions per second and its geographical mining centralisation
What attributes could make a crytocurries very popular?
Transaction scalability and geopolitical decentralization
What do you do if you have already made a 50 to 100 percent gain?
Take half of the money out just incase it falls. Or take it all out.
What is an eskrow in crypto
A mediator that keeps the money in safekeeping until the bitcoin are handed over. This protects the buyer from fraudulent sellers
What should you do if you are in the right place at the right time?
Fully commit
What can happen with FOMO?
You can lose big.
Is it OK to just follow a chart?
No, you must understand what you are buying.
What should you do if you don’t understand a currency
Don’t risk with to much money
What should you not do if you don’t understand or believe in a currency and what should you do if you do understand it
Don’t blindly hold it. Even if you are selling at a loss.
Put money into it.
What is an important lesson to remember to do with opportunity
There is always an opportunity elseware at another time if you are willing to be patient and keep an eye out
What is a price correction?
A rapid decrease of an asset from a recently achieved peak. The asset will usualy return to the price within the long established trend
Why is it not smart to join FOMO rallies?
They often end badly all of a sudden. Entry time is often too late also.
