7d - Cryptocurrency

Simply defined, what is a crypto currency?

It is a digital currency.

Cryptocurrencies function as a medium of exchange, similar to _ currencies.

Normal

Cryptocurrencies are classified as a subset of digital currencies and which other currency type?

Virtual currencies.

In $1998$, who published the description for "B-Money," an anonymous electronic cash system?

Wei Dai.

Identify the individual who created "bit gold," a precursor concept to Bitcoin.

Nick Szabo.

In what year was the first cryptocurrency, Bitcoin, launched?

In $2009$.

Identify the pseudonym used by the individual or group that launched Bitcoin.

Satoshi Nakamoto.

What is the primary purpose of exchanging digital information via cryptocurrency?

To use certain principles of cryptography for the exchange.

How is cryptography utilized regarding cryptocurrency transactions?

It is used to secure the transactions.

What role does cryptography play in the management of cryptocurrency supply?

It controls the creation of new coins.

List the two main market-related characteristics a customer should consider when choosing a cryptocurrency.

Market capitalization and daily trading volume.

Beyond market metrics, what are two additional characteristics for cryptocurrency customers to evaluate?

Verification method and retailer acceptance.

Term: Mining

Definition: The process where computer hardware resources are used to generate cryptocurrency like Bitcoin or Litecoin.

If a user runs a mining program for a third party, who typically receives the generated money?

The third party provider gets all the money.

How are cryptocurrency transactions confirmed and recorded?

They are confirmed in a public ledger via mining.

Cryptocurrency is described as an encrypted, decentralized digital currency transferred between _.

Peers

In the cryptocurrency system, what is the primary input provided by the user?

Electricity.

What is the primary hardware investment required to generate cryptocurrency?

Mining hardware (a mining PC).

Name a service mentioned that allows cryptocurrency to be exchanged for fiat currency like the Rupee.

unocoin.com

Identify the launch year for the cryptocurrency Dash.

The launch year was $2015$.

In what year was Doge-coin launched?

In $2013$.

Identify the launch year for Lite-coin.

The launch year was $2011$.

Identify the launch year for Black-Coin.

The launch year was $2014$.

Identify the launch year for Ripple.

The launch year was $2013$.

Identify the launch year for Name-coin.

The launch year was $2011$.

What specific digital entities are required to acquire crypto assets from an exchange?

Rules-based assets created digitally.

To buy cryptocurrency, what type of entity serves the function of a traditional currency exchange office?

An exchange or a broker.

Term: Crypto-currency wallet

Definition: A secure digital wallet used to store, send, and receive digital currency like Bitcoin.

Where can a user find a digital wallet for most cryptocurrencies?

From an official source or recommended third-party providers.

To use Coinbase, what three items are required to buy coins and set up a wallet?

An ID, a credit card, or bank account details.

Under EU law, what must a user provide to Coinbase to confirm their identity for buying cryptocurrencies?

A valid ID.

What is the fastest payment option for buying cryptocurrency on Coinbase?

Linking a credit card.

What is the primary benefit of linking a bank account to Coinbase instead of a card?

It offers higher limits and a slightly lower fee.

How can a user navigate to their BTC or ETH wallet within the Coinbase app?

Through the sidebar menu.

What are the two common options for sending cryptocurrency to an address?

Copying/pasting the address or scanning a QR code.

In the context of receiving cryptocurrency, what does clicking 'Request' allow a user to do?

Fill in the recipient's email to receive an email request for a set amount.

How does the decentralization of Cryptocurrency compare to PayPal?

Cryptocurrency is decentralized, whereas PayPal is not.

How is the value of PayPal determined relative to fiat currency?

It is pegged to the dollar.

Unlike PayPal, which is pegged to the dollar, cryptocurrency value is _.

Floated

What governs the behavior of PayPal transactions?

A contractual relationship with a corporation.

What governs the behavior of cryptocurrency transactions?

Military grade cryptography.

Where are cryptocurrencies primarily used and exchanged?

Outside existing banking/governmental institutions over the Internet.

As of June $2017$, the total market capitalization of cryptocurrencies exceeded what amount?

More than $\$100$ billion $USD$.

What was the record high daily volume for cryptocurrencies as of June $2017$?

Larger than $\$6$ billion $USD$.

Approximately how many digital currencies were in existence as of September $2017$?

Over $1100$ currencies.

As of November $2016$, which cryptocurrency held the largest market capitalization at $\$11.3$ billion?

Bitcoin.

According to the June $2017$ data, what was the market capitalization of Ethereum?

$\$29.2$ billion.

Which cryptocurrency is consistently priced at exactly $\$1.00$ according to the provided data charts?

Tether.

Identify the platform that hosts the OmiseGO token.

Ethereum.

Identify the platform that hosts the Ardor token.

Nxt.

Why is cryptocurrency considered safe against inflation and collapse risk?

Because it has a decentralized nature and low inflation risk.

How does the 'Fraud Protection' benefit of cryptocurrency work?

Transactions cannot be reversed, making it safe to sell goods and services.

What feature of cryptocurrency ensures that transactions are transparent?

The public ledger providing instant proof of payment.

How does cryptocurrency ensure high privacy for users?

Payments are made without personal information connected to the transactions.

What prevents a government or organization from manipulating the cryptocurrency protocol?

The decentralized nature and security ensured by the protocol.

List two primary disadvantages of cryptocurrency mentioned in the text.

Lack of awareness and risk of volatility.

Why is cryptocurrency currently considered imperfect and still developing?

Because it is still a relatively young and new currency.

According to the conclusion, what is required for cryptocurrency to succeed?

More people need to understand what it is.