COMMERCE 4FY3- Blockchain 3

what does cambridge bitcoin electricty consumption index do

A tool that estimates how much electricity Bitcoin uses.

is bitcoin decentralized or centralized

decendtrzlied- controled by codes

what makes bitcoin a good currency

-portability:easy to carry around

-durability

-divisiability: can divide into smaller transactions

el savador and bitcoin

-makes bitcoin a offical money, shopes must accept it

-people used the free $30 and stopped

-9/10 people neer paid with bitcoin

-jan 2025: shopes don’t have to accept

Asymmetric cryptography:

A type of encryption that uses two keys:

• Public key → can be shared with anyone

• Private key → kept secret by the owner

zombie coins

funds that are”frozen” forver because lose private key

singing in bitcoin transactions

wallet uses private key to create a unique digital signature for a transaction.

how do miners verify

minsers uses public key to check singature

if youd dont hold provate key then what…

you don’t own bitcoin

censorship resistance

no bank can freeze your funds and no government can easily seize them easily

zero safety net

no forgot password

-no insurance

(No backup or protection if something goes wrong.)

what is custody anxiety

The worry about losing or mismanaging your cryptocurrency because you are responsible for keeping your private keys safe.

Crypto to wallstreet

10 years for sec to approve bitcoin

problem:ETF price can copy bitcoin price, no referee can see who is trading

Solution:Coinbase keeps a public trading record so referees can see who is buying and selling.

-trused companies hold coins for big investors

bitcoin indreict ownership (ETFs)

pros: tax-advanged accounts and convience

cons:mangement fees and trading hours

Bull run:

A period when cryptocurrency prices rise quickly and keep rising.

bitcoin as an investment

good:high return potential, improve liquidy, divrsfitication

bad:environmental impat and high volatility