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What happens during a Bitcoin halving event?
The block subsidy is reduced by 50%
How often does a Bitcoin halving event occur?
210,000 blocks
What was the block reward before the first Bitcoin halving in 2012?
50 BTC
Which economic principle explains the potential price increase after a halving event?
Demand and supply
What is the maximum supply of Bitcoin that can ever exist?
21 Million
How does Bitcoin's inelastic supply contribute to its price stability?
By preventing inflation through a fixed supply cap
Which economic theory emphasizes the importance of individual choice and free markets?
Austrian Economics
What is a key difference between Bitcoin and traditional fiat currencies?
Bitcoin has a fixed supply cap
How do difficulty adjustments help maintain Bitcoin's network stability?
By adjusting the mining difficulty to ensure a consistent block time
Which economic theory views Bitcoin as a store of value and a hedge against inflation?
Austrian Economics
What is hot custody in the context of Bitcoin?
Keeping Bitcoin in an online wallet
Which of the following is an example of cold custody?
A hardware wallet
Why is it important not to reuse Bitcoin addresses?
To enhance privacy and prevent linking transactions
What does coin control allow Bitcoin users to do?
Select specific UTXOs to spend
Who was the founder of the Silk Road marketplace?
Ross Ulbricht
What were the legal implications of the Silk Road case?
It led to stricter regulations and enforcement against illegal online marketplaces
What does KYC stand for in the context of cryptocurrency exchanges?
Know Your Customer
What is chain analysis used for?
To track and analyze Bitcoin transactions
Which of the following is a basic privacy technique in Bitcoin transactions?
Using coin control to manage UTXOs
What is the primary benefit of cold storage for Bitcoin?
Enhanced security by keeping funds offline
What happened during the Mt. Gox hack?
A large amount of Bitcoin was stolen from the exchange
What is a multi-signature wallet?
A wallet requiring multiple private keys to authorize a transaction
What is a hybrid multi-sig custody model?
A multi-sig wallet that requires approval from a third-party company
Which of the following is an advanced privacy technique?
CoinJoin
What is CoinJoin?
A method to combine multiple Bitcoin transactions into one, enhancing privacy
How do stealth addresses improve privacy?
By generating unique addresses for each transaction
What is the primary purpose of Tor and VPN integration in Bitcoin transactions?
To enhance privacy by hiding the user's IP address
What are Zero-Knowledge Proofs (ZKPs)?
Cryptographic proofs that validate a statement without revealing additional information
What was the impact of the Mt. Gox hack on Bitcoin regulation?
It resulted in stricter regulations and oversight of cryptocurrency exchanges
Which regulatory body is primarily responsible for overseeing cryptocurrency exchanges in the United States?
Securities and Exchange Commission (SEC)
What was the primary objective of the Cypherpunk movement?
To advocate for digital privacy and the use of cryptography to protect individual rights
Who proposed the concept of a cryptographically secured chain of blocks in 1991?
Stuart Haber and W. Scott Stornetta
What is Hashcash and who developed it?
A proof-of-work system developed by Adam Back
What message was embedded in the Genesis Block of Bitcoin?
"Chancellor on brink of second bailout for banks
Which of the following best describes the main problem Bitcoin aimed to solve?
Double-spending problem
Who is known as the creator of Bitcoin?
Satoshi Nakamoto
What is the main function of the Proof of Work (PoW) mechanism in Bitcoin?
To ensure network security and prevent double-spending
In the Bitcoin network, what role does a "node" play in the consensus process?
Verifying transactions and blocks
What key solution does the Bitcoin Whitepaper propose to ensure decentralization and trustless transactions?
Peer-to-peer network and cryptographic proof
Which early digital currency concept heavily influenced the creation of Bitcoin?
Hashcash
What problem does Bitcoin address related to traditional online transactions?
Need for trust between parties
Which technology forms the backbone of Bitcoin, according to the whitepaper?
Proof of work, peer to peer networks, digital signatures
What is the main benefit of using a peer-to-peer network in Bitcoin?
Eliminates the need for a central authority
According to the whitepaper, how are double-spending problems prevented in the Bitcoin network?
Using a proof-of-work system
What role do timestamps play in the Bitcoin blockchain?
They help to prove the chronological order of transactions
What does the term 'nodes' refer to in the Bitcoin network?
Software clients
Which concept introduced in the whitepaper allows for creating a new block to be computationally expensive?
Proof-of-work
What method is suggested by the whitepaper to come to a consensus on the transaction history?
Longest chain rule
How does the network incentivize miners to support the network and validate transactions?
Free transaction services, Transaction fees
What is the significance of the hard cap of 21 million bitcoins?
It helps to prevent inflation by limiting the total number of bitcoins that can ever be created.
What is the primary function of the mempool in the Bitcoin network?
To store unconfirmed transactions waiting to be included in a block
Which of the following best describes a Bitcoin transaction input?
A reference to a previous transaction output
What is a Bitcoin transaction output?
The amount of Bitcoin sent to a recipient's address
What role do transaction fees play in the Bitcoin network?
They incentivize miners to include transactions in the next block
How is a Bitcoin address generated?
By hashing the public key
What is the relationship between public and private keys in Bitcoin?
Public keys are derived from private keys and are used to receive Bitcoin, while private keys are used to sign transactions
What is a seed phrase in the context of Bitcoin wallets?
A list of words used to back up and restore a Bitcoin wallet
How does the fee amount affect a Bitcoin transaction in the mempool?
Higher fees decrease the time a transaction spends in the mempool
What is the primary purpose of a locking script in a Bitcoin transaction?
To restrict spending of the output until specific conditions are met
When a Bitcoin transaction is created, what information is NOT typically included?
Senders private key
What is the main purpose of Bitcoin mining?
To generate new Bitcoins and verify transactions
What does ASIC stand for in the context of Bitcoin mining?
Application-Specific Integrated Circuit
Which hashing algorithm is used in Bitcoin mining?
SHA-256
What is a hash function's primary role in Bitcoin mining?
To secure transaction data and create a unique hash
Which hardware was first used for Bitcoin mining?
CPUs
What is one significant advantage of ASIC miners over GPU miners?
Higher mining efficiency and speed
How did the introduction of ASICs in 2012 impact Bitcoin mining?
It led to industrial-scale mining operations
Which of the following is a challenge faced by off-grid Bitcoin mining?
Unstable power supply
What is a nonce in Bitcoin mining?
A random number used in the proof-of-work algorithm
What happens when a Bitcoin miner successfully mines a block?
They add the new block to the blockchain and receive a block reward
