Mining
How does mining work?
Mining works by validating transactions.
What is the current most recognized cryptocurrency on the market?
Bitcoin
What is a node?
Is cryptocurrency an actual currency? If not, what is it similar to?
No, and it is similar to stocks and real estate.
What do miners get as a reward for mining?
They receive small amounts of cryptocurrency.
When was Bitcoin first created?
2009
What is a Blockchain?
The main hub for recording crypto transactions.
What is crypto?
An asset/investment
What do the blockchains gain from rewarding miners with cryptocurrency?
Who created Bitcoin?
Satoshi Nakamoto
What is the difference between public and private keys?
Private keys allow for cryptocurrency to effectively be spent, while public keys allow for crypto to be received.
In what ways is crypto similar to real money?
It is held in wallets, it can be spent, and it can be received.
What is hash rate?
Hash rate is the rate at which a node can validate transactions.
When was crypto first conceived?
It was conceived in 1983.
Why are Blockchains so efficient?
Because they are extremely resistant to modification of data.
What is decentralization?
A lack of government control
Why do cryptocurrencies encourage mining?
It provides computing power to their Blockchain, making it work faster and more efficiently.
Who conceived cryptocurrency first? What was his profession (bonus 100 points if you get it right)?
David Chaum, cryptographer
Name all three ways that nodes support Blockchains.
They support Blockchains by either relaying transactions, validating data, or hosting a copy of a blockchain.
Why is extreme volatility so attractive?
It makes it much more enjoyable to invest when volatility is high, as their is a bigger risk and bigger reward.