Bitcoin and Cryptocurrency Knowledge Quiz

Bitcoin: Key Facts and Context

• Bitcoin (BTC or XBT) is the first decentralized cryptocurrency, created in 2008 by an unknown person named Satoshi Nakamoto.
• The peer-to-peer bitcoin network uses cryptography to verify transactions and records them in a public distributed ledger called a blockchain, without central oversight.
• Consensus between nodes is achieved through a computationally intensive proof-of-work system called mining.
• Bitcoin mining requires increasing quantities of electricity and was responsible for 0.2% of world greenhouse gas emissions as of 2022.
• In 2021, El Salvador adopted Bitcoin as legal tender, marking a significant milestone in its use as a currency.
• Bitcoin is primarily used as a store of value rather than a medium of exchange, with its use as an investment being prominent.
• Many scholars have described Bitcoin as an economic bubble, reflecting its volatile nature and speculative investment patterns.
• Bitcoin's pseudonymous nature has raised concerns about its use by criminal entities.
• The cryptocurrency's use and adoption have been influenced by a free market ideology.
• Bitcoin's open-source implementation in 2009 marked the beginning of its use as a currency.
• Bitcoin's increasing popularity has led to debates about its environmental impact due to the energy-intensive nature of mining.
• The cryptocurrency's decentralized nature and reliance on blockchain technology distinguish it from traditional forms of currency and payment systems.