Bitcoin and Cryptocurrency Knowledge Quiz

Study Notes

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.