BAFI 335 Quiz 3
When does NASDAQ composite occur?
1953-2002
altcoins
coins alternatives to Bitcoin, substitute like Litecoin
Bitcoin wallets
hardware(like a flash drive desktop custodians (coinbase, kraken)
when did Dow Jones industrial rise and fall occur?
industrial average, 1915-1942
what is SEC notice
need more settlements so institutions can develop and more investors are attracted
what is blockchain without bitcoin?
unnecessary, worthless pointless
What are some examples of custody and servicing
1. Bakkt 2. Fidelity Digital Assets 3. Coinbase
what is bitcoin the combination of
1. hashcash 2. public key cryptography (ex: 50 years) 3. distributed ledger-domain name database (ex: 25 years)
What percentage of institutional finance execs believe crypotocurrency will have place in fututre?
70%
Silos and trade-global GDP
80Trillion, bottom block is internet/data middle is blockchain and top is google Facebook amazon build on it
What is CME and CBSe
competes to futures contract (you will purchases a certain amount for price in future) on margin-allows for leveraged trading
is bitcoin centralized or decentralized
decentralized form of digital cash
what is bitcoin
digital currency you can use to send money directly to anyone with an internet connection, like email but for money it is like a replacement for venture capitalists (IPOS, equivalent, ICO, can't be controlled) peer-to peer electronic system
ICOS (initial coin offerings)
don't have to deal with SEC or venture capitalists, 1000s different types of ICOS, 70% of ICOS trade blow issue price, 80-90% fail , fraud, SEC Notice
what is software
encoding of human thoughst-AI can drive blockchain devlepment with centralized data-predictable lifestyle
What are other types of coins
ethereum, litecoin, CME CBOE
how is a hash founded
every 10 mins, new "block" is mined
what are network nodes
everything connected to internet
what is an example of popular source of crowdfunding
gofundme
What companies will push back on blockchain
google, fb, amazon...created products that are centralized, cheaper efficient, controls like non transparent and privacy goes away with blockchain
how does bitcoin get rid of centralization
has no security because each block has own identifier and is secure no data collection no need for control no need for security
what is crowdfunding
holding a public event where everyone can contribute certain sum of money to receive product you will make
ICO
initial coin offering, equivalent of stock market listing for software product using blockchain
what are bitcoins created as a reward for
mining, takes a lot of computing power, computer solving complicated math problems, verification process, proof of work, amount of bitcoin with reward
What is Bakkt
more infrastructure around cryptospace, trying to get ETF created with bitcoin
What did Andres Antonopoulos say?
need incentive aspect, it's all about "control"
What did Alex Rampell
need shared incentive network currency cannot be faked "no alchemy" record is real owner uniquely defined
what is decentralized
network that is run by people for the people with no central governing entity
what are crypotcurrencies
new assets that enable decentralized applications blockchain w/out crypotocurrency makes no sense
How many transactions needed for lightning network?
only 2 transactions (1 to open and 1 to close the channel)
bitcoin and blockchain succeed from open or closed form?
open form with closed, same stuff but slower
relational databases
oracle and SAP, centralized data, cheaper, more efficient
what are two 1980 relational databases
oracle and SAP...blockchain is next phase, Internet 2.0, not proven yet
crypototokens
other coins that are their own blockchains, closed network
why do we need bitcoins for bitcoin to work
participants who do the most work (miners) need incentives) bitcoin is scarce, never be more than 21 million bitcoins released over time with declining rate has no central issuing authority and is distributed
venture capitalist
process of collecting money from rich individuals or instituational investors in exchange for a share of your business
what is blockchain
public chronological log book where records are permanently stored across network, facts can be verified by anyone and no one can change records making system secure, trades in blockchain are stored in wallets
Where is bitcoin recorded
public distributed ledger called blockchain
What is the Howey Test
security, determine if ICO are security
what is lightning network?
small/everyday transactions that don't have to be associated with blockchain, small transactions hold off network, can reduce load on blockchain
what is mining
solving complicated math problems, guessing random sequence corresponding to something, verification of proof of work
bitcoin can what?
store value and brilliant shared incentive network our interests include to find new protocols that model can support
what is litecoin
test lab for bitcoin
what is hashcash
to prevent spam, email
formula for bitcoin/blockchain
trustees-middleman=bitcoin/blockchain
What is Fidelity Digital Assets
To service all digital assets for their 13000 institutional clients
why is bitcoin not taking over
VISA=24000 transactions per second bitcoin=7 transactions per second bitcoin cash=61 transactions per second
Fact example in bitcoin
A sends 2 BTC to B
what can blockchain be driven by
AI
When did the first bubble occur?
Gouda Tulip Bulbs in 1634-1637
what is bitcoin used for
Hard to transact for goods and servicesIllegal activitiesChina 90% to <1% 2018Remove the middle man
what is blockchain like early 70s-80s stock market
NYSE NASDAQ- American Philan Boston SFO goes from great production, to funding to selling data
Is Ethereum a seucurty according to the SEC?
No
what is cryptography
came from WW2 enigma, secure encryptions, code
why do we need bitcoin
cash doesn't work online credit cards are inconvenient transactions fees too high micropayments current systems require too much trust not all good customers are creditworthy underserved banking clients globalization
infrastructure is financially developing...
SEC getting involved, custodians are getting involved Fidelity, ETF, Yale promises will endow a fund for cryptocurrency
exchanges to trade cryptocurrenices
coinbase, close to 15000 exchanges! like Kraken, Mt. Gox binance =clunky infrastructure
Visa vs Bitcoin
Visa=4000 transactions per second Bitcoin=7 transactions per second
what univeristy wants to buy bitcoin
Yale got involved, wanted to catch up to Harvard
what is public distributed ledger
after every transaction, verified and permanently stored, located in all network nodes
what does decentralization allow for
all developers to come together with no one controlling where things are going
what is ethereum
another blockchain technology based application, scalability of ethereum: 30x more applicable
what is the middle man
banks, custodians, delivery.facilitators. accountants
what does the current generation bubble?
bitcoin, 2017 crash occurred, bitcoin ran up 60x it's value before coming down
what will ICOS be built on in the future
bitcoin, ethereum in future
What is the history of bitcoin
bitcoin,org registered August 2008 anuary 2009 Nakamoto mined first block of the chain, genesis block•Contained text "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks."•First transaction 12 January 2009 when Nakmoto sent 10 bitcoins to Hall Finney a cypherpunk•Nakamoto is estimated to have mined 1 million bitcoins before disappearing in 2010•Gavin Andresen becomes lead developer at Bitcoin Foundation
how are bitcoin transactions verified
by network nodes through cryptography