What are a currency
A commonly accepted means of payment
Define intrinsic value
To be valuable independently of the fact that they are used as currency
Do currencies need to have intrinsic value and why
No they don’t because a currency may derive its value purely from people accepting it as a mean of payment
What are fiat currencies
Currencies with no intrinsic value
Explain why individuals who posses infinitely of something cannot be a currency
The total quantity of a currency has to be finite and therefore controlled
What is tangible money
Physical money like banknotes
What is intangible money
Digital or electronic money
What is Satoshis goal
To create a currency unlike traditional currency that can operate without the intervention of a trusted 3rd party,
So a dynamic registry of transactions:
What are the 3 things that Satoshi wanted to achieve (the rules for it)
- any user can enter new transactions
- transaction cannot be removed from the ledger
- no user outside entity possesses more decision power over the ledger than others
Put briefly what Satoshi wanted to achieve
Work out how to make a decentralized ledger work
What does BBT stand for
Book of brilliant thoughts
Name why consumers will not deviate from the norm and follow everyone else (2 theories)
The cost of retrospective change and the risk of working alone
Explain the cost of retrospective change theory
If you want to modify something you must rechange every thing in it and by the time you’ve finished with the changes the end result is longer than the original
Explain the theory of risk of working alone
If a new valid version of a book for example is available to you you will carryon with your book but the other group will finish theirs first so you follow the crowd with which you work on
