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GAINS Bitcoin Quiz Answers: March 2020

In the first of our quizzes, GAINS decided to assess how much the crypto community knows of the world’s largest cryptocurrency by market cap, Bitcoin. Find the answers below:

1: Who invented Bitcoin?

Answer: Satoshi Nakamoto

According to the Bitcoin white paper, it is claimed to have been created by a mysterious person, or a group of people referred to as Satoshi Nakamoto. The name, however, is a pseudonym to keep the actual person behind it off the grid. No one really knows who (s)he is (or they are!). Candidates for the post include Hal Finney and Nick Szabo and controversial figure Craig Wright, who went the extent of suing anyone who dared doubt his claim. Per this post, maybe Binance can tell you who Satoshi is.

Question 2: When was the genesis block of Bitcoin created?

Answer: January 3, 2009

11 years ago, Satoshi Nakamoto launched the Bitcoin network at approximately 18:15:05 UTC. The Bitcoin blockchain came to life on January 3, 2009, and so far, more than 600,000 blocks have been mined into existence.

Question 3: What is the intended limit for the Bitcoin supply?

Answer: 21 Million Bitcoins

In an obscure event that took place in August 2010 and is known as the “value overflow incident,” a code vulnerability allowed someone to send a transaction that created 184 billion bitcoins — 184,467,440,737.09551616 coins, to be exact — out of thin air. The mistake was quickly fixed and the network returned to its normal limit of 21 million coins.

Question 4: How many decimal places are there in Bitcoin?

Answer: 8

A bitcoin can be divided down to 8 decimal places. Therefore, 0.00000001 BTC is the smallest amount that can be handled in a transaction.

Question 5: What is the name of the smallest, non-divisible, unit of Bitcoin?

Answer: Satoshi

You are correct! Satoshi — named after the creator of Bitcoin and its White Paper — is the cryptocurrency’s smallest unit, amounting to one-hundred-millionth, or 0.00000001 of a coin. Maybe in a few years, you’ll be told: “That’ll be 10 Satoshis for your coffee, sir” ;)

Question 6: Is Bitcoin anonymous?

Answer: It depends.

Bitcoin is Pseudonymous. Sending and receiving bitcoins is like writing under a pseudonym. If an author’s pseudonym is ever linked to their identity, everything they ever wrote under that pseudonym will now be linked to them.

In Bitcoin, your pseudonym is the address to which you receive Bitcoin. Every transaction involving that address is stored forever in the blockchain. If your address is ever linked to your identity, every transaction will be linked to you.

If you want privacy, there are some companies providing that on top of Bitcoin, as well as native private coins but that’s a topic for another time! Alternatively, you can use a Bitcoin tumbler to make your transaction anonymous. Be careful about those though as they are monitored by authorities.

Question 7: What is the current block reward of Bitcoin, in March 2020?

Answer: 12.5 BTC

Bitcoin’s first block reward was 50 BTC. This meant that every 10 minutes a Bitcoin miner had 50 Bitcoins sent to their wallet for confirming a transaction. The current block reward is only 12.5 BTC, this is due to the block reward being cut in half (or halved), twice. The next halving in May 2020 will reduce the block reward to 6.25 BTC. This feature is programmed into Bitcoin and occurs every 4 years (210,000 blocks). This will continue until the last bitcoin is mined in 2140.

Question 8: In what year will all the Bitcoins be mined?

Answer: 2140

The last block that will generate coins will be block #6,929,999 which should be generated at or near the year 2140. What a time it will be to be alive then.

Question 9: In March 2020, how many Bitcoins have been mined?

Answer: 18.2M

There are currently 18,269,325 bitcoins in existence. This number changes about every 10 minutes when new blocks are mined. Currently, each new block adds 12.5 bitcoins into circulation.

Question 10: What is Bitcoin’s block time?

Answer: 10 minutes

The only time the block time was different was after the Genesis block was mined. The network did not kick into gear right away and unlike today, with blocks processed roughly every 10 minutes, the subsequent block after the genesis block took six days. Some say Nakamoto purposefully made it so the timeline was similar to the Bible’s Genesis tale when the earth was created in seven days.

A Bitcoin wiki forum claims that 10 minutes was specifically chosen by Satoshi as a tradeoff between first confirmation time and the amount of work wasted due to chain splits. After a block is mined, it takes time for other miners to find out about it, and until then they are competing against the new block instead of adding to it. If someone mines another new block based on the old blockchain, the network can only accept one of the two, and all the work that went into the other block gets wasted. Lengthening the time between blocks reduces this waste.

Having a block time of 10 minutes means there is a limit on the number of transactions made daily as compared to Visa that does 150 million transactions daily.

Question 11: What is the maximum number of transactions per second possible on Bitcoin?

Answer: 27

That number is highly theoretical though as we would need a block entirely filled with minimal size transactions to reach it. Bitcoin’s network is restricted to a sustained rate of 27 tps due to the bitcoin protocol restricting block sizes to 1MB. VISA, on the other hand, can handle on average around 1,700 transactions per second.

Question 12: What percentage of Bitcoin addresses own, combined, more than 95% of all the Bitcoins?

Answer: 2.66%

From the chart above, we see that 2.66% own more than 95% of all the Bitcoins currently in existence, representing 17.5 million BTC. This takes into account all wallets that hold from 1 BTC and above.

Question 13: The electrical energy used by the Bitcoin miners in a year is comparable to the yearly power consumption of:

Answer: Colombia (60 Trillion W.h)

Terawatt-hours is a standard unit used to measure electricity consumption. The yearly consumption of bitcoin is 58 TWh per year, comparable to that of Colombia at 60 TWh. If Bitcoin were a country it would be the 44th highest consumer of electricity.

Question 14: For how many Bitcoins did the famous pizzas sell for, in 2010?

Answer: 10,000.

A Floridian programmer, Laszlo Hanyecz, conducted the first-ever documented purchase of goods with BTC by buying two pizzas for 10,000 coins on May 22, 2010 — a day celebrated by the Bitcoin community ever since, while 10,000 Bitcoins were worth around $41 at the time, it amounts to $68,000,000 as of March 2020.

Question 15: On December 12, 2017, what was the average transaction fee of the Bitcoin network, in $?

Answer: $54

In December 2017, the average time per transaction went as high as 1,188 minutes. The highest average transaction fee for Bitcoin was $54 on 12th December 2017. This coincided with Bitcoin’s rise to $19k. The high fees were as a result of FOMO, and people wanting to move their Bitcoin in and out of exchanges quickly. The congestion in the network meant people paid more to process their transactions faster which led to the high fees paid in December 2017.

Question 16: On average, roughly how many Bitcoin transactions per day were there in March 2020?

Answer: 300k

In March 2020, Bitcoin did an average of 300k transactions daily. Average transactions peaked in December 2017 where there were 500k transactions per day. This is extremely insignificant when compared to Visa which does 150 million transactions every day.

Question 17: What is the single biggest transaction amount in BTC in history?

Answer: 500,000 BTC

A transaction done on November 16, 2011, holds the number one spot for the largest amount of bitcoin ever moved in one transaction where 500,000 bitcoins were moved. Bitcoin was only worth around $3 at the time, this represented around $1.5 million at the time.

Question 18: What is the amount of the single biggest transaction valued in $ the day of the transaction?

Answer: $1B

On Sept 06, 2019, someone made one of the biggest transactions in bitcoin history: 94,504 bitcoins, representing around 0.5 percent of all bitcoins currently in existence. At the then-current bitcoin price of around $10,600, this transaction was worth almost exactly $1 billion.

Question 19: How many of the biggest mining pools do you need to have more than 50% of the hash power?

Answer: 4

F2pool, Poolin, Btc.com, and Antpool command more than 50% of the BTC network hashrate. If these 4 decide to put their powers together with malicious intentions, there’s the risk of a 51% attack which occurs when a miner possesses more than half of the network’s hashrate, allowing them to make proof-of-work consensus their tool. This can lead to double spending — that is, having their coin and spending it at the same time.

Even scarier is the fact that the majority of pools, along with their computing powers, are located inside one country, China, which makes it much easier to capture them and gain control over Bitcoin.
Let’s note though that these companies are highly invested in Bitcoin’s success and that they have no interest in colluding since it might result in a global loss of trust in Bitcoin.

Question 20: How many forks of Bitcoin were there in total (active + inactive + in development)?

Answer: 105

There are 105 Bitcoin fork projects in total. Of those, 74 are considered active projects relevant to holders of Bitcoin (BTC). The remaining 31 are considered historic and are no longer relevant. Bitcoin XT was the first notable fork of the bitcoin protocol in 2014, and faced widespread media coverage. The most successful fork so far has been BCH, which split on August 1, 2017. How many forks do you know? This list has it all, including some very funny ones like Bitcoin Holocaust, Bitcoin Lambo, Bitcoin Boy, Bitcoin Snake and Bitcoin Oil (no prize for guessing what the founders of Bitcoin Snake and Bitcoin Oil peddle).

We hope you enjoyed this short and fun quiz. There will be more! Keep on learning with GAINS! Congratulations to all the winners.

Join us now! Enjoy quality articles, daily curated news, insightful infographics and enter a vibrant, fun and knowledgeable community!

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