Les 06/12 CRYPTOCURRENCIES
Waarom is crypto uitgevonden? To create a purely peer-to-peer version of
electrinoc cash would allow online payments to be sent direclty drom one party
to another without going through a financial institution = mogelijk maken te
betalen zonder tussenkomst bank
1. Bitcoin and Cryptocurrency Basics
Bitcoin: Created in 2009 by an anonymous individual or group using the
pseudonym Satoshi Nakamoto. The concept introduced Bitcoin as a peer-to-peer
(P2P) version of electronic cash, allowing transactions between parties directly
without involving financial institutions like banks.
Context: Bitcoin emerged in the wake of the 2007-2009 global financial crisis, a
period when public trust in traditional financial institutions, including banks,
drastically declined. This loss of trust was one of the driving factors behind
Nakamoto’s development of Bitcoin as an alternative financial system.
Other Cryptocurrencies: Bitcoin is only one example. Other notable
cryptocurrencies include Ethereum, Litecoin, and more. Each operates using
similar principles but with different functionalities.
2. How Cryptocurrencies Work
Digital Nature: Cryptocurrencies like Bitcoin are purely digital forms of money
and do not rely on physical assets like gold. They don’t go through traditional
banking systems but instead use blockchain technology to facilitate transactions.
Blockchain Technology: Blockchain is a decentralized, public ledger system
where all cryptocurrency transactions are recorded. Each transaction is verified
and added to the blockchain in "blocks," ensuring transparency and security.
-> blockchain is systeem dat het mogelijk maakt om cryptocurrency te gebruiken,
transacties zijn hierop recorded om fraude en sabotage te vermijden
Key Steps in a Transaction:
o Users (e.g., Alice) log into a wallet with a unique private key.
o Unlike traditional transactions involving banks, cryptocurrency transactions
are shared across a decentralized network of computers.
o Every 10 minutes, new transactions are added to the blockchain.
o Miners solve complex mathematical puzzles to validate transactions and
secure the blockchain. The first miner to solve the puzzle adds the
transaction record (block) to the chain and is rewarded with newly minted
Bitcoins.
o This process is called mining.
Finite Supply: Bitcoin is capped at 21 million coins, which will be fully mined by
approximately 2140. This limited supply is a key characteristic that differentiates
Bitcoin from traditional fiat currencies, which can be printed in infinite amounts.
3. Key Characteristics of Cryptocurrencies
Decentralization: No single authority or institution can control or manipulate the
cryptocurrency system. Transactions are verified by multiple actors in the network.
Public Ledger: The blockchain is public and accessible to all. Every transaction is
recorded, allowing for transparency and security.
, Security and Trust: The blockchain is designed to prevent fraud or tampering. If
someone attempts to alter a transaction, other participants in the network will
intervene and reject the tampered block.
Benefits:
o Democratization: The digital nature of cryptocurrencies can make
financial systems more accessible to people globally. However, some
knowledge of how cryptocurrencies work is required to participate.
o Anonymity: Cryptocurrencies provide a higher degree of anonymity
compared to traditional financial institutions, which are required to adhere
to strict Know Your Customer (KYC) regulations. While not entirely
anonymous, cryptocurrency transactions offer more privacy as less
personal information is required.
4. Advantages VOORDELEN
- no fees want bij banken moet je transactiekost betalen
- no territorial restrictions zolang je toegang hebt online kan je overal met crypto betalen
- no personal information want bij banken wel info geven..
- democratisation (on paper in theorie) want geen overheid of bank die tussenkomt
5. Risks and Disadvantages of Cryptocurrencies? NADELEN EN GEVAREN
Cryptocurrencies, despite their advantages, come with several risks and disadvantages,
which have attracted attention from both regulators and the public. LACK OF CENTRAL
AUTHORITY
-> nadeel 1 Use in Criminal Activities = Malicious use veel terroristische
organisaties gebruiken het want anoniem
Cryptocurrencies have become attractive tools for criminal activities due to their
higher anonymity compared to traditional financial systems.
According to annual reports like the Internet Organised Crime Threat Assessment
of Europe, cryptocurrencies play a significant role in facilitating illegal
activities due to the difficulty in tracing transactions.
-> nadeel 2 Scams and Fraud
The decentralized nature of cryptocurrencies can lead to fraudulent schemes.
New actors in the market, such as cryptocurrency exchanges and newly launched
coins, can lead to scams, including exit scams, where companies disappear with
investors' funds.
Via exit scam of rug pull scammen
< Bv exit scam ik begin mijn eigen crypto, mensen kopen dit, ik ook, later
verkoop ik al mijn eigen crypto waardoor de waarde daalt – anderen blijven met
lege handen achter = oprichters verdwijnen plotseling na geld te hebben
verzameld
< Bij rug pull wordt een cryptoproject bewust ontworpen om beleggersfondsen te
stelen. Bv Casus: Squid Game Token (SQUID) (2021) Wat gebeurde er?
Waarom is crypto uitgevonden? To create a purely peer-to-peer version of
electrinoc cash would allow online payments to be sent direclty drom one party
to another without going through a financial institution = mogelijk maken te
betalen zonder tussenkomst bank
1. Bitcoin and Cryptocurrency Basics
Bitcoin: Created in 2009 by an anonymous individual or group using the
pseudonym Satoshi Nakamoto. The concept introduced Bitcoin as a peer-to-peer
(P2P) version of electronic cash, allowing transactions between parties directly
without involving financial institutions like banks.
Context: Bitcoin emerged in the wake of the 2007-2009 global financial crisis, a
period when public trust in traditional financial institutions, including banks,
drastically declined. This loss of trust was one of the driving factors behind
Nakamoto’s development of Bitcoin as an alternative financial system.
Other Cryptocurrencies: Bitcoin is only one example. Other notable
cryptocurrencies include Ethereum, Litecoin, and more. Each operates using
similar principles but with different functionalities.
2. How Cryptocurrencies Work
Digital Nature: Cryptocurrencies like Bitcoin are purely digital forms of money
and do not rely on physical assets like gold. They don’t go through traditional
banking systems but instead use blockchain technology to facilitate transactions.
Blockchain Technology: Blockchain is a decentralized, public ledger system
where all cryptocurrency transactions are recorded. Each transaction is verified
and added to the blockchain in "blocks," ensuring transparency and security.
-> blockchain is systeem dat het mogelijk maakt om cryptocurrency te gebruiken,
transacties zijn hierop recorded om fraude en sabotage te vermijden
Key Steps in a Transaction:
o Users (e.g., Alice) log into a wallet with a unique private key.
o Unlike traditional transactions involving banks, cryptocurrency transactions
are shared across a decentralized network of computers.
o Every 10 minutes, new transactions are added to the blockchain.
o Miners solve complex mathematical puzzles to validate transactions and
secure the blockchain. The first miner to solve the puzzle adds the
transaction record (block) to the chain and is rewarded with newly minted
Bitcoins.
o This process is called mining.
Finite Supply: Bitcoin is capped at 21 million coins, which will be fully mined by
approximately 2140. This limited supply is a key characteristic that differentiates
Bitcoin from traditional fiat currencies, which can be printed in infinite amounts.
3. Key Characteristics of Cryptocurrencies
Decentralization: No single authority or institution can control or manipulate the
cryptocurrency system. Transactions are verified by multiple actors in the network.
Public Ledger: The blockchain is public and accessible to all. Every transaction is
recorded, allowing for transparency and security.
, Security and Trust: The blockchain is designed to prevent fraud or tampering. If
someone attempts to alter a transaction, other participants in the network will
intervene and reject the tampered block.
Benefits:
o Democratization: The digital nature of cryptocurrencies can make
financial systems more accessible to people globally. However, some
knowledge of how cryptocurrencies work is required to participate.
o Anonymity: Cryptocurrencies provide a higher degree of anonymity
compared to traditional financial institutions, which are required to adhere
to strict Know Your Customer (KYC) regulations. While not entirely
anonymous, cryptocurrency transactions offer more privacy as less
personal information is required.
4. Advantages VOORDELEN
- no fees want bij banken moet je transactiekost betalen
- no territorial restrictions zolang je toegang hebt online kan je overal met crypto betalen
- no personal information want bij banken wel info geven..
- democratisation (on paper in theorie) want geen overheid of bank die tussenkomt
5. Risks and Disadvantages of Cryptocurrencies? NADELEN EN GEVAREN
Cryptocurrencies, despite their advantages, come with several risks and disadvantages,
which have attracted attention from both regulators and the public. LACK OF CENTRAL
AUTHORITY
-> nadeel 1 Use in Criminal Activities = Malicious use veel terroristische
organisaties gebruiken het want anoniem
Cryptocurrencies have become attractive tools for criminal activities due to their
higher anonymity compared to traditional financial systems.
According to annual reports like the Internet Organised Crime Threat Assessment
of Europe, cryptocurrencies play a significant role in facilitating illegal
activities due to the difficulty in tracing transactions.
-> nadeel 2 Scams and Fraud
The decentralized nature of cryptocurrencies can lead to fraudulent schemes.
New actors in the market, such as cryptocurrency exchanges and newly launched
coins, can lead to scams, including exit scams, where companies disappear with
investors' funds.
Via exit scam of rug pull scammen
< Bv exit scam ik begin mijn eigen crypto, mensen kopen dit, ik ook, later
verkoop ik al mijn eigen crypto waardoor de waarde daalt – anderen blijven met
lege handen achter = oprichters verdwijnen plotseling na geld te hebben
verzameld
< Bij rug pull wordt een cryptoproject bewust ontworpen om beleggersfondsen te
stelen. Bv Casus: Squid Game Token (SQUID) (2021) Wat gebeurde er?
