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What is the collateral behind bitcoin? - Crypto

In this Blockchain interview questions , I have collected the most frequently asked questions by interviewers. These questions are collected after consulting with top industry experts in the field of Blockchain & related technologies.


Asked On2022-01-09 07:46:05 by:Akhil-Dev-D

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 There are only a few collaterals supporting bitcoin.

In order of importance:

  • Belief in the authenticity of the code
  • Security of the code through validated proof-of-work (mathematical infallibility)
  • Cost of work, which justifies authenticity of proof of work and results in a stock-to-flow exponential growth in hash rate and mining cost
  • Consensus of market buyers through purchase, security validation of keys and proof of resistance to double spending
  • Accrual of steady price growth through fixed, inviolable scarcity, and long-term hodling
  • The anonymity of the original premine (1,000,000 Bitcoin's) by Satoshi Nakamoto (like due to death), thus removing the vagaries of human influence (marketing) to organic market growth
  • Lindy Effect (the longer something survives, the longer its longevity), first to market, Metcalfe's Law and Moore's Law

Answerd on:2022-02-10 Answerd By:Raj-Gupta

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