503.1 Lesson - concentratedOwnership

Screen: concentratedOwnership

Headline: Bitcoin Ownership Is Concentrated on a Few Users

Reward: 2

Text: It is often said that a small number of wallets hold the majority of all bitcoin. While this is technically true, it is important to note that these wallets are typically owned by exchanges that have millions of customers.

Many people choose to leave their bitcoin on an exchange, but it is generally considered best practice to keep bitcoin in a personal wallet for security and privacy reasons.

It is also worth noting that a single bitcoin address can contain bitcoin belonging to multiple users, and a single user can control multiple wallets. To maintain privacy, it is recommended to generate a new address for each receiving transaction instead of reusing the same address.

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QUIZ

Question: Is it true that a small number of wallets hold the majority of all bitcoin?

Answer: Yes, but these wallets belong to exchanges that have millions of customers

Feedback: Congratulations! You've unlocked the ultimate bitcoin wallet mastery. Did you know that it is generally considered best practice to keep bitcoin in a self-hosted wallet for security and privacy reasons

Correct: true

Answer: Yes, and these wallets belong to individuals who have hoarded large amounts of bitcoin

Feedback: Nope, sorry! While it is technically true that a small number of wallets hold the majority of all bitcoin, these wallets don't necessarily belong to individuals who have hoarded large amounts of bitcoin. Keep learning about bitcoin

Correct: false

Answer: No, the vast majority of bitcoin is evenly distributed among a large number of users

Feedback: Uh oh, looks like you might have gotten the wrong answer. The distribution of bitcoin among users is not necessarily even. But at least you're learning about bitcoin!

Correct: false