Quiz 1

Question 1

What is Bitcoin?

Answer 1

Cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator

Question 2

What is Mining?

Answer 2

Process of adding transaction records to Bitcoins public ledger, otherwise known as the block chain.

Question 3

How often does the bitcoin ledger reconcile?

Answer 3

Every 10 Minutes

Question 4

Where is the bitcoin central server located?

Answer 4

There isnt any

Question 5

Who Created Bitcoin?

Answer 5

Satoshi Nakamoto

Question 6

What is the name of the first academic paper that described bitcoin commonly referred to as?

Answer 6

The Bitcoin Whitepaper

Question 7

What is the name of the bitcoin exchange from Japan that famously collapsed in 2014?

Answer 7

Mt.Gox

Question 8

How many bitcoin will ever be created?

Answer 8

21 Million

Question 9

Name two countries that have banned their banks from servicing bitcoin companies.

Answer 9

Russia and China

Question 10

What is the name of the general ledger that tracks all bitcoin transactions?

Answer 10

The Block-Chain

Question 11

What month/year did the bitcoin network start?

Answer 11

January 2009

Question 12

The computers that process transactions for the bitcoin network are commonly called:

Answer 12

Miners

Question 13

An illegal underground market that sold drugs and other products for bitcoin was shut down by the FBI. It was called

Answer 13

The Silk Road

Question 14

Which of the following names are NOT a fan of bitcoin?

Answer 14

Paul Krugman – Economist & Government Central Banks

Question 15

Bitcoins can be divisible down to the eighth decimal point. What is that unit called?

Answer 15

Satoshi

Question 16

Bitcoin is protected by encryption. The form of encryption used is called

Answer 16

SHA256

Question 17

What is the fastest time you can send or receive payment in bitcoin without verification?

Answer 17

Instantaneously

Question 18

What are a few other cybercurrencies that are competing against bitcoin?

Answer 18

Ethereum, Ripple, Bitcoin Cash, Litecoin, IOTA

Question 19

What are the advantages of Bitcoin?

Answer 19

Payment freedom - It is possible to send and receive bitcoins anywhere in the world at any time.

Choose your own fees - There is no fee to receive bitcoins, and many wallets let you control how large a fee to pay when spending

Fewer risks for merchants - Bitcoin transactions are secure, irreversible, and do not contain customers’ sensitive or personal information

Security and control - Bitcoin users are in full control of their transactions

Transparent and neutral - All information concerning the Bitcoin money supply itself is readily available on the block chain for anybody to verify

Question 20

What are the disadvantages of Bitcoin?

Answer 20

Degree of acceptance - Many people are still unaware of Bitcoin

Volatility - The total value of bitcoins in circulation and the number of businesses using Bitcoin are still very small

Ongoing development - Bitcoin software is still in beta with many incomplete features in active development.