Question 1

The maximum number of bitcoins allowed into currency at any point in time is capped at what?&#10;A)15 million.&#10;B)21 million.&#10;C)12 million.&#10;D)18 million.

Accepted Answer

The maximum number of bitcoins allowed into currency at any point in time is 21 million. With the way the Bitcoin protocol was established, there can never be more than 21 million bitcoins in existence. This is slightly less than two times the current number of bitcoins in existence, which is 12 million.

Question 2

How many atomic units can the total supply of bitcoins be broken down into?&#10;A)2 billion.&#10;B)200 billion.&#10;C)2 trillion.&#10;D)2 quadrillion.

Accepted Answer

The total supply of bitcoins can be broken down into 2 quadrillion atomic units. Because each bitcoin can be broken down into .00000001BTC, the total number of possible atomic units is exponentially large.

Question 3

When is the supply of bitcoins expected to cease?&#10;A)2020&#10;B)2080&#10;C)2140.&#10;D)2200.

Accepted Answer

The supply of bitcoins is expected to cease in 2140. Bitcoin was set up so that the reward for mining each block decreases, halving every so often. In 2140, it is expected that the last Bitcoin block will be mined.

Question 4

In 2011, the value of a single bitcoin skyrocketed to $32 from $0.30, then plummeted back to which of the following?&#10;A)$0.10.&#10;B)$0.25.&#10;C)$0.50&#10;D)$2.00.

Accepted Answer

In 2011, the value of a single Bitcoin skyrocketed to $32 from $0.30, then plummeted back to $2.00. Although this was one of the earliest Bitcoin bubbles, the value of Bitcoin was still undervalued at its $32 peak, as they currently trade in the triple digits.

Question 5

John Quiggin, a professor at this Australian university called Bitcoin &#34;a pure bubble.&#34;&#10;A)University of Queensland.&#10;B)University of Melbourne.&#10;C)University of Sydney.&#10;D)University of New South Wales.

Accepted Answer

Professor John Quiggin at the University of Queensland called Bitcoin "a pure bubble." He made this statement due to the fact that Bitcoin has no intrinsic value or other backing.

Question 6

After the FBI shutdown the Silk Road in October of 2013, the value of a Bitcoin plunged to which of the following values after trading around $130 the day before?&#10;A)$65.&#10;B)$75.&#10;C)$85.&#10;D)$95.

Accepted Answer

After the FBI shutdown the Silk Road in October of 2013, the value of a Bitcoin plunged to $85 after trading around $130 the day before. While many predicted that this would have long-term repercussions for the currency, it rebounded not long afterwards.

Question 7

Which senior economist at a US regional Federal Reserve said that Bitcoin was &#34;an elegant solution to the problem of digital currency&#34;?&#10;A)Eric S. Rosengren.&#10;B)Francois Velde.&#10;C)William C. Dudley.&#10;D)Charles L. Evans.

Accepted Answer

Francois Velde, senior economist at a US regional Federal Reserve said that Bitcoin was "an elegant solution to the problem of digital currency." Several other economists have also voiced their support for Bitcoin as a digital currency.

Question 8

What is the average fee for a Bitcoin transaction?&#10;A)0.02%,&#10;B)0.20%.&#10;C)1.20%.&#10;D)2.20%.

Accepted Answer

The average fee for a Bitcoin transaction is 0.02%. Compared to the average fee for merchant services by major credit card companies, which is usually around 2%, Bitcoin transactions are a much cheaper alternative.

Question 9

Which of the following Nobel Prize winning economists wrote a piece in The New York Times speaking out against Bitcoin because it &#34;encourages hoarding&#34;?&#10;A)Alvin E. Roth.&#10;B)Robert Shiller.&#10;C)Paul Krugman.&#10;D)Gary S. Becker.

Accepted Answer

Paul Krugman wrote a piece in The New York Times speaking out against Bitcoin because it "encourages hoarding." In this piece, he discusses how the proper role of a currency is to facilitate transactions and argues that Bitcoin encourages its owners to hoard rather than use the currency.

Question 10

On November 19th, 2013, Bitcoin soared from $550 to which of the following values in a single day before plunging back down to under $600?&#10;A)$700.&#10;B)$800.&#10;C)$900.&#10;D)$1000.

Accepted Answer

On November 19th, 2013, Bitcoin soared from $550 to $900 in a single day before plunging back down to under $600. Spurred by a United States Senate Committee meeting on the legitimacy of Bitcoin, the currency was subject to a week of volatility.

Question 11

Many investors have shied away from Bitcoin due to concerns over which of the following?&#10;A)Volatility.&#10;B)Hyperinflation.&#10;C)Deflation.&#10;D)International Sanctions.

Accepted Answer

The answer of Many investors have shied away from Bitcoin...

Question 12

Over a five-day period, beginning on July 12th, 2010, the value of a single bitcoin increased by how much?&#10;A)300%.&#10;B)600%.&#10;C)900%.&#10;D)1200%.

Accepted Answer

The answer of Over a five-day period, beginning on July...

Question 13

On November 6th of 2010, the total value for all Bitcoin in currency reached what historic value?&#10;A)1 million USD.&#10;B)10 million USD.&#10;C)100 million USD.&#10;D)1 billion USD.

Accepted Answer

The answer of On November 6th of 2010, the total...

Question 14

After the Chinese government issued a stern warning against Bitcoin, the value for a single bitcoin fell from over 1,200USD to well below which of the following?&#10;A)$400.&#10;B)$600.&#10;C)$800.&#10;D)$1,000.

Accepted Answer

The answer of After the Chinese government issued a stern...

Question 15

Simon Johnson, a professor of entrepreneurship at this university, warned that Bitcoin would face &#34;big political backlash&#34; if it is widely adopted.&#10;A)MIT&#10;B)Yale&#10;C)University of Chicago&#10;D)Princeton

Accepted Answer

The answer of Simon Johnson, a professor of entrepreneurship at...

Deck 4: Economics