Question 1

In December 2013, officials in this European nation arrested two men on suspicions that they had generated counterfeit Bitcoin worth nearly $1 million.&#10;A)France.&#10;B)Bulgaria.&#10;C)Ukraine.&#10;D)Germany.

Accepted Answer

In December 2013, officials in Germany arrested two men on suspicions that they had generated counterfeit Bitcoin worth nearly $1 million. The individuals are suspected of using new software to create the fake bitcoins.

Question 2

Which of the following online marketplaces for illicit goods and services recently shut down after thieves stole more than 5,000BTC from the website?&#10;A)The Silk Road.&#10;B)Sheep Marketplace.&#10;C)Black Market Underground.&#10;D)Darknet.

Accepted Answer

Sheep Marketplace recently shut down after thieves stole more than 5,000BTC from the website. The website announced that they would be closing down after the theft, and users began to take it upon themselves to track the thieves.

Question 3

In July 2011, the website for this eWallet provider went down and announced that nearly 80,000BTC had disappeared from its coffers.&#10;A)MyBitcoin.&#10;B)Coinbase.&#10;C)Crypto Street.&#10;D)Wollit.

Accepted Answer

In July 2011, the website for MyBitcoin went down and announced that nearly 80,000BTC had disappeared from its coffers. Most suspect that the service was a scam perpetrated by the creators of the website rather than outside thieves.

Question 4

Several highly respected figures, ranging from Alan Greenspan to Chinese officials, have issued warnings about Bitcoin, citing which of the following risks?&#10;A)Lack of intrinsic value.&#10;B)Inflation.&#10;C)Deflation.&#10;D)None of the above.

Accepted Answer

Several highly respected figures, ranging from Alan Greenspan to Chinese officials, have issued warnings about Bitcoin, citing its lack of intrinsic value. Others, however, have countered that Bitcoin does have value, using various explanations such as its usefulness for transactions.

Question 5

How long did it take the SEC to open an investigation into a purported Ponzi scheme that took nearly 500,000BTC from its investors?&#10;A)Two weeks.&#10;B)One month.&#10;C)Two months.&#10;D)Three months.

Accepted Answer

It took the SEC roughly one month to open an investigation into a purported Ponzi scheme that took nearly 500,000BTC from its investors. The operation, called Bitcoin Savings & Trust, promised investors a ridiculous seven percent weekly return.

Question 6

After Chinese officials issued a warning against Bitcoin, the Central Bank of this European nation followed suit, citing several risks associated with the digital currency.&#10;A)France.&#10;B)Germany.&#10;C)United Kingdom.&#10;D)Spain.

Accepted Answer

After Chinese officials issued a warning against Bitcoin, the Central Bank of France followed suit, citing several risks associated with the digital currency. They stated that their citizens should be worried about inflation and speculation.

Question 7

In 2012, which of the following webhosting companies was hacked, resulting in a theft of nearly 45,000BTC?&#10;A)A Small Orange.&#10;B)Dreamhost.&#10;C)Linode.&#10;D)Bluehost.

Accepted Answer

In 2012, Linode was hacked, resulting in a theft of nearly 45,000BTC. An employee was suspected of gaining administrative access and stealing the bitcoins from a popular trading platform, Bitcoinica.

Question 8

In March 2013, this bureau of the United States government established guidelines for digital currencies.&#10;A)Financial Crimes Enforcement Network.&#10;B)Federal Bureau of Investigations.&#10;C)Crime Enforcement and Financial Crimes Bureau.&#10;D)Organized Crime Enforcement Bureau.

Accepted Answer

In March 2013, the Financial Crimes Enforcement Network established guidelines for digital currencies. They also added that miners, who generate Bitcoin for income, might be subject to taxation.

Question 9

The Department of Financial Services in this state recently held public hearings into regulations and possible guidelines for Bitcoin.&#10;A)California.&#10;B)Illinois.&#10;C)New York.&#10;D)Massachusetts.

Accepted Answer

The Department of Financial Services in New York recently held public hearings into regulations and possible guidelines for Bitcoin. They also cited concerns over the use of Bitcoin for criminal activities.

Question 10

In April of 2013, which of the following electronic sports companies was accused of hijacking nearly 15,000 computers in order to mine bitcoins?&#10;A)EA Sports.&#10;B)Twitch.&#10;C)Dreamhack.&#10;D)E-Sports Entertainment.

Accepted Answer

In April of 2013, E-Sports Entertainment was accused of hijacking nearly 15,000 computers in order to mine bitcoins. The company later settled the case and agreed to pay a large fine.

Deck 6: Limitations