Question 1

Who regulates Bitcoin?
A)The Chinese government.
B)The United States government.
C)Its creator.
D)Nobody.

Accepted Answer

Nobody regulates Bitcoin. Unlike the United States dollar, which is controlled by the Treasury Department, there is no individual, group, or organization that regulates Bitcoin. Bitcoin is a digital, peer-to-peer currency, which means that all trades are made between two individuals without interference from outside influences.

Question 2

Which of the following is Bitcoin considered to be?
A)A peer-to-peer currency.
B)Fiat money.
C)Dollar-backed currency.
D)Gold-backed currency.

Accepted Answer

Bitcoin is considered to be a peer-to-peer currency. This means that when a transaction occurs, there is no central regulatory body, and the two individuals that are conducting the transaction pass the currency directly between one another.

Question 3

What is the name for .00000001BTC?
A)A nakamoto.
B)A satoshi.
C)A bit penny.
D)A bit dime.

Accepted Answer

A satoshi is the name for .00000001BTC. A bitcoin can be broken down into eight decimal places.

Question 4

What is the name of the public transaction log that shows all past Bitcoin transactions?
A)The Ledger.
B)The Bitcoin PTL.
C)The Blockchain.
D)The Bitcoin Protocol.

Accepted Answer

The Blockchain the name of the public transaction log that shows all past Bitcoin transactions. This ledger is public and shows every single Bitcoin transaction ever completed, along with the number of bitcoins transferred and the addresses of those who initiated the transaction.

Question 5

Bitcoin is most commonly used for which of the following?
A)International money transfers.
B)Money laundering.
C)Purchasing illegal drugs.
D)Retail purchases.

Accepted Answer

Bitcoin is most commonly used for international money transfers. Because the fee for Bitcoin transactions is minimal, it can be a very effective medium for money transfers.

Question 6

What is the name for the individuals who create bitcoins?
A)Miners.
B)Great Creators.
C)Hackers.
D)Bitcoin Army.

Accepted Answer

Miners is the name for individuals who create bitcoins. By solving complicated math problems that are used to verify Bitcoin transaction, these individuals are rewarded with new bitcoins.

Question 7

How do individuals create new bitcoins?
A)By finding bugs on the Bitcoin website.
B)By solving complex math problems.
C)By finding bugs in the Bitcoin blockchain.
D)By lending their computing power to Bitcoin.

Accepted Answer

Individuals create new bitcoins by solving complex math problems. While this often involves using their computing power to solve these problems, the process helps verify Bitcoin transactions to ensure that the bitcoins aren't spent twice.

Question 8

How can bitcoins be stored?
A)In a paper wallet.
B)In an offline hard drive.
C)In a digital wallet.
D)All of the above.

Accepted Answer

Bitcoins can be stored in a paper wallet, in an offline hard drive, or in a digital wallet. Due to security concerns about hackers stealing bitcoins, many choose to store their bitcoins in paper wallets that can be printed and stored, or in a hard drive that is disconnected from all networks.

Question 9

What is the name of the unit for 1,000,000 bitcoins?
A)A megabitcoin.
B)A Nakamoto.
C)A millabit.
D)None of the above.

Accepted Answer

A megabitcoin is the name of the unit for 1,000,000 bitcoins. Also referred to as a MBTC, this unit is rarely used because it is so large.

Question 10

Bitcoins can be sent to which of the following?
A)An email address.
B)A postal address.
C)A Bitcoin address.
D)Both A & C.

Accepted Answer

Bitcoins can be sent to a Bitcoin address. These addresses are unique and single-use, so after one is used for a transaction, you will have to create a new address in order to receive another payment.

Quiz 1: What Is Bitcoin

Who regulates Bitcoin?

Which of the following is Bitcoin considered to be?

What is the name for .00000001BTC?

What is the name of the public transaction log that shows all past Bitcoin transactions?

Bitcoin is most commonly used for which of the following?

What is the name for the individuals who create bitcoins?

How do individuals create new bitcoins?

How can bitcoins be stored?

What is the name of the unit for 1,000,000 bitcoins?

Bitcoins can be sent to which of the following?