What is Bitcoin? Exam
In what year did bitcoin's price go above $1,000 for the first time?
2013
T/F: Bitcoin is completely anonymous, so anything that a person purchases or sells on bitcoin cannot be traced back to them.
FALSE
T/F: Because bitcoin has a volatile price and is a new technology for a lot of people, care and caution should be used before first buying or transacting in bitcoin.
True
How small can a bitcoin be divided into? Hint: Review how many satoshis equal one bitcoin
one one-hundred-millionth
What is a micro-payment?
Extremely small payments, less than a penny
Why is bitcoin called a cryptocurrency?
Because its transactions are verified using the principles of cryptography
T/F: Because bitcoin is used by people all over the world and it is not controlled by any government, it is a good investment idea.
FALSE
Let's say I buy 3 bitcoin for $1,000 each, and the next day, the price of one bitcoin goes to $800. How much money did I gain or lose, in terms of dollars?
Lost $600
Which one of the following is NOT a definition of bitcoin: a global ledger a digital bank a cryptocurrency a peer-to-peer network
a digital bank
Who verifies payments on the bitcoin network?
a peer-to-peer network
