What is Bitcoin? Exam

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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


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