Bitcoin - simple explanation (w/video)

What is bitcoin?

• A cryptocurrency

• A digital currency

• A form of barter system

• A type of physical currency

Who proposed the system of currency that solved the problems associated with traditional payment systems?

• Stephen Hawking

• Satoshi Nakamoto

• Stephen Nakamoto

• Satoshi Hawking

What problem did Satoshi Nakamoto's proposed system aim to solve?

• Double spending problem

• Exchange rate problem

• Inflation problem

• Interest rate problem

How does the proposed system ensure the security of transactions?

• By involving multiple banks

• By having all users record transactions simultaneously

• By recording transactions in a central ledger

• By relying on the trust of users

What impact has bitcoin had on people's lives?

• No impact at all

• Negative impact only

• Positive impact only

• Both positive and negative impacts

What is a concern regarding the limited amount of bitcoins in circulation?

• It may lead to inflation

• It may cause problems in the future

• It may result in deflation

• It may lead to currency devaluation

Who left a paper proposing the new currency system on a cryptography blog?

• Satoshi Nakamoto

• Stephen Hawking

• Satoshi Hawking

• Stephen Nakamoto

What is the main advantage of using bitcoin for transactions?

• Dependence on banks

• Centralized control

• Faster transactions

• Higher transaction fees

What is the name of the problem where one tries to prove they have paid for something without a middleman vouching for them?

• No spending problem

• Double spending problem

• Single spending problem

• Triple spending problem

What is the role of banks and credit card companies in traditional payment systems?

• They ensure anonymity in transactions

• They take a cut of the transaction

• They eliminate the need for trust

• They record transactions in a decentralized ledger