Understanding Bitcoin

Bitcoin, created in 2009, is a decentralized digital currency without physical form. Transactions occur online, bypassing banks, and are often used for investment rather than purchases. Bitcoins are created through mining, a complex process involving computers solving equations. They can be acquired via exchanges, ATMs, or as rewards. Bitcoin's value is highly volatile, making it a risky investment. Despite its potential for profit, the unpredictable price changes pose significant risks for investors.

What is a key characteristic of Bitcoin that differentiates it from regular currencies?

• It is controlled by a central bank.

• It has a physical form like coins and bills.

• It was created in 2021.

• It is decentralized and not controlled by any central authority.

Who is the mysterious figure associated with the creation of Bitcoin?

• Vitalik Buterin

• Satoshi Nakamoto

• Charlie Lee

• Elon Musk

How do Bitcoin transactions occur?

• By mailing Bitcoin bills

• Via online transactions without the need for a bank

• Through physical exchange of coins

• Through government-regulated platforms

What is the primary reason people use Bitcoin?

• As an investment to potentially earn profits

• To avoid taxes

• For international travel

• To pay for everyday purchases

What is Bitcoin mining?

• A process of buying Bitcoins from a bank

• A method of solving mathematical problems to earn new Bitcoins

• A technique to convert Bitcoins into cash

• A way to store Bitcoins securely

Why has Bitcoin mining become more difficult?

• Due to government regulations

• Because of the increasing number of people trying to mine

• Because Bitcoin is running out

• Due to technological advancements

Which of the following is NOT a way to acquire Bitcoins?

• Buying them at a Bitcoin exchange

• Mining them

• Earning them through online games

• Printing them at home

What is the smallest unit of Bitcoin called?

• Satoshi

• Nakamoto

• Bit

• Coin

Why is Bitcoin considered a risky investment?

• Because it is illegal

• Due to its stable value

• Because it is backed by gold

• Because of its volatile price fluctuations

What was the approximate value of Bitcoin in December 2017?

• $20,000

• $29,000

• $6,900

• $5,800