The Economics of Bitcoin: Gambling

The Economics of Bitcoin: Gambling

Assessment

Interactive Video

Business

7th - 12th Grade

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the nature of Bitcoin and cryptocurrencies as a negative sum game, likening them to gambling due to their lack of intrinsic value generation. It presents a hypothetical scenario to illustrate how Bitcoin's market dynamics work, emphasizing the risks involved. The video concludes by advising viewers to be cautious with cryptocurrency investments, highlighting the importance of understanding the market before investing.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What characteristic makes a transaction a gamble according to the video?

A positive expected return

A guaranteed profit

A neutral expected return

A negative expected return

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the hypothetical scenario, what is required to keep Bitcoin's price increasing?

Reducing the number of investors

Increasing the number of investors or their willingness to pay more

Decreasing the value of Bitcoin

Increasing the supply of Bitcoin

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the video describe the market for Bitcoin compared to companies like Amazon or Apple?

Bitcoin is less risky than Amazon or Apple

Bitcoin has a stable market like Amazon or Apple

Bitcoin relies on new investors unlike Amazon or Apple

Bitcoin generates value like Amazon or Apple

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key factor that makes cryptocurrencies a negative sum market?

The increasing supply of Bitcoin

The decreasing demand for Bitcoin

The high costs of electricity and exchange fees

The stable value of Bitcoin

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What advice does the video give regarding investing in cryptocurrencies?

Invest without any research

Follow the advice of YouTubers

Invest as much as possible

Invest only if you understand the market