Understanding Bitcoin

What is a key difference between Bitcoin and traditional currencies?

• Bitcoin is created by solving mathematical problems.

• Bitcoin is backed by gold reserves.

• Bitcoin is issued by central banks.

• Bitcoin can be printed on demand.

How does Bitcoin help in reducing transaction costs?

• By increasing the transaction time.

• By offering government subsidies.

• By eliminating the need for financial institutions.

• By using a different currency exchange rate.

What is the maximum number of Bitcoins that can ever exist?

• 42 million

• 10 million

• 21 million

• 100 million

Why is Bitcoin considered speculative and risky?

• Because its future value is unpredictable.

• Because it is widely accepted by all businesses.

• Because its value is easy to calculate.

• Because it is backed by physical assets.

What percentage of small to medium businesses in the US accepted Bitcoin in 2020?

• 50%

• 20%

• 36%

• 75%