Bitcoin Quiz

What is the purpose of Bitcoin mining?

• To prevent new transactions from being added to the blockchain

• To create physical bitcoins for circulation

• To validate and add new transactions to the blockchain, and release new bitcoins into circulation.

• To increase the value of existing bitcoins

Explain the concept of proof of work in Bitcoin mining.

• Miners solve complex mathematical puzzles to validate and secure transactions on the blockchain.

• Miners rely on luck to validate transactions

• Miners use physical labor to mine for bitcoins

• Miners create new bitcoins by solving puzzles

What is a block reward in the context of Bitcoin mining?

• The block reward is the penalty imposed on miners for attempting to manipulate the blockchain.

• The block reward is the amount of Bitcoin given to miners for successfully adding a new block to the blockchain.

• The block reward is the interest earned by miners for holding Bitcoin in their wallets.

• The block reward is the fee paid by users to have their transactions included in a block.

How does the process of Bitcoin mining contribute to the security of the network?

• By making it easier for an attacker to manipulate the transaction history

• By slowing down the transaction process

• By adding new blocks to the blockchain and making it more difficult for an attacker to manipulate the transaction history.

• By allowing unlimited access to the blockchain

What factors contribute to the volatility of Bitcoin's price?

• Market demand, supply, regulatory news, and investor sentiment

• Historical events, technological advancements, and demographic shifts

• Currency exchange rates, political stability, and global economic indicators

• Weather patterns, social media trends, and celebrity endorsements

How does market demand and supply affect the price of Bitcoin?

• By influencing the balance between buyers and sellers, leading to changes in the price based on the level of demand and supply.

• By the price of gold

• By the number of Bitcoin wallets created

• By the weather conditions affecting the mining process

What role do external events and news play in influencing the price of Bitcoin?

• External events and news have no impact on Bitcoin price

• Bitcoin price is determined solely by market demand and supply

• External events and news can influence the price of Bitcoin.

• Bitcoin price is only influenced by internal factors

How are Bitcoin transactions verified on the blockchain?

• Using a centralized authority to approve transactions

• Allowing anyone to make changes to the blockchain without verification

• Randomly selecting a node to verify the transactions

• Mining and solving complex mathematical puzzles

What is the role of miners in verifying Bitcoin transactions?

• Miners verify and confirm Bitcoin transactions by solving complex mathematical problems.

• Miners are the ones who decide which transactions are valid

• Miners are responsible for setting the value of Bitcoin

• Miners create new Bitcoins by solving puzzles

Explain the concept of consensus mechanism in Bitcoin transaction verification.

• Process of mining and solving complex mathematical puzzles to validate transactions

• Dependent on the weather conditions to confirm transactions

• Relying on random selection of individuals to validate transactions

• Using a centralized authority to verify transactions