BF160 Extra Credit

What was the primary reason gold was selected as currency throughout history?

• Governments decreed it to be so.

• It was the only metal available at the time.

• It has unique features such as durability and divisibility.

• It was abundant and easy to find.

What significant change did the Nixon Shock bring to the global financial system?

• It marked the beginning of the Bretton Woods system.

• It introduced the gold standard.

• It ended the convertibility of the US dollar into gold.

• It established Bitcoin as a global currency.

What makes Bitcoin different from traditional fiat currencies?

• It can be created out of thin air by central banks.

• It is controlled by a single central authority.

• It is backed by gold.

• It is a digital currency that cannot be created out of thin air.

How does the decentralized nature of Bitcoin's blockchain technology impact its security?

• It makes it easier to hack.

• It requires third-party intermediaries for transactions.

• It eliminates a single point of failure, making it more secure.

• It makes transactions reversible.

What potential societal change could Bitcoin and blockchain technology bring about?

• It could reinforce the current power structures in finance.

• It could lead to a decrease in digital transactions.

• It could provide financial services to the unbanked population.

• It could make physical currencies more popular.