Bitcoin Market Analysis Quiz

1. What is the market capitalization of Bitcoin as of February 2021?

• $200 billion
• $1,072.21 billion
• $500 billion
• $750 billion

2. What percentage growth did Bitcoin experience from 2012 to 2020?

• 300,000.00%
• 193,639.36%
• 150,000.00%
• 100,000.00%

3. Approximately how many Bitcoins are in circulation as of 2023?

• Approximately 13.7 million
• Approximately 10 million
• Approximately 5 million
• Approximately 21 million

4. What is the maximum number of Bitcoins that can ever be created?

• 25 million
• 30 million
• 21 million
• 18 million

5. Which off-chain scaling solution is being developed to reduce Bitcoin fees and transaction times?

• Optimistic Rollup
• Lightning Network
• Sidechain Solution
• Plasma Chain

6. On what date was the Bitcoin network officially launched?

• December 1, 2011
• January 3, 2009
• March 21, 2008
• February 14, 2010

7. When did Bitcoin achieve its all-time high exchange rate as of September 2018?

• November 25, 2018
• January 1, 2018
• September 5, 2018
• December 17, 2017

8. On average, how often is a new block discovered by Bitcoin miners?

• 10 minutes
• 15 minutes
• 30 minutes
• 5 minutes

9. What historical event is commemorated as Bitcoin Pizza Day?

• The day Laszlo Hanyecz bought two pizzas for 10,000 bitcoins.
• The day Bitcoin was created by Satoshi Nakamoto.
• The anniversary of the introduction of blockchain technology.
• The first public sale of cryptocurrencies.

10. How many new Bitcoins are created daily with the current block reward?

• 1.0
• 6.25
• 12.5
• 3.5

11. What secure hashing algorithm does Bitcoin use?

• MD5
• SHA 256
• BLAKE2
• SHA 1

12. What is the function of a nonce in the context of Bitcoin?

• A measure of Bitcoin`s market value over time.
• A type of cryptocurrency wallet.
• A value that miners change to find a valid block hash.
• A set of rules for validating transactions.

13. What does it imply about Bitcoin`s security that it consumes roughly 1% of the world’s energy?

• Bitcoin`s energy consumption has no impact on its security and can be ignored.
• Bitcoin is secure to the point that it would require approximately 1% of the entire world’s energy consumption to attack the network.
• High energy consumption indicates Bitcoin is mainly used for illegal activities.
• Bitcoin`s energy use reflects its inefficiency rather than its security strength.

14. What is a Merkle Root and its significance in Bitcoin?

• A Merkle Root is an algorithm for calculating block rewards in Bitcoin mining.
• A Merkle Root is the total number of transactions processed in Bitcoin.
• A Merkle Root is a type of digital wallet used for storing Bitcoin securely.
• A Merkle Root is a hash of all transaction hashes in a block, used to efficiently verify the integrity of the transactions in the block.

15. What are the two primary factors driving the bull market in Bitcoin?

• Rising inflation and increased mining difficulty
• The approval of spot ETFs and the upcoming halving event
• Government regulations and stock market crashes
• Increased retail investor interest and economic recession

16. What was the price of Bitcoin in late May 2024?

• $50,000
• Nearly $70,000
• $30,000
• $90,000

17. What is the projected price of Bitcoin by the end of 2024 and 2025?

• $77,000 by the end of 2024 and $123,000 by the end of 2025
• $30,000 by the end of 2024 and $45,000 by the end of 2025
• $50,000 by the end of 2024 and $75,000 by the end of 2025
• $100,000 by the end of 2024 and $150,000 by the end of 2025

18. Why do Bitcoin prices fluctuate significantly?

• Bitcoin`s prices are always stable due to demand and supply being constant.
• Bitcoin`s price never changes due to its high liquidity and large market.
• The price fluctuations are only caused by government regulations on cryptocurrencies.
• The highly volatile nature of Bitcoin, with a limited number of Bitcoins in circulation, leading to slower creation of new Bitcoins and thus affecting demand.

19. What are some potential use cases for Bitcoin beyond just transactions?

• Digital advertising campaigns, social media platforms, and influencer marketing.
• Voting mechanisms, wills and trusts, future markets, initiating trusts, crowdfunding, and decentralized domain names.
• Traditional banking services, personal loans, and cashback rewards.
• Streaming services, e-commerce platforms, and subscription models.

20. How can individuals purchase Bitcoin?

• By sending cash directly to friends
• By purchasing through government auctions
• Directly through various exchanges or online platforms
• Through traditional bank loans

21. What are some of the setbacks associated with Bitcoin investments?

• Lack of digital infrastructure and high transaction fees.
• The requirement for physical wallet storage and high energy costs.
• Complete dependence on government regulations and little community support.
• The highly volatile nature of blockchain and the limited extent of acceptance.

22. How does blockchain technology help mitigate security threats in Bitcoin?

• Through auditing and security testing.
• By limiting the number of users.
• By using traditional banking methods.
• Through increased transaction fees.

23. What is the governance structure of Bitcoin?

• Bitcoin is decentralized digital money, issued and managed without centralized authorities.
• Bitcoin is controlled by a single corporation that dictates its rules.
• Bitcoin is administered by a group of centralized governments.
• Bitcoin is governed by the Federal Reserve and international banks.

24. Why does Bitcoin mining involve high energy consumption?

• High energy consumption comes from a need for extensive cooling systems in mining rigs.
• Bitcoin mining requires a lot of lighting for the computers to function.
• The `proof-of-work` consensus algorithm requires significant computational power.
• High energy consumption is due to miners needing to solve simple math problems.

25. What are the three largest proof-of-work cryptocurrencies after Bitcoin?

• Stellar (XLM)
• Ripple (XRP)
• Litecoin (LTC)
• Cardano (ADA)

26. What does the halving event signify in Bitcoin?

• The halving event has no impact on Bitcoin`s market dynamics.
• The halving event unlocks more Bitcoins for miners each year.
• The halving event increases transaction fees for Bitcoin users.
• The halving event reduces the block reward and can affect Bitcoin’s supply and price.

27. What role do miners play in the Bitcoin network?

• Miners verify and generate new Bitcoins by solving computational problems and adding new blocks to the blockchain, receiving rewards in the form of new Bitcoins and transaction fees.
• Miners exclusively focus on increasing the Bitcoin price through speculation.
• Miners maintain the user accounts for all Bitcoin holders on the network.
• Miners create new exchanges that allow for trading of cryptocurrencies.

28. How does Bitcoin`s supply compare to that of traditional currencies?

• The supply of Bitcoins can increase indefinitely based on demand.
• The supply of Bitcoins is determined solely by market fluctuations.
• The supply of Bitcoins is controlled by central banks like traditional currencies.
• The supply of Bitcoins is capped at 21 million and is discovered at a limited and predictable rate system-wide.

29. How does governance differ between Bitcoin and other cryptocurrencies?

• Bitcoin is decentralized and not governed by any centralized authority, unlike some other cryptocurrencies which may have more centralized governance structures.
• Bitcoin uses a centralized governance model similar to that of traditional banks.
• Bitcoin is governed by a committee that makes decisions on protocol changes.
• Bitcoin follows a hierarchical governance structure managed by a single corporation.

30. What is the importance of spot ETF approvals for Bitcoin investing?

• Spot ETF approvals decrease demand for Bitcoin and its market presence.
• The approval of spot ETFs can increase the visibility and accessibility of Bitcoin, potentially leading to higher adoption and prices.
• Spot ETF approvals lead to increased regulation and restrictions on Bitcoin trading.
• Spot ETF approvals have no significant impact on Bitcoin`s market dynamics.