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Q1. Which of the following best describes bitcoin?

Answer: A. Bitcoin is a decentralized digital currency that was created by Satoshi Nakamoto in 2008. Anyone with an Internet connection can either send or receive it as a form of payment, but it can also be used as a store of value. It is the world’s first-ever cryptocurrency.

Q2. Which of the following is the simplest way to describe how Bitcoin works?

Answer: C. The Bitcoin network allows users to send and receive bitcoins in a peer-to-peer manner and without any central authority involved. These transactions are verified by nodes and are recorded as blocks on the blockchain. Miners compete to append these blocks and are given rewards if successful

Q3. How does blockchain technology secure bitcoin transactions?

Answer: B. Bitcoin transactions are recorded as a chain of blocks, with each block containing a collection of valid bitcoin transactions and a hash of the previous block up to the genesis block in the chain.

Q4. What is the main benefit of mining and the PoW system to the Bitcoin network?

Answer: D. PoW, alongside the chaining of blocks, makes modifications of the blockchain extremely hard – hence, making the Bitcoin network secure and less prone to malicious attacks.

Q5. Which of the following products provide long-time bitcoin investors with amazing rewards?

Answer: D. All of the above

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