Announcing a Return to our Roots: The All-New Bitcoin Magazine

Bitcoin & Digital Currency Quiz: Intermediate Level. Part Two of Three

by

         Bitcoin & Digital Currency Quiz: Intermediate Level. Part Two of Three

This is the second part of the three part series involving bitcoin and the world of digital currencies as an informal method to gauge where you might be in the new quickly evolving world. If you missed the beginner level quiz, you may refer to it here:

begin

This intermediate level quiz is geared more towards the investment side of bitcoin. Once the reader understands the principles for each of the questions and answers below, one might feel more comfortable owning bitcoin and setting one’s expectations correctly. Many wise investors have purchased a small quantity of bitcoin as a means of understanding it better.

This is likely a better strategy than Warren Buffett’s explanation of what bitcoin is to a national audience. To many, Warren sounded like somebody had explained it to him like he was five – and then he repeated that level of understanding that many considered embarrassingly over-simplified and narrow. He referred to bitcoin as a mirage or just a ‘checking account’ to transfer money. In his defense, nobody would argue that bitcoin is complex. It is groundbreaking and represents a paradigm shift in how we think of money. Which is why we need some way to gauge our understanding and loosely validate we are on track for our understanding.

The following quiz is designed to give you a better understanding and discover those areas you might find useful to research a bit more for your personal knowledge. The answers and links for followup for the questions follow the quiz. Simply scroll down further. Of course memorizing the answers for these 20 questions won’t be helpful, but understanding “the why” of each answer may be considered a helpful guide to further your understanding.

Remember this quiz is not scientific and should be completed in the spirit of fun, not seriousness. If you didn’t “ace” the beginner quiz, don’t sweat it. Only the nerdiest bitcoiners would obsess about the extreme detail of each answer rather than remembering that the beginner quiz was written as a guide for newbies and contained generalized principles for beginners rather than forensic detail some of our “gifted” forum posters tend to obsess over. Click the “Beginner” icon to return to the beginner level quiz if desired.

A reminder of bitcoin knowledge levels:

Level 0– Newbie: You barely know how to spell bitcoin. We all have to start somewhere. This is where it all begins.

begin

Level 1- Beginner: You scored at least 18 correct on the first quiz. Don’t get cocky – This doesn’t mean you are ready to invest in bitcoin yet. If you are not ready for the Intermediate level quiz, click the button above to take the beginner quiz first.

Level 2 Intermediate: If you can get 90% score on the intermediate level quiz, you might know enough to put a few bucks into investing in bitcoin.

Intermediate Level Quiz:

1. Which of the following companies is NOT a bitcoin payment processor?

A Bitfloor

B Coinbase

C PayPal

D Bitpay

E BitPOS

2.Which of the following does NOT track the intraday price movement of bitcoin?

A Moody Clark Charts

B BitcoinWisdom

C Coinmarketcap

D Bitwatch

E Winklevoss twin ticker

3.What is the longest widely reported time of somebody living strictly on bitcoin?

A One Week

B Three days

C 100 + Days

D Seven years

E 17 days

4. Mike Caldwell of Utah is widely recognized as creating the firstphysical bitcoin. It was called:

A Casascius coin

B Custudious coin

C Caldwell Coin

D Bitcorn

E Physabit

5.Which bitcoin exchange’s location is not currently widely known?

A Btc-e

B Cryptsy

C BTer

D Mt Gox

E Atlantis

6. Which person is NOT a current Bitcoin Foundation board member?

A Elizabeth Ploshay

B Charley Shrem

C Bobby Lee

D Gavin Andresen

E Peter Vessenes

7. Which Bitcoin miner manufacturer hasn’t been in trouble in the news (yet)?

A Butterfly Labs

B Advanced Mining Technology

C HashFast

D Spondoolies-Tech

E Cointerra

8.Which is NOT a widely accepted benefit of keeping bitcoins in cold storage?

A Hackers will not be able to steal them

B It requires less electricity

C You can access them from your cellphone when you need to spend them.

D They are easier to insure for large bitcoin companies like Circle.com

E You don’t absolutely need to memorize a password for paper wallets

9.Which is the LEAST LIKELY benefit of bitcoin over gold?

A History of value

B Portability

C Divisibility

D Fungibility

E Predictable supply

10.If Jack has 5 bitcoins, and Diane has 25 litecoins, How many darkcoins could they have bought for Christmas 2013?

A 409,203

B 5,430

C 402,024,244

D 944,203.244

E None of the above

11.Which big US company did not decide to accept bitcoin by June 20, 2014?

A Dish Network

B Ebay

C Overstock.com

D Virgin Galatic

E Tiger Direct

12.Who is the inventor of litecoin?

A Bobby Lee

B Bruce Lee

C Charlie Lee

D General Lee

E Satoshi Nakamoto

13. Which of the following is NOT a next generation digital currency?

A HashCash

B Ethereum

C Maidcoin

D Colored Coins

E Bitshares

14. When was bitcoin finally released for production?

A January 2009

B November 2008

C May 2010

D April 2013

E It hasn’t been released for production

15. Transactions from payment processors that are reconciled within that payment network itself between customer funds and not directly on the block chains are referred to as:

A Chain-gain transactions

B Chain-linked omissions

C Block-head transactions

D Off-block chain transactions

E None of the above

16. Only about seven bitcoin transactions can be completed in one second. Why?

A This was the threshold voted by the Bitcoin Foundation

B Excessive bitcoin mining chatter

C Synchronization between the major seven bitcoin exchanges

D NSA Imposed limit for money laundering analysis

E Artificial limit to prevent block chain ballooning

17. Mt Gox customers lost money. Which of the following troubles did Mt Gox have?

A Lax documentation for “Know Your Customer” laws.

B No Independent auditing

C Bad computer code transaction with Bitcoin “transaction malleability”

D Withdraw limits and delays converting back into cash

E All of the above

18.What is the real name of the bitcoin promoter also known as “Bitcoin Jesus”?

A Erik Voorhees

B Andre Antonopoulos

C Gavin Andresen

D Satoshi Nakamoto

E Roger Ver

19.Which federal agency has issued an official opinion or guidance about bitcoin?

A FinCEN

B IRS

C Security and Exchange Commission

D Commodity Futures Trading Commission

E All of the above

20.Which bitcoin mining pool pushed over 51% of mining activity in June 2014?

A Ghash.IO

B BTC Guild

C Slush

D Newcrest

E Barrick

Scroll down for answers when ready. No Peeking!

Answers:

1 c http://www.businessinsider.com/ebay-is-considering-integrating-bitcoin-into-paypal-2014-5

2 a,e http://www.coindesk.com/winklevoss-price-index-makes-debut-bloomberg/

3 c http://www.theguardian.com/travel/2013/nov/01/bitcoin-currency-for-travellers

4 a https://en.bitcoin.it/wiki/Casascius_physical_bitcoins

5 a http://www.cryptocoinsnews.com/news/btc-e-trustworthy-or-recipe-for-disaster/2014/03/29

6 b https://bitcoinfoundation.org/about/board/

7 d https://coinreport.net/lawsuit-mining-hardware-company-amt/

http://upstart.bizjournals.com/money/loot/2014/04/09/butterfly-labs-bitcoin-lawsuit.html?page=all

http://www.extremetech.com/uncategorized/173772-bitcoin-asic-manufacturer-hashfast-facing-lawsuits-over-alleged-false-advertising-fluctuating-bitcoin-prices

http://www.coindesk.com/cointerra-tackles-backlog-200-refund-requests-complaints-mount/

8 c http://bitzuma.com/posts/a-gentle-introduction-to-bitcoin-cold-storage/

9 a http://www.pbs.org/wgbh/nova/ancient/history-money.html

10 e http://wiki.darkcoin.eu/wiki/Price_history

11 b http://www.cnbc.com/id/101734293

12 c http://en.wikipedia.org/wiki/Litecoin

13 a http://en.wikipedia.org/wiki/Hashcash

14 e https://bitcoin.org/en/version-history

15 d http://www.coindesk.com/block-chain-transactions-bad-bitcoin/

16 e https://en.bitcoin.it/wiki/Scalability

17 e http://www.wired.com/2014/03/bitcoin-exchange/

18 e http://www.washingtonpost.com/business/bitcoin-jesus-promises-a-virtual-paradise/2014/06/19/c050eb38-f59a-11e3-a606-946fd632f9f1_story.html

19 e http://www.washingtonpost.com/news/morning-mix/wp/2014/03/20/sec-gets-on-the-bitcoin-investigation-bandwagon/

http://www.washingtonpost.com/news/morning-mix/wp/2014/03/20/sec-gets-on-the-bitcoin-investigation-bandwagon/

http://www.bloomberg.com/news/2014-03-25/bitcoin-is-property-not-currency-in-tax-system-irs-says.html

http://www.mondaq.com/unitedstates/x/292844/Financial+Services/FinCEN+Issues+Additional+Clarifications+Regarding+Bitcoin+And+Other+Convertible+Virtual+Currency+Activities

20 a Http://www.cryptocoinsnews.com/news/bitcoin-mining-pool-ghash-io-is-unapologetic-risk-theoretical-51-attack/2014/06/12

Recommended

Ten Years Later, a Reflection on Bitcoin’s Genesis and Satoshi’s Timing

Rather than focusing simply on what the genesis block is, today is a day to reflect on what the genesis block represents.

Colin Harper

Op Ed: From Gray To Black and White: Traditional Regulations Come to Crypto

For the crypto industry, recent developments — at both the federal and international levels — signal that the time for plausible deniability or unregulated freedom is coming to an end and more traditional regulations are moving to the forefront.

Courtney Rogers Perrin and Joshua Lewis

Bitcoin Price Analysis: Blowing Through Support Levels on the Way to $3,000

Bitcoin continues to tumble lower and lower as it struggles to claim any footing in the market. It’s down almost 50% in three weeks and it’s showing very little sign of stopping. It’s currently clutching onto the $3,500 values but it doesn’t look like it can hold on much longer.

Bitcoin Schmitcoin

Op Ed: SEC’s Latest Declaration Creates Legal Minefield for Digital Assets

This broad, authoritative declaration is not unexpected, as, to date, the SEC has stated that all digital assets — regardless of whether they function as alt coins or utility tokens — are securities at least initially and, thus, subject to its jurisdiction.

Huhnsik Chung and Nicholas Secara