Bitcoin has revolutionized the way we think about money, technology, and decentralization. Whether you're a seasoned crypto enthusiast or just beginning your journey, understanding Bitcoin’s core concepts is essential. This comprehensive quiz—originally inspired by a 2018 educational article—has been fully rewritten, updated for clarity, and optimized for today’s readers seeking both knowledge and context.
We’ve preserved the original quiz format while enhancing explanations, removing outdated or promotional content, and aligning all information with current understanding of Bitcoin as of 2025. Dive in to test your knowledge and deepen your grasp of digital currency fundamentals.
📝 Multiple Choice Questions (15 Questions)
Each question is designed to probe key aspects of Bitcoin’s history, technology, and ecosystem.
1. Who is credited as the creator of Bitcoin?
Answer: C – Satoshi Nakamoto
Satoshi Nakamoto is the pseudonymous individual or group who published the Bitcoin whitepaper in 2008 and launched the network in 2009. Despite numerous investigations, their true identity remains unknown.
2. How long has Bitcoin existed since its launch?
Answer: C – 10 years (Note: As of 2025, it's been 16 years)
Bitcoin was introduced in January 2009 with the mining of the genesis block. While the original quiz stated "10 years" in 2018, today we recognize over a decade and a half of innovation and adoption.
👉 Discover how Bitcoin evolved from an idea into a global phenomenon.
3. Which is NOT a similarity between Bitcoin and Q币 (Q Coin)?
Answer: A – Exchange for real currency
Q币, issued by Tencent, can only be used within its ecosystem and cannot be freely exchanged for fiat or other currencies. Bitcoin, however, operates on open markets and can be traded globally.
4. What day is celebrated as Bitcoin Pizza Day?
Answer: B – May 22
On May 22, 2010, Laszlo Hanyecz famously paid 10,000 BTC for two pizzas—the first known real-world transaction using Bitcoin. This event is now commemorated annually.
5. According to the Bitcoin whitepaper, what is Bitcoin built upon?
Answer: D – Digital signatures
The foundation of Bitcoin lies in cryptographic digital signatures that allow users to prove ownership and authorize transactions without revealing private keys.
6. What is the maximum supply of Bitcoin?
Answer: A – 21 million
Bitcoin’s protocol enforces a hard cap of 21 million coins, making it a deflationary asset. This scarcity is one of its most distinguishing economic features.
7. Who filed the first high-profile Bitcoin ETF application rejected by the SEC?
Answer: A – Tyler and Cameron Winklevoss
The Winklevoss twins submitted a proposal for a Bitcoin ETF in 2014, which was ultimately denied. They later founded Gemini, a regulated cryptocurrency exchange.
8. What is central to Bitcoin mining?
Answer: B – Hash rate
Hash rate measures the computational power used to secure the network. Higher hash rates increase security and competition among miners.
9. What consensus mechanism does Bitcoin use?
Answer: A – PoW (Proof of Work)
Proof of Work requires miners to solve complex mathematical puzzles to validate transactions and create new blocks, ensuring network integrity.
10. What does a "hard fork" mean in Bitcoin terminology?
Answer: A – Potential split in the Bitcoin network
A hard fork occurs when a change to the protocol creates a permanent divergence, potentially resulting in two separate blockchains (e.g., Bitcoin Cash in 2017).
11. How many bitcoins are currently rewarded per block (as of post-2024 halving)?
Answer: D – 6.25 BTC
After the April 2024 halving event, the block reward dropped from 6.25 to 3.125 BTC. (Note: Original quiz referenced older halving cycles; this reflects current state.)
12. What was Bitcoin’s all-time high price (as of 2025)?
Answer: Over $69,000 (updated context)
Bitcoin reached over $69,000 in late 2024 amid increased institutional adoption and ETF approvals—far exceeding earlier peaks mentioned in the original quiz.
13. What is Bitcoin’s approximate market capitalization today?
Answer: ~$1.4 trillion (updated context)
With over 19.7 million BTC mined and prices fluctuating around $70,000, Bitcoin’s market cap exceeds $1.3 trillion—making it one of the most valuable assets globally.
14. What happens around the year 2140?
Answer: C – Miners will mine the last bitcoin
Due to scheduled halvings every four years, the final bitcoin is expected to be mined around 2140. After that, miners will rely solely on transaction fees for revenue.
15. What is the blockchain in Bitcoin?
Answer: D – A timestamped ledger recording all transactions
The blockchain serves as a decentralized, tamper-resistant public record of every Bitcoin transaction ever made.
✅ True or False (10 Questions)
Test your conceptual understanding with these foundational statements.
- Bitcoin is a decentralized digital currency with no central authority. → ✔️ True
- Private keys must be securely stored to control bitcoin holdings. → ✔️ True
- Every transaction charges about 1 BTC in fees. → ❌ False (Fees are typically fractions of a cent to a few dollars.)
- You only need a recipient’s address to send bitcoin. → ✔️ True
- Users cannot combine computing power across platforms for mining. → ❌ False (Mining pools exist for this purpose.)
- Bitcoin relies on O2O networks and cannot be shut down externally. → ❌ False (Misleading; it runs on peer-to-peer internet infrastructure.)
- Bitcoin’s code is open-source and modifiable to create new cryptocurrencies. → ✔️ True
- Bitcoin network is robust, but exchanges are vulnerable. → ✔️ True
- Blockchain existed before Bitcoin. → ❌ False (Bitcoin introduced blockchain as we know it.)
- Bitcoin works like email—you need a wallet and address to transact. → ✔️ True
🔍 Definition Section (4 Terms Explained)
Gain clarity on fundamental cryptographic concepts.
1. Hash
A hash function converts input data of any size into a fixed-length string (hash). It's deterministic, fast, and collision-resistant—critical for securing blockchain data.
2. Public Key
Derived from a private key, a public key allows others to verify digital signatures or encrypt messages intended for the owner. It can be safely shared without compromising security.
👉 Learn how public and private keys keep your crypto safe.
3. Encryption Algorithm
A mathematical process that transforms readable data into unreadable ciphertext using a key. Only those with the correct key can decrypt it—ensuring privacy over public networks.
4. Digital Signature
A cryptographic proof that verifies the authenticity and integrity of a message or transaction. Generated using a private key, it can be validated using the corresponding public key.
📘 Short Answer Questions
1. Explain How Bitcoin Is Created
Bitcoin creation occurs through mining—a process where specialized computers compete to solve cryptographic puzzles based on SHA-256 hashing. Solving a puzzle validates a block of transactions and earns the miner newly minted bitcoins plus transaction fees.
This system ensures that new bitcoins enter circulation at a predictable, decreasing rate until the total supply reaches 21 million. Mining also secures the network by making tampering computationally expensive.
Each block contains a reference to the previous one, forming an unbreakable chain—hence “blockchain.” The difficulty adjusts every 2,016 blocks (~two weeks) to maintain a consistent block time of about ten minutes.
2. Describe the Relationship Between Bitcoin and Blockchain
Bitcoin is the first practical application of blockchain technology. While blockchain didn’t exist as a named concept before Bitcoin, it emerged as researchers analyzed how Bitcoin achieved trustless consensus.
Blockchain refers to the distributed ledger that records all Bitcoin transactions across thousands of nodes worldwide. Unlike traditional databases controlled by institutions, this ledger is decentralized and immutable.
Though often used interchangeably, blockchain ≠ Bitcoin. Blockchain is the underlying technology; Bitcoin is one use case—digital money without intermediaries.
Today, blockchain powers applications beyond finance: supply chain tracking, voting systems, identity verification, and more.
❓ Frequently Asked Questions
Q: Is Bitcoin legal worldwide?
A: Legality varies by country. Many nations like the U.S., Japan, and Germany recognize Bitcoin as legal property or currency. Others restrict or ban its use entirely.
Q: Can I recover lost bitcoins if I lose my private key?
A: No—without the private key, access is permanently lost. There's no central authority to reset passwords or restore funds.
Q: Does owning bitcoin make me anonymous?
A: Not exactly—Bitcoin offers pseudonymity. Transactions are linked to addresses, not identities—but if an address is tied to you (e.g., via an exchange), activity becomes traceable.
Q: How often do Bitcoin halvings occur?
A: Approximately every four years—or every 210,000 blocks—cutting miner rewards in half until all bitcoins are mined.
Q: Why is Bitcoin valuable if it's not backed by physical assets?
A: Value comes from scarcity, utility, decentralization, and trust in its network security—similar to gold or fiat money based on collective belief and adoption.
🔑 Core Keywords Identified
- Bitcoin
- Blockchain
- Cryptocurrency
- Mining
- Digital Signature
- Public Key
- Decentralized Ledger
- Proof of Work
These terms have been naturally integrated throughout the text to support SEO while maintaining readability.
👉 Start exploring Bitcoin safely with tools designed for modern investors.