How Well Do You Really Understand Bitcoin?

How Well Do You Really Understand Bitcoin?

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Bitcoin is the most intriguing new financial instrument of the decade. The value of bitcoin has skyrocketed in 2017, from less than $1,000 to more than $17,000 per "coin." It was an early implementation of a technology called a blockchain, a database network that records financial transactions independent of any central bank, and it could replace your banker and broker within a decade.

Bitcoin has no physical form. So how is it created? Each bitcoin is the answer to a puzzle for which there are only 21 million valid answers. So far, fewer than 17 million have been discovered. Thus, while there is a strict limit to the number of bitcoins that can exist, new bitcoins are being discovered each day, in a process called bitcoin mining. And because it's the answer to an encryption puzzle, bitcoin is called a cryptocurrency.

Each cryptocurrency is traded in its own general ledger or blockchain. They have names such as Ethereum, Dash, Monero and Tron. Some have been created for specific purposes; Ripple, for example, is designed for international trading of goods and services. Each has its own blockchain software.

Confused? Hopefully our quiz can help you better understand this burgeoning investment. Let's get started:
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