CBP Bitcoin Commerce and Ecosystem 2

Question 1

What is a Bitcoin payment processor primarily used for in e-commerce?

Accepted Answer

To convert Bitcoin payments into fiat currency for merchants

Answer

Bitcoin payment processors like BitPay or Coinbase Commerce convert customer Bitcoin payments into fiat currency, reducing volatility risk for merchants.

Question 2

Which of the following is a key advantage of Bitcoin for cross-border commerce?

Accepted Answer

It eliminates foreign exchange fees and banking intermediaries

Answer

Bitcoin allows direct peer-to-peer cross-border transfers without currency conversion fees or correspondent banking delays.

Question 3

What does 'zero-confirmation' (0-conf) mean in a Bitcoin transaction context?

Accepted Answer

The transaction has been broadcast but not yet included in a block

Answer

A zero-confirmation transaction has been broadcast to the mempool but has not yet been mined into a block, making it unconfirmed.

Question 4

A merchant accepting Bitcoin for a $50 item wants to minimize exposure to price swings. What is the best approach?

Accepted Answer

Immediately convert Bitcoin received to USD using a payment processor

Answer

Using a payment processor to auto-convert Bitcoin to fiat at time of sale eliminates volatility risk for the merchant.

Question 5

What is the role of a Bitcoin exchange in the ecosystem?

Accepted Answer

To provide a marketplace where Bitcoin can be bought and sold for fiat or other assets

Answer

Bitcoin exchanges provide liquidity and price discovery by matching buyers and sellers of Bitcoin against fiat currencies or other assets.

(CBP) Certified Bitcoin Professional Practice Test

(CBP) Certified Bitcoin Professional Practice Test

CBP Bitcoin Commerce and Ecosystem 2