CBP Bitcoin Transactions and Wallets

Question 1

What is the primary function of a Bitcoin wallet?

Accepted Answer

To store, send, and receive Bitcoin

Answer

To mine new Bitcoins

Answer

To convert Bitcoin to fiat currency

Answer

To track Bitcoin prices

Question 2

Which component is essential for signing Bitcoin transactions?

Accepted Answer

Private key

Answer

Public key

Answer

Blockchain ledger

Answer

Transaction fee

Question 3

What determines the speed of a Bitcoin transaction confirmation?

Accepted Answer

The transaction fee

Answer

The Bitcoin price

Answer

The wallet type

Answer

The Bitcoin halving schedule

Question 4

Which of the following is a key difference between a hot wallet and a cold wallet?

Accepted Answer

Hot wallets are internet-connected, while cold wallets are offline

Answer

Cold wallets can only store Ethereum

Answer

Hot wallets do not require private keys

Answer

Cold wallets can be accessed from any device

Question 5

What happens if a Bitcoin user loses access to their private key?

Accepted Answer

The Bitcoin is permanently lost

Answer

The Bitcoin can be recovered using the public key

Answer

The Bitcoin is returned to the network

Answer

The wallet provider can reset the key

Question 6

Which factor makes Bitcoin transactions irreversible?

Accepted Answer

Transactions are recorded on a decentralized blockchain and cannot be changed

Answer

The transaction fee is too high

Answer

The government enforces irreversibility

Answer

Bitcoin transactions are insured