Skip to content
Finance Lessons

Bitcoin

Final Exam: The Bitcoin Gauntlet

A graded, locked capstone exam — 26 one-shot questions across every Bitcoin lesson: what Bitcoin is, the ledger and mining, proof-of-work, the 21M cap and halvings, keys and wallets, transactions and fees, full nodes, and the Lightning Network.

16 min Updated Jun 2, 2026

This is the part where the safety nets come down. No pretests, no warm-up analogies, no “guess before reading” — just the course, asking whether any of it stuck. Everything you need, the previous eight lessons already taught you. Read each option twice; the trap is usually the one that’s 90% right.

Warning:

How this exam works

This is a graded exam. Questions come one at a time. Once you submit an answer it is final — there is no going back, no second try, and a wrong answer simply fails that question. Your score stays hidden until the end, where you need 70% to pass. Read every option twice before you commit.

Question 1 of 26

A friend insists 'Bitcoin is totally anonymous — nobody can ever know it's me.' What is the precise correction?

Select an answer to continue.

Course Recap

Big picture

The complete Bitcoin mental model

  • Bitcoin, end to end
    • What Bitcoin is
      • No central issuer, genesis 2009
      • Solves digital double-spending
      • Pseudonymous, not anonymous
      • 1 BTC = 100,000,000 satoshis, divisible
    • Ledger & mining
      • ~10-min blocks, mempool of pending txs
      • Users sign txs, miners select & order
      • Header: prev hash, Merkle root, nonce, target
      • Subsidy + fees pay the miner
      • Difficulty retargets every 2016 blocks
    • Proof-of-work
      • Grind nonce, hash below target
      • Hard to produce, trivial to verify
      • Heaviest-work chain wins, orphans return
      • 51% can reorg/censor, cannot forge or mint
    • Supply & halvings
      • 21M hard cap
      • Subsidy halves every 210,000 blocks
      • 50 → 25 → 12.5 → 6.25 → 3.125
      • Disinflationary; ~2140 fees only
    • Keys & wallets
      • Private → public → address (secp256k1)
      • Signatures prove ownership, hide the key
      • Seed phrase backs up all keys
      • Not your keys, not your coins
    • Transactions & fees
      • UTXO model, inputs + outputs + change
      • Fee = inputs − outputs, paid to miner
      • Priced by size (sat/vByte), not amount
      • Confirmations, RBF / CPFP to unstick
    • Nodes & verification
      • Full node validates every rule
      • Rejects invalid blocks, even from miners
      • Nodes verify, miners produce
      • SPV trusts nodes; more nodes = resilience
    • Lightning Network
      • Layer 2: open + close are on-chain
      • Off-chain balance updates, instant & cheap
      • Non-custodial, cheating is penalized
      • HTLC routing is atomic; needs liquidity
Eight lessons, one structure: what Bitcoin is, the ledger and mining, the work that secures it, the fixed supply, the keys you control, the transactions you build, the nodes that verify, and the layer on top.

Key Takeaways

Success:

What to remember

  • Bitcoin is pseudonymous money with no issuer — it solved digital double-spending in 2009 by ordering every transaction in one public ledger, and it’s divisible down to 100 million satoshis per coin.
  • Mining is a verifiable lottery — miners grind the nonce until the header hashes below target, the heaviest-work chain wins, and difficulty retargets every 2016 blocks to hold the ~10-minute pace. A 51% majority can reorg and censor, but can never forge signatures or mint beyond schedule.
  • The supply is fixed at 21 million — the subsidy halves every 210,000 blocks (50 → 25 → 12.5 → 6.25 …), making Bitcoin disinflationary; around 2140 it hits zero and miners live on fees, but mining never stops.
  • You control coins through keys, not files — private → public → address is one-way; the address is safe to share, the seed phrase never is, and losing it loses the coins forever. Not your keys, not your coins.
  • Transactions are UTXOs with a fee priced by size — inputs minus outputs is the miner’s fee in sat/vByte, change comes back to you, and confirmations (≈6) plus RBF/CPFP govern settlement and stuck payments.
  • Full nodes verify; Lightning scales — a node rejects any invalid block even from a miner, while Lightning settles instant, near-free off-chain payments between two on-chain transactions, non-custodial and anchored to the base chain.

Mark lesson as complete