Certified Bitcoin Professional Practice Exam

Which statement accurately describes the authority over the price of Bitcoin?

1. No organization has authority over the price of Bitcoin.

2. The price of Bitcoin is controlled by the Bitcoin Foundation.

3. Government regulations dictate Bitcoin pricing.

4. Central banks determine the price of Bitcoin.

The correct answer is: No organization has authority over the price of Bitcoin.

The statement that accurately describes the authority over the price of Bitcoin is that no organization has authority over it. Bitcoin operates on a decentralized network, meaning that no single entity, organization, or government has control over its pricing. The price of Bitcoin is determined by supply and demand dynamics in the open market, influenced by various factors such as trading volume, investor sentiment, and macroeconomic trends, rather than any central authority imposing pricing or control. In contrast to this, the other options imply a centralized control over Bitcoin’s pricing, which is not the case. The Bitcoin Foundation, while it supports the Bitcoin ecosystem, does not have the authority to influence Bitcoin's price directly or indirectly. Similarly, while government regulations may impact how Bitcoin is traded, they do not dictate its price; instead, regulations aim to facilitate or restrict usage and trading methods. Central banks also do not determine Bitcoin prices, as Bitcoin exists outside of traditional financial systems. Their influence is more on fiat currencies, and they do not have jurisdiction over an independent cryptocurrency like Bitcoin.