Certified Bitcoin Professional Practice Exam

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What is the primary function of a Bitcoin payment processor?

To mine Bitcoin on behalf of users

To accept and forward Bitcoin payments

The primary function of a Bitcoin payment processor is to accept and forward Bitcoin payments. This involves enabling merchants to accept Bitcoin as a form of payment for goods and services, and then facilitating the transfer of the received Bitcoin to the merchant's wallet or converting it to fiat currency if preferred. Payment processors streamline the transaction process, allowing consumers to use their Bitcoin easily while providing the necessary infrastructure and tools for businesses to handle cryptocurrency payments securely.

This service is crucial as it reduces the complexity involved in handling Bitcoin transactions, thus encouraging more merchants to accept cryptocurrency. By efficiently processing Bitcoin payments, these processors help bridge the gap between the traditional financial system and the emerging cryptocurrency space, promoting wider adoption of Bitcoin as a means of payment.

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To provide loans in Bitcoin

To trade Bitcoin for cash

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