Solutions Manual - Survey of Fintech, 1st Edition Evergreen Release
John Nofsinger & Smith
Chapter 1—Introduction to Disruptive Finance
Answers to End of Chapter Questions
1. Identify the characteristics of blockchain.
• LO 01-03
• Topic: Blockchain
• Business Competency: Knowledge Application
• Bloom’s: Level 2 Understand
• Difficulty: Medium 2
The key characteristics of blockchain include:
• Decentralized and distributed: Every blockchain is a distributed record-keeping system
stored across thousands of nodes and devices. The database operates without centralized
control.
• Immutable records: Information stored on the blockchain cannot be changed, altered, or
hacked.
• Transparency: The blockchain ledger can be viewed by anyone, and all transactions
recorded are entirely traceable and transparent.
• Real-time data transmission: Information analyzed, processed, and validated on a
distributed basis is stored on an immutable ledger and shared in real-time with all
network members.
• Consensus-driven: Blocks of new information are only added through group consensus
and secured with cryptography.
2. What are the characteristics of a good currency? Does bitcoin share these characteristics?
Why or why not?
• LO 01-05
• Topic: Currency
• Business Competency: Analytical Thinking
• Bloom’s: Level 5 Evaluate
• Difficulty: Hard 3
A good currency should have the following seven characteristics:
• Acceptability: Bitcoin is not universally accepted by retailers, requiring workarounds like
PayPal selling crypto to pay retailers in fiat.
• Portability: Bitcoin is electronically portable only.
• Durability: Bitcoin does not decay and theoretically persists over time.
• Divisibility: Bitcoin is very divisible.
• Homogeneity (Fungibility): Each bitcoin is the same (fungible).
• Recognizable: Bitcoin has verification processes to validate its authenticity.
• Stability: Bitcoin’s value versus the U.S. dollar has varied widely, showing high
volatility, which is inconsistent with currency stability.
1-1
©
,Bitcoin appears to fail in the two key areas of acceptability and stability as a good currency.
While it meets other characteristics like portability, durability, divisibility, homogeneity, and
recognizability, its limited universal acceptance and significant price volatility prevent it from
being classified as a stable currency. Cryptocurrency advocates, however, also believe a good
currency should have a limited amount to prevent devaluation by central banks, a characteristic
Bitcoin is designed to possess.
3. Investigate the price and volume of bitcoin on Yahoo! Finance
(https://finance.yahoo.com/quote/BTC-USD?p=BTC-USD). Examine the one- and six-month
charts. Comment on the trend and volatility of bitcoin’s price during this time period.
• LO 01-03
• Topic: Bitcoin Price and Volatility
• Business Competency: Knowledge Application
• Bloom’s: Level 4 Analyze
• Difficulty: Medium 2
One month price chart:
Yahoo! Finance
https://finance.yahoo.com/quote/BTC-USD/
Obtained July 12, 2025
1-2
©
,The one-month price chart shows that bitcoin’s trend has generally been up. The price at the
beginning of the month was approximately $106,000 and ended the month at about $117,000 for
a monthly return of over 10%. There is also some volatility as the price dropped to $101,000
before recovering.
Six-month price chart:
Yahoo! Finance
https://finance.yahoo.com/quote/BTC-USD/
Obtained July 12, 2025
The six-month chart also shows an upward trend, but includes much more volatility. The period
began with bitcoin’s price around $95,000. However, on two occasions, the price dropped below
$80,000 before finally increasing to around $117,000 by the end of the period.
4. Go to NFT trading exchange OpenSea (https://opensea.io/) and search for the trading of
“Bored Ape Yacht Club” NFTs. What is the current price for a Bored Ape Yacht Club non-
fungible token?
• LO 01-04
• Topic: NFTs
• Business Competency: Knowledge Application
• Bloom’s: Level 3 Apply
• Difficulty: Medium 2
On September 11, 2025, OpenSea showed the sales depicted below.
1-3
©
, The screenshot shows current Bored Ape Yacht Club NFTs for sale. For example, sad looking
#4306 shows that it is for sale for 9.2499 ETH. At this time, each ETH is valued at $4,435.03.
Interested people could make a bid anytime during the next 7 days. The last time it sold, it sold
for 9.20 BETH. Clicking on the Ape shows more details, like the details of its selling history.
5. Examine the statistics for Ethereum at https://www.blockchain.com/explorer/assets/eth .
A. What is the current price?
B. How many are circulating?
C. Examine the rapidly occurring transactions. What is a common range of transaction
values (Lower end to Higher end)?
• LO 01-05
• Topic: Ethereum
• Business Competency: Knowledge Application
• Bloom’s: Level 3 Apply
• Difficulty: Medium 2
A to C:
1-4
©
John Nofsinger & Smith
Chapter 1—Introduction to Disruptive Finance
Answers to End of Chapter Questions
1. Identify the characteristics of blockchain.
• LO 01-03
• Topic: Blockchain
• Business Competency: Knowledge Application
• Bloom’s: Level 2 Understand
• Difficulty: Medium 2
The key characteristics of blockchain include:
• Decentralized and distributed: Every blockchain is a distributed record-keeping system
stored across thousands of nodes and devices. The database operates without centralized
control.
• Immutable records: Information stored on the blockchain cannot be changed, altered, or
hacked.
• Transparency: The blockchain ledger can be viewed by anyone, and all transactions
recorded are entirely traceable and transparent.
• Real-time data transmission: Information analyzed, processed, and validated on a
distributed basis is stored on an immutable ledger and shared in real-time with all
network members.
• Consensus-driven: Blocks of new information are only added through group consensus
and secured with cryptography.
2. What are the characteristics of a good currency? Does bitcoin share these characteristics?
Why or why not?
• LO 01-05
• Topic: Currency
• Business Competency: Analytical Thinking
• Bloom’s: Level 5 Evaluate
• Difficulty: Hard 3
A good currency should have the following seven characteristics:
• Acceptability: Bitcoin is not universally accepted by retailers, requiring workarounds like
PayPal selling crypto to pay retailers in fiat.
• Portability: Bitcoin is electronically portable only.
• Durability: Bitcoin does not decay and theoretically persists over time.
• Divisibility: Bitcoin is very divisible.
• Homogeneity (Fungibility): Each bitcoin is the same (fungible).
• Recognizable: Bitcoin has verification processes to validate its authenticity.
• Stability: Bitcoin’s value versus the U.S. dollar has varied widely, showing high
volatility, which is inconsistent with currency stability.
1-1
©
,Bitcoin appears to fail in the two key areas of acceptability and stability as a good currency.
While it meets other characteristics like portability, durability, divisibility, homogeneity, and
recognizability, its limited universal acceptance and significant price volatility prevent it from
being classified as a stable currency. Cryptocurrency advocates, however, also believe a good
currency should have a limited amount to prevent devaluation by central banks, a characteristic
Bitcoin is designed to possess.
3. Investigate the price and volume of bitcoin on Yahoo! Finance
(https://finance.yahoo.com/quote/BTC-USD?p=BTC-USD). Examine the one- and six-month
charts. Comment on the trend and volatility of bitcoin’s price during this time period.
• LO 01-03
• Topic: Bitcoin Price and Volatility
• Business Competency: Knowledge Application
• Bloom’s: Level 4 Analyze
• Difficulty: Medium 2
One month price chart:
Yahoo! Finance
https://finance.yahoo.com/quote/BTC-USD/
Obtained July 12, 2025
1-2
©
,The one-month price chart shows that bitcoin’s trend has generally been up. The price at the
beginning of the month was approximately $106,000 and ended the month at about $117,000 for
a monthly return of over 10%. There is also some volatility as the price dropped to $101,000
before recovering.
Six-month price chart:
Yahoo! Finance
https://finance.yahoo.com/quote/BTC-USD/
Obtained July 12, 2025
The six-month chart also shows an upward trend, but includes much more volatility. The period
began with bitcoin’s price around $95,000. However, on two occasions, the price dropped below
$80,000 before finally increasing to around $117,000 by the end of the period.
4. Go to NFT trading exchange OpenSea (https://opensea.io/) and search for the trading of
“Bored Ape Yacht Club” NFTs. What is the current price for a Bored Ape Yacht Club non-
fungible token?
• LO 01-04
• Topic: NFTs
• Business Competency: Knowledge Application
• Bloom’s: Level 3 Apply
• Difficulty: Medium 2
On September 11, 2025, OpenSea showed the sales depicted below.
1-3
©
, The screenshot shows current Bored Ape Yacht Club NFTs for sale. For example, sad looking
#4306 shows that it is for sale for 9.2499 ETH. At this time, each ETH is valued at $4,435.03.
Interested people could make a bid anytime during the next 7 days. The last time it sold, it sold
for 9.20 BETH. Clicking on the Ape shows more details, like the details of its selling history.
5. Examine the statistics for Ethereum at https://www.blockchain.com/explorer/assets/eth .
A. What is the current price?
B. How many are circulating?
C. Examine the rapidly occurring transactions. What is a common range of transaction
values (Lower end to Higher end)?
• LO 01-05
• Topic: Ethereum
• Business Competency: Knowledge Application
• Bloom’s: Level 3 Apply
• Difficulty: Medium 2
A to C:
1-4
©
