Quick questions,
My bottom paint is peeling...in sheets. It seems to be bubbling up and coming off all together. The primer is not bubbling and looks to be good. Is the boat safe to put in the water to test the engines? or will this make the problem worse?

The boat does not have bottom paint on it, it is painted with the same boat as the freeboard and top side. I'm not sure what kind it is though. Whats the best way to go about fixing this?

its most likely a prep issue or mis use of one of the products. You can put the boat in for testing but eventually it will all need to be sanded back to where the problem does not exist and be re done.

+1 If your lucky most of it will come off over time and save work having to strip it off. Do you know why the bottom was painted to begin with?

the whole boat was painted about 8 years ago by a shop that I am not sure of with and unknown paint. It's pretty scratch resistant stuff, I took a chip to a paint shop and they told me it was a one part paint. He sanded it lightly and somehow he could tell.

Is the boat safe to take on the water for a little bit, like an afternoon? There is a total of about 4 sqft of just primer area.

You should be fine using it. I wouldn't leave it in the water over night and inspect the bottom every time you pull it out. It's not catastrophic but I would fix it sometime soon.