Cryptocurrency Concept Check

Front

What is fiat money?

Back

Money that has value because the government has ordered that it is an acceptable means to pay debts.

Front

How can one acquire bitcoins?

Back

1. As payment for goods or services. 2. Purchase bitcoins at a Bitcoin exchange. 3. Exchange bitcoins with someone near you. 4. Earn bitcoins through competitive bitcoin mining. 5. All of the above.

Front

What is the maximum amount of bitcoins that will ever be created?

Back

21 million.

Front

How does cryptocurrency differ from the U.S. dollar?

Back

Cryptocurrency value is not enforced by the government.

Front

What does decentralized mean in the context of cryptocurrency?

Back

It means there is no central point of the network; it is spread over a series of users.

Front

What is cryptocurrency?

Back

A digital or virtual currency that uses cryptography for security and operates independently of a central authority.

Front

What is blockchain technology?

Back

A decentralized digital ledger that records all transactions across a network of computers.

Front

What is the role of miners in cryptocurrency?

Back

Miners validate transactions and add them to the blockchain, earning cryptocurrency as a reward.

Front

What is a Bitcoin wallet?

Back

A digital wallet used to store, send, and receive bitcoins.

Front

What is the significance of the 21 million cap on bitcoins?

Back

It creates scarcity, which can influence the value of bitcoin over time.