Digital Currency and the Blockchain

Multiple Choice

Money in your APCard is an example of a digital currency.

• True

• False

Multiple Choice

E-Wallet is an example of digital currency.

• True

• False

Multiple Choice

Any money available online is e-money.

• True

• False

Multiple Choice

Common problem encountered by digital currency is _____.

• Fiat money

• Double spending

• Cryptocurrency

• Bad record-keeping

Multiple Choice

_____ solves double spending.

• Cryptocurrency

• Digital Currency

Multiple Choice

Miners are securing the integrity of the system and the value of the currency

• Built-in Scarcity May Support Value

• Loosening of Government Currency Monopolies

• Self-Interested, Self-Policing Communities

• Robust Privacy Protections

Multiple Choice

Offer a reliable means of exchange outside the direct control of national banks

• Built-in Scarcity May Support Value

• Loosening of Government Currency Monopolies

• Self-Interested, Self-Policing Communities

• Robust Privacy Protections

Multiple Choice

Many cryptocurrency users employ pseudonyms unconnected to any information, accounts, or stored data that could identify them

• Built-in Scarcity May Support Value

• Loosening of Government Currency Monopolies

• Self-Interested, Self-Policing Communities

• Robust Privacy Protections

Multiple Choice

Like precious metals, they may offer inflation protection

• Built-in Scarcity May Support Value

• Loosening of Government Currency Monopolies

• Self-Interested, Self-Policing Communities

• Robust Privacy Protections

Multiple Choice

Eliminate the need for a third-party payment processor

• Harder for Governments to Exact Financial Retribution

• Fewer Barriers and Costs to International Transactions

• Generally Cheaper Than Traditional Electronic Transactions

Multiple Choice

Governments cannot freeze or seize cryptocurrency accounts

• Harder for Governments to Exact Financial Retribution

• Fewer Barriers and Costs to International Transactions

• Generally Cheaper Than Traditional Electronic Transactions

Multiple Choice

Cryptocurrencies don’t treat international transactions any differently than domestic transactions

• Harder for Governments to Exact Financial Retribution

• Fewer Barriers and Costs to International Transactions

• Generally Cheaper Than Traditional Electronic Transactions

Multiple Choice

cryptocurrencies have relatively few outstanding units concentrated in a handful of individuals’ hands

• Lack of Regulation Facilitates Black Market Activity

• Potential for Tax Evasion in Some Jurisdictions

• Potential for Financial Loss Due to Data Loss

• Potential for High Price Volatility and Manipulation

Multiple Choice

Cryptocurrency users may not take the proper precautions

• Lack of Regulation Facilitates Black Market Activity

• Potential for Tax Evasion in Some Jurisdictions

• Potential for Financial Loss Due to Data Loss

• Potential for High Price Volatility and Manipulation

Multiple Choice

Many gray and black-market online transactions are denominated in Bitcoin and other cryptocurrencies

• Lack of Regulation Facilitates Black Market Activity

• Potential for Tax Evasion in Some Jurisdictions

• Potential for Financial Loss Due to Data Loss

• Potential for High Price Volatility and Manipulation

Multiple Choice

cryptocurrencies aren’t regulated by national governments and usually exist outside their direct control

• Lack of Regulation Facilitates Black Market Activity

• Potential for Tax Evasion in Some Jurisdictions

• Potential for Financial Loss Due to Data Loss

• Potential for High Price Volatility and Manipulation

Multiple Choice

Only the most popular cryptocurrencies have dedicated online exchanges that permit direct exchange for fiat currency

• Often Can’t Be Exchanged for Fiat Currency

• Limited to No Facility for Chargebacks or Refunds

• Adverse Environmental Impacts of Cryptocurrency Mining

Multiple Choice

Cryptocurrency users have no one to appeal to if they are cheated in a cryptocurrency transaction

• Often Can’t Be Exchanged for Fiat Currency

• Limited to No Facility for Chargebacks or Refunds

• Adverse Environmental Impacts of Cryptocurrency Mining

Multiple Choice

Due to the nature that miners will use a lot of processing powers.

• Often Can’t Be Exchanged for Fiat Currency

• Limited to No Facility for Chargebacks or Refunds

• Adverse Environmental Impacts of Cryptocurrency Mining

Multiple Choice

master ledger that records and stores all prior transactions and activity, validating ownership of all units of the currency at any given point in time

• Bitcoin

• Blockchain

• Mining

Multiple Choice

The world's first cryptocurrency

• Bitcoin

• Blockchain

• Mining

Multiple Choice

The record-keeping activity for cryptocurrency done by the communities who are indirect arbiters of the currencies’ value

• Bitcoin

• Blockchain

• Mining