Cryptocurrency Drills for Beginners

Bitcoins and Cryptocurrency

Self-paced lesson today!

Multiple Choice

Based on the video you just watched

In early January of 2011, the value of one bitcoin was $0.32. A decade later in early January of 2021:

• the value of bitcoin increased to nearly $2.00

• the value of bitcoin increased to nearly $2,000

• the value of bitcoin increased to nearly $42,000

• the value of bitcoin increased to nearly $92,000

Multiple Choice

Based on the video you just watched

Bitcoin and the US dollar are both forms of money that can be used to transfer value & buy or sell things. Yet, unlike the US dollar:

• 
  

  Bitcoin’s value is not enforced by the government

• 
  

  Bitcoin can only be bought and sold outside the US

• Bitcoin can only exist is a verified bank account

• Bitcoin’s value can never decrease

Multiple Choice

Based on the video you just watched

Unlike US dollars, which can keep getting printed by the government, bitcoin is limited, and by 2041:

• there will be a total of 11 million bitcoin

• there will be a total of 21 million bitcoin

• there will be a total of 31 million bitcoin

• there will be a total of 41 million bitcoin

Multiple Choice

Based on the video you just watched

Which major company announced plans to allow bitcoin to be used as a payment method starting in early 2021?

• Square

• American Express

• JP Morgan Chase

• Paypal

Click here to read, there will be two questions that follow.

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​Check out this article

The dollars and coins we use in the U.S. are useful as a medium of exchange for goods and services because the government issues it, everyone accepts it as currency and most people believe it has and will retain value. Read the article about fiat money up to “The pros and cons of fiat money.”

Open Ended

1. Based on the article that you read, what is fiat money?

Open Ended

2. Based on the article that you read, why does fiat money have value?

​Check out this InfoGraphic

Digital currency as an idea began as early as 1983, even before the word cryptocurrency existed.  Use the timeline to answer the questions about the history of cryptocurrency.

Click here, to view the infographic and there will be questions that follow.

Open Ended

What event was cited as the inspiration for the creation of Bitcoin?

Open Ended

2. What event made cryptocurrency more appealing to mainstream banks and large companies?

Open Ended

3. What is one thing that you learned from this timeline that you didn’t already know?  Was there anything that surprised you?

Multiple Choice

1. The purpose of blockchain technology is to…

• 1. Reduce the environmental impact of completing cryptocurrency transactions

• Verify transactions and help keep the ledger free of tampering

• 1. Make the cryptocurrency network operate faster

• 1. Lower the fees per transactions between individuals

Multiple Choice

Where does the value of fiat currency come from?

• 1. Its value comes from trust in the issuing party

• 1. Its value comes from the price that someone is willing to pay for a commodity like gold

• 1. Its value is set when the currency is created and does not change over time

• 1. Its value comes from comparison to other similar currencies

Multiple Choice

1. Which of the following is a drawback of Bitcoin?

• 1. It is decentralized and not backed by a central authority

• 1. Its price is volatile

• 1. There is a high chance of fraud

• 1. It takes a long time to complete a transaction

Multiple Choice

What is the main purpose of Bitcoin?

• To control the flow of money by governments

• To create a decentralized global network

• To replace physical currency with digital currency

• To facilitate illegal activities

Multiple Choice

What is the advantage of using Bitcoin for international transactions?

• Lower fees and faster processing

• Higher security and privacy

• No need for currency exchange

• Ability to bypass government regulations

Multiple Choice

Why do cryptocurrencies have value?

• Because they are easily copied and replicated

• Because they are scarce and decentralized

• Because they are controlled by governments

• Because they are backed by physical assets

Multiple Choice

What is the main advantage of cryptocurrencies for people in unstable economies?

• Ability to evade government regulations

• Protection against inflation

• Financial freedom and control

• Access to international markets

Multiple Choice

Cryptocurrency is...

• virtual money

• enigmatic money

• money on a bank account

• pocketmoney

Multiple Choice

Bitcoin is...

• money in Bangladesh

• money in the casino

• the first cryptocurrency

• the first bank check

Multiple Choice

Bitcoin was launched in

• 2018

• 2015

• 2011

• 2009

Multiple Choice

The creator of Bitcoin is

• Bill Gates

• Satoshi Nakamoto

• Steve Jobs

• Mark Zuckerberg

Multiple Choice

Cryptocurrency needs

• blockchain technology

• tax evasion

• Euro implementation

• fair trade

Multiple Choice

A blockchain is

• a chain of lego blocks

• a National Bank database

• a Chinese currency

• a database with information on transactions

Multiple Choice

Bitcoin is legal ONLY in ONE of these South American countries

• Colombia

• Ecuador

• Bolivia

• Chile

Multiple Choice

Where do you store your cryptocurrency?

• Bank account

• Floppy Disk

• Digital Wallet

• In your pocket

Multiple Choice

What does P2P stand for?

• Peer to Peer

• Product to Product

• Password to Password

• Penguin to Penguin

Multiple Choice

Ethereum is a type of cryptocurrency.

• True

• False

• Partially true

• None of the above

Multiple Choice

What is necessary for Bitcoin?

• bank

• internet

• government

• oxygen

Multiple Choice

True or False: Digital currency is regulated

• True

• False

Multiple Choice

True or False: Cryptocurrency is regulated

• True

• False

Multiple Choice

Where does crypto currency get its name?

• Cryptonyms

• Cryptogram

• Cryptologic

• Cryptography

Multiple Choice

What is the definition of a cryptocurrency?

• Paper Money

• A Digital Asset

• Coins

• None of the Above

Multiple Choice

The price of Bitcoin behaves according to ...

• Offer and demand

• The central bank's decision

• The owner's decision

• News

Multiple Choice

Which of the following is popularly used for storing bitcoins?

• pocket

• wallet

• box

• stack