Understanding Cryptocurrencies and Blockchain

What was the primary form of trade before the introduction of currency?

• Gold only

• Barter system

• Credit system

• Digital transactions

What does the term 'pound' originally refer to in British currency?

• A pound of silver

• A pound of gold

• A pound of paper

• A pound of copper

What is the primary feature of cryptocurrency?

• It uses physical coins

• It is backed by gold

• It is controlled by a central bank

• It is entirely virtual

What does decentralization in cryptocurrencies mean?

• No single point of control

• Controlled by one entity

• Transactions are not recorded

• Governed by a central bank

Why might someone prefer cryptocurrencies over traditional banks?

• Easier paperwork

• Government regulation

• Cryptocurrencies offer interest

• Faster transactions globally

What is the purpose of mining in cryptocurrency?

• Securing transactions

• Regulating exchange rates

• Designing new blockchains

• Creating new coins

Why are cryptocurrencies considered secure?

• Because of decentralized ledgers

• Due to physical safeguards

• All transactions are public

• They are backed by governments

What does the blockchain ledger help prevent?

• Physical theft

• Transaction speed

• Fraudulent activities

• Government interference

How is blockchain organized?

• In a linear fashion

• Randomly

• Into interconnected webs

• Into sequential blocks

What is a major reason people invest in cryptocurrencies?

• Fixed interest rates

• Guaranteed returns

• Potential increase in value

• Government support