Cryptocurrency

Why can the value of cryptocurrencies be extremely volatile?

• They are regulated by banks

• They are backed by gold

• They are not backed by any government or physical commodity

• They are used only in one country

What is one potential benefit of cryptocurrencies?

• Slow international transfers

• High transaction fees

• Fast and inexpensive international money transfers

• Limited accessibility

What is a significant risk associated with cryptocurrencies?

• High regulation

• Stable value

• Lack of anonymity

• Susceptibility to hacking

What should you consider before investing in cryptocurrencies?

• Following trends blindly

• Doing thorough research and understanding the risks

• Ignoring the risks

• Investing all your savings

Bitcoin is an example

• money

• share

• cryptocurrency

• debenture

Which of the following is true of cryptocurrency?

• Stable investment form

• Only purchasable to businesses

• Decentralised investment form

• Is a physical asset

What is a common use of blockchain technology in cryptocurrencies?

• A) Centralized control

• B) Secure and transparent transactions

• C) Physical currency exchange

• D) Government regulation

Which of the following is a feature of most cryptocurrencies?

• A) Unlimited supply

• B) Centralized authority

• C) Anonymity

• D) Physical form

What is a potential environmental concern related to cryptocurrencies?

• A) Low energy consumption

• B) High energy consumption

• C) Renewable energy usage

• D) No energy usage

Which of the following best describes a 'wallet' in the context of cryptocurrencies?

• A) A physical storage device

• B) A digital tool for storing and managing cryptocurrencies

• C) A bank account

• D) A government-issued ID