Intro to Cryptocurrency Comprehension Check

What is cryptocurrency?

• A type of digital money that exists only online

• A physical coin used for online purchases

• A form of government-issued paper money

• A type of video game currency

What is Bitcoin?

• It was the first digital currency created by a bank

• It is the first cryptocurrency to use blockchain technology

• It is the most expensive currency in the world

• It is the only cryptocurrency that exists

What does it mean for cryptocurrency to be decentralized?

• It is controlled by a single company

• It is stored in one central location

• It is managed by banks and governments

• It is not controlled by any single person, government, or organization

What is a blockchain?

• It is a type of password that protects your Bitcoin wallet

• It is a public digital ledger that records transactions

• It is a bank’s security system for online transactions

• It is a government database of cryptocurrency owners

What are blocks in a blockchain?

• They are physical storage devices used for crypto

• They are small parts of Bitcoin

• They are groups of recorded transactions added to the blockchain

• They are websites where cryptocurrency is traded

What is mining in cryptocurrency?

• It is a process where people dig underground for digital money

• It is a way of making Bitcoin by printing it like cash

• It is a process where powerful computers solve math problems to add blocks to the blockchain

• It is a term for buying and selling Bitcoin

Why do miners need to solve complex math problems when mining cryptocurrency?

• To create new digital wallets

• To verify transactions and secure the network

• To stop people from buying Bitcoin

• To change the value of cryptocurrency

What happens when a miner successfully adds a new block to the blockchain?

• They receive a reward in cryptocurrency

• They lose access to their Bitcoin wallet

• The price of Bitcoin automatically increases

• They take control of all Bitcoin transactions

What is halving?

• It doubles the amount of Bitcoin miners receive

• It cuts the mining reward in half, slowing down Bitcoin creation

• It reduces the value of Bitcoin every four years

• It erases half of all Bitcoin transactions

How does the entire process of mining and blockchain technology help keep cryptocurrency transactions secure?

• By allowing one company to verify every transaction

• By ensuring every transaction is recorded and verified by multiple computers

• By keeping all Bitcoin transactions private and hidden

• By using passwords that only Bitcoin miners know