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Cryptocurrency

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

Satoshi Nakamoto created this cryptocurrency

a)

Ethereum

b)

Bitcoin

c)

Litecoin

d)

XRP

2.

Bitcoin was launched in

a)

2018

b)

2015

c)

2011

d)

2009

3.

A blockchain is secured by

a)

PIN code

b)

'hash' code

c)

password

d)

login

4.
Bitcoin derives value through which method?
a)
Collapse of national banks
b)
Insider dealing
c)
Scarcity
d)
ETF trading
5.
The computers that process transactions for the bitcoin network are commonly called
a)
GPU
b)
Bitcoin Foundation Member Units
c)
Miners
d)
Truckers
6.
What is the name of the general ledger that tracks all bitcoin transactions?
a)
The Block Chain
b)
The Gox Chain
c)
Ledger Link
d)
Satoshi Square
7.

What is a fiat currency?

a)

Currency backed by a gold standard

b)

A currency used to purchase a car

c)

A currency backed by a physical commodity

d)

A currency that is declared a currency by the government, although not backed by a physical commodity

8.

What does the block in the blockchain consist of?

a)

Transaction data

b)

A Hash point

c)

A Timestamp

d)

all of these

9.

How many Bitcoins will

there ever be?

a)

21 million in 2140

b)

21 million in 2020

c)

14 million 2015

d)

23 million in 2140

10.

How does one acquire

bitcoins?

a)

As payment for goods or

services.

b)

Purchase bitcoins at a

Bitcoin exchange.

c)

Exchange bitcoins with

someone near you.

d)

Earn bitcoins through

competitive bitcoin mining.

e)

all of the above

11.

What is necessary for Bitcoin?

a)

bank

b)

internet

c)

government

d)

oxygen

12.

Cryptocurrencies are decentralized digital currencies secured with cryptography.

a)

True

b)

False

13.

Censorship resistant means...

a)

you can't say derogatory or negative things about it.

b)

the government can't send bank wires through it.

c)

that no one, including banks or governments, can block you from sending or receiving bitcoins.

d)

that no one, with the exception of banks or governments, can block you from sending or receiving bitcoins.

14.

Bitcoin wallets are used to protect and access your money.

a)

True

b)

False

15.

A wallet stores the information necessary to handle your bitcoins. Wallets are often described as a place to hold or store digital currency.

a)

True

b)

False

16.

The U.S. Department of the Treasury produces cryptocurrency.

a)

True

b)

False

17.

Cryptocurrency is backed by a commodity such as gold or silver

a)

True

b)

Falso

18.

Bitcoin is often recognized as the first decentralized cryptocurrency

a)

True

b)

False

19.

Miners earn cryptocurrency by using computers to solve complex mathematical problems to create new blocks for the ledger.

a)

True

b)

False

20.

Like paper money, cryptocurrency is also available in a physical form.

a)

True

b)

False

21.

Cryptocurrency mining requires a large amount of computing power, and therefore electricity

a)

True

b)

False

22.

The value of cryptocurrency can fluctuate greatly, making it a risky investment.

a)

True

b)

False

23.

Bitcoin, Ethereum, and Dogecoin are examples of cryptocurrency.

a)

True

b)

False

24.

Money launderers, terrorists, and computer hackers use cryptocurrency to help conceal their identities during financial transactions.

a)

Fact

b)

Fiction

25.

The value of each type of cryptocurrency depends on supply and demand.

a)

True

b)

False

26.

Where does the value of fiat currency come from?

a)

Its value comes from trust in the issuing party

b)

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

c)

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

d)

Its value comes from companrison to other similar currencies.

27.
  1. The purpose of blockchain technology is to…


a)
  1. Reduce the environmental impact of completing cryptocurrency transactions

b)
  1. Verify transactions and help keep the ledger free of tampering

c)
  1. Make the cryptocurrency network operate faster

d)
  1. Lower the fees per transactions between individuals

28.
  1. Which of the following is a drawback of Bitcoin?

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

b)
  1. Its price is volatile

c)
  1. There is a high chance of fraud

d)
  1. It takes a long time to complete a transaction

29.
  1. Ethereum was created …

a)
  1. To make cryptocurrency transactions more accessible to the general public

b)
  1. To fix the problem of cryptocurrency volatility

c)
  1. To be a medium of executing smart contracts

d)
  1. To be more environmentally friendly than other established cryptocurrencies

30.

Investing involves____________and___________, wheras speculation involves_________ and _______________.

a)

short-term goals, lower risk; long-term goals, higher risk

b)

long-term goals, lower risk; short-term goals, higher risk

c)

short-term goals, higher risk; long-term goals, lower risk

d)

long-term goals, higher risk; short-term goals, lower risk