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How Bitcoin Works - Time-Stamped Multiple Choice Test

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is Bitcoin primarily known as?

a)

A. A central bank currency

b)

B. A type of virtual currency

c)

C. A form of precious metal

d)

D. A paper-based currency

2.

What is a key benefit of Bitcoin transactions?

a)

High transaction fees

b)

Always requires a bank

c)

Maintains high anonymity

d)

Uses checks

3.

Who created Bitcoin?

a)

Elon Musk

b)

Jeff Bezos

c)

Satoshi Nakamoto

d)

Vitalik Buterin

4.

What do you need to store bitcoins?

a)

Piggy bank

b)

Bank account

c)

Bitcoin wallet

d)

Gold vault

5.

What is Bitcoin mining?

a)

Mining gold with machines

b)

Harvesting data for ads

c)

Generating new bitcoins via computing power

d)

A term for selling Bitcoin

6.

How is Bitcoin different from traditional currency?

a)

It's issued by the government

b)

It's paper-based

c)

It's decentralized

d)

It's printed by banks

7.

What network does Bitcoin use?

a)

Centralized bank network

b)

P2P network

8.

What happens when your wallet is lost and not backed up?

a)

Call Bitcoin hotline

b)

Bitcoins are refunded

c)

Bitcoins are lost forever

d)

Send a dispute form

9.

What is the blockchain?

a)

A. A type of cryptocurrency

b)

B. A public ledger of transactions

c)

C. A security system

d)

D. A coin printer

10.

How many total bitcoins will ever exist?

a)

10 million

b)

50 million

c)

Unlimited

d)

21 million

11.

When is the estimated year Bitcoin mining will stop?

a)

2050

b)

2140

c)

2030

d)

2220

12.

What is one downside of using an online wallet?

a)

Takes up too much space

b)

Easy to forget password

c)

Dependent on third-party security

d)

Requires fax access

13.

What’s one benefit of Bitcoin internationally?

a)

Free internet access

b)

No wire transfer fees

c)

Requires no password

d)

No taxes ever

14.

What does Bitcoin's value often resemble?

a)

Stable bonds

b)

Gold reserves

c)

Financial bubbles

d)

Credit score

15.

What was Silk Road?

a)

A. A Bitcoin exchange

b)

B. A government agency

c)

C. A black market site

d)

D. A cloud wallet

16.

Why do criminals use cryptocurrencies?

a)

For charity

b)

For fast donations

c)

For potential anonymity

d)

To get airline miles

17.

Why might Bitcoin be risky?

a)

It's too cheap

b)

Energy use is too low

c)

High price volatility

d)

It's always government-backed

18.

What kind of technology is Ethereum praised for?

a)

Blockchain

b)

Antivirus

c)

Email

d)

VPN

19.

What are 'smart contracts'?

a)

Intelligent legal agreements

b)

AI-generated blogs

c)

Programmable transactions on blockchain

d)

Cheap phone plans

20.

What environmental concern does Bitcoin pose?

a)

Water pollution

b)

Mining emissions

c)

Energy usage

d)

Radio waves