Question 1

Crpytocurrencies are based on:

Accepted Answer

Cryptocurrencies operate on decentralized networks using blockchain technology, which is essentially a distributed ledger enforced by a disparate network of computers. These systems are governed by computer algorithms that manage the creation of new units and verify the transactions.

Question 2

Which of the following is not an example of a real world cryptocurrency?

Accepted Answer

PC Coin is not a real-world cryptocurrency. Litecoin, Coinye, and Ripple are all examples of cryptocurrencies that have been developed and used in various capacities within the digital currency space.

Question 3

Since cryptocurrencies require intense computing power, it benefits from:

Accepted Answer

Cryptocurrencies require intense computing power for mining, which consumes a lot of electricity. Therefore, areas with cheap electricity are more beneficial for cryptocurrency mining operations as they can significantly reduce operational costs.

Question 4

Which function of money do cryptocurrencies do least well in attaining?

Accepted Answer

The answer of Which function of money do cryptocurrencies do...

Question 5

Which of these is not a characteristic of blockchain technology?

Accepted Answer

Blockchain technology is known for its enhanced security and decentralized nature, which means it is not controlled by a single entity and is spread across multiple computers (nodes). However, it is not easily accessible by all due to the technical knowledge required to access and use blockchain technology effectively.

Question 6

Cryptocurrencies are often used for:

Accepted Answer

Tax evasion is a common use of cryptocurrencies, as they allow for anonymous transactions that can be difficult to trace.

Question 7

Cryptocurrencies are an example of:

Accepted Answer

The answer of Cryptocurrencies are an example of:
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Question 8

As of 2021, cryptocurrencies are:

Accepted Answer

Cryptocurrencies are typically produced by private entities or groups of individuals, not by central banks, governments, or commercial banks. They use decentralized control as opposed to centralized digital currency and central banking systems.

Question 9

The future of cryptocurrencies in our economy:

Accepted Answer

Central banks around the world are actively researching and investigating the potential impacts and uses of cryptocurrencies within the economy. This includes exploring the development of central bank digital currencies (CBDCs) and understanding the regulatory implications of cryptocurrencies.

Quiz 12: Cryptocurrencies