Crypto Quiz

10 Questions

What is cryptocurrency?

A digital currency not reliant on any central authority

What is the purpose of a digital ledger in cryptocurrency?

To verify transactions

What is the first and most well-known cryptocurrency?

Bitcoin

What are altcoins?

Alternative coins to Bitcoin

What are stablecoins?

Coins that are not volatile in value

What is mining in cryptocurrency?

The process of verifying transactions

What are initial coin offerings (ICOs)?

A means of raising funds for new cryptocurrency ventures

What is the main concern with cryptocurrency regulation?

Preventing illegal transactions

What is a criticism of cryptocurrency mining?

It generates electronic waste

How have aid agencies utilized cryptocurrency?

By accepting donations in cryptocurrency

Study Notes

Cryptocurrency is a digital currency not reliant on any central authority.
It is a decentralized system for verifying transactions.
Individual coin ownership records are stored in a digital ledger.
Cryptocurrencies are considered a distinct asset class.
The first cryptocurrency was Bitcoin, released in 2009.
Altcoins are alternative cryptocurrencies to Bitcoin.
Stablecoins aim to maintain a stable level of purchasing power.
Cryptocurrencies use various timestamping schemes to validate transactions.
Mining is the validation of transactions, and miners obtain new cryptocurrency as a reward.
The demand for graphics cards increased due to cryptocurrency mining in 2017.1. Nvidia prioritizes gamers.
Dedicated crypto-mining accelerator chips exist.
Cryptocurrency wallets store public and private keys.
Bitcoin is pseudonymous, not anonymous.
Block rewards incentivize miners.
Cryptocurrency exchanges allow trading between digital and fiat currencies.
Atomic swaps enable direct exchange between cryptocurrencies.
Initial coin offerings (ICOs) are a means of raising funds for new cryptocurrency ventures.
Cryptocurrency prices are highly volatile.
Governments are increasingly considering regulations for cryptocurrencies.1. The Biden administration issued an executive order in March 2022 to reconcile conflicting goals of preventing illegal cryptocurrency transactions while supporting development of cryptocurrencies.
South Africa is putting a regulatory timeline in place to produce a regulatory framework after several scams related to cryptocurrency.
El Salvador adopted Bitcoin as legal tender on 9 June 2021, the first country to do so.
The United Kingdom requires all cryptocurrency firms to register with the Financial Conduct Authority as of 10 January 2021.
In February 2023, the SEC ruled that cryptocurrency exchange Kraken's estimated $42 billion in staked assets globally operated as an illegal securities seller.
South Korea implemented new legislation to strengthen their oversight of digital assets in March 2021.
The legal status of cryptocurrencies varies substantially from country to country and is still undefined or changing in many of them.
Cryptocurrency networks display a lack of regulation that has been criticized as enabling criminals who seek to evade taxes and launder money.
Criminals laundered $8.6 billion worth of cryptocurrency in 2021, up by 30% from the previous year.
Almost 74% of ransomware revenue in 2021 involved cryptocurrency.1. Cryptocurrency has been used for money laundering, particularly through unregulated alternative exchanges.
Darknet markets have used cryptocurrencies for illegal transactions.
Cryptocurrency trading has been found to be rife with wash trading, which is illegal in some jurisdictions.
Cryptocurrencies have been used as a tool to evade economic sanctions.
Cryptocurrencies have been compared to Ponzi schemes, pyramid schemes, and economic bubbles.
Few banks offer virtual currency services themselves and can refuse to do business with virtual currency companies.
Mining for proof-of-work cryptocurrencies comes with a large carbon footprint and generates electronic waste.
Cryptocurrencies have been criticized for their lack of regulation and the difficulty of resolving legal disputes involving crypto assets.
Crypto-related suicides have been reported after cryptocurrency market crashes.
Aid agencies have started accepting donations in cryptocurrencies.