Cryptocurrency: Ownership and Transactions

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What is the main feature that allows ownership of cryptocurrency units to be proved exclusively cryptographically?

Pseudo-anonymity

Decentralization

Double spending attack protection

Blockchain technology (correct)

In the context of cryptocurrencies, what does pseudo-anonymity refer to?

Semi-anonymous transactions (correct)

Untraceable transactions

Transparency in transactions

Complete anonymity

Which problem does cryptocurrency solve that traditional government-backed currency cannot?

Protection against double spending attacks

Ensure complete anonymity in transactions

Facilitate cross-border transactions without any fees (correct)

Dependence on a central authority for validation

What characteristic of a cryptocurrency system prevents double spending attacks?

Blockchain technology (A) Signup and view all the answers

How does ownership of cryptographic units change in a cryptocurrency transaction?

By proving current ownership cryptographically (D) Signup and view all the answers

What is the primary advantage of using cryptocurrencies for value transfer over traditional methods?

Ability to move value across borders without converting currency or paying fees (C) Signup and view all the answers

What is the main reason money has value according to the text?

It is widely agreed upon by society (C) Signup and view all the answers

How is fiat money defined in the text?

Government-issued and not backed by a physical commodity (C) Signup and view all the answers

What characteristic defines cryptocurrency?

Digital, encrypted, and decentralized (A) Signup and view all the answers

What distinguishes cryptocurrency from fiat currency based on the text?

Decentralized ledger (A) Signup and view all the answers

In the context of cryptocurrencies, what role does a central authority play?

Achieving consensus on cryptocurrency's state (A) Signup and view all the answers

How do cryptocurrencies determine the circumstances of creating new units according to the text?

By achieving consensus among users (D) Signup and view all the answers

What problem does cryptocurrency solve that government-backed currency doesn't?

Decentralization without relying on a centralized third-party (B) Signup and view all the answers

In Paul Krugman's opinion, what question is commonly asked about cryptocurrency technology?

What unique problem does cryptocurrency solve that other technologies cannot? (A) Signup and view all the answers

What type of wallets are mentioned in the text as options for storing Bitcoin?

Desktop, Mobile, and Paper wallets (B) Signup and view all the answers

Which term best describes the concept of Bitcoin being exchanged directly between two parties without an intermediary?

Peer-to-peer (B) Signup and view all the answers

What is the primary role of altcoins in the world of cryptocurrencies?

Offering alternatives to Bitcoin with different features or mechanisms (D) Signup and view all the answers

Which of the following is NOT mentioned as an example of a Bitcoin wallet in the text?

Ethereum wallet (A) Signup and view all the answers