Quiz on Cryptocurrency

What is the name of the first and best-known cryptocurrency?

• Bitcoin ✓ (Correct answer)
• Litecoin
• Dogecoin
• Ripple

Source: Bitcoin launched in 2009 and remains the largest crypto by market value, the template every other coin followed.

What underlying technology records most cryptocurrency transactions?

• Blockchain ✓ (Correct answer)
• Spreadsheet
• Cloud server
• Mainframe

Source: A blockchain is a chain of cryptographically linked blocks that no single party can quietly rewrite.

Which pseudonymous figure is credited with creating Bitcoin?

• Satoshi Nakamoto ✓ (Correct answer)
• Vitalik Buterin
• Craig Wright
• Hal Finney

Source: Satoshi Nakamoto published the Bitcoin whitepaper in 2008, then vanished; their real identity is still unknown.

What term describes a digital wallet's secret string used to authorize spending?

• Private key ✓ (Correct answer)
• Public key
• Wallet name
• Seed bank

Source: Lose your private key and your coins are gone forever; there is no password-reset button in crypto.

Which crypto popularized smart contracts and decentralized apps?

• Ethereum ✓ (Correct answer)
• Bitcoin
• Tether
• Monero

Source: Ethereum let developers run code on the blockchain, spawning everything from NFTs to decentralized finance.

What are cryptocurrencies other than Bitcoin collectively called?

• Altcoins ✓ (Correct answer)
• Sidecoins
• Subcoins
• Minicoins

Source: "Altcoin" simply means alternative coin, covering thousands of Bitcoin alternatives.

What is a stablecoin designed to do?

• Track a stable asset ✓ (Correct answer)
• Maximize gains
• Mine faster
• Hide transactions

Source: Stablecoins like USDT peg their value to assets such as the US dollar to dodge crypto's wild swings.

What does the popular acronym HODL urge crypto holders to do?

• Hold long-term ✓ (Correct answer)
• Sell quickly
• Double bets
• Stake everything

Source: HODL began as a drunk typo for "hold" on a 2013 forum and became crypto's battle cry for not panic-selling.

What is the maximum number of bitcoins that will ever exist?

• 21 million ✓ (Correct answer)
• 18 million
• 50 million
• 100 million

Source: Bitcoin's code caps supply at 21 million, a built-in scarcity meant to mimic precious metals.

Which animal-themed coin started as a joke before exploding in value?

• Dogecoin ✓ (Correct answer)
• Litecoin
• Polkadot
• Solana

Source: Dogecoin began in 2013 as a meme featuring a Shiba Inu, then briefly hit a multi-billion-dollar market value.

What process do Bitcoin miners perform to validate transactions?

• Proof of work ✓ (Correct answer)
• Proof of stake
• Proof of burn
• Proof of space

Source: Proof of work has miners burn electricity solving puzzles; whoever wins adds the next block and earns the reward.

Roughly how often is the Bitcoin mining reward cut in half?

• Every 4 years ✓ (Correct answer)
• Every year
• Every 2 years
• Every 8 years

Source: The "halving" occurs about every four years, steadily slowing new supply until the 21-million cap is reached.

What is a 12-to-24-word backup that restores a crypto wallet called?

• Seed phrase ✓ (Correct answer)
• Hash code
• Block header
• Gas limit

Source: The seed phrase encodes your entire wallet; anyone who reads it can drain your funds, so it's never typed online.

What fee do Ethereum users pay to execute transactions?

• Gas ✓ (Correct answer)
• Toll
• Mint
• Spread

Source: "Gas" measures the computing effort a transaction needs; busy network moments can spike fees to absurd levels.

What does the acronym DeFi stand for?

• Decentralized finance ✓ (Correct answer)
• Default finance
• Deferred finance
• Defined finance

Source: DeFi rebuilds lending and trading without banks, using smart contracts that run automatically on a blockchain.

Which 2022 event saw a major "algorithmic" stablecoin collapse?

• TerraUSD crash ✓ (Correct answer)
• Mt. Gox hack
• Bitcoin halving
• Ethereum Merge

Source: TerraUSD lost its dollar peg in May 2022, wiping out tens of billions and dragging crypto markets down with it.

What did Ethereum's 2022 "Merge" change about the network?

• Switched to proof of stake ✓ (Correct answer)
• Doubled max supply
• Added Bitcoin support
• Removed smart contracts

Source: The Merge moved Ethereum from mining to staking, slashing its energy use by an estimated 99%.

Which country became the first to adopt Bitcoin as legal tender?

• El Salvador ✓ (Correct answer)
• Venezuela
• Panama
• Nigeria

Source: El Salvador made Bitcoin legal tender in 2021, even building a state wallet and buying coins for its treasury.

What is the smallest unit of a bitcoin called?

• Satoshi ✓ (Correct answer)
• Wei
• Gwei
• Bit

Source: One bitcoin splits into 100 million satoshis, named after its mysterious creator.

What 2010 purchase is famous as the first real-world Bitcoin transaction?

• Two pizzas ✓ (Correct answer)
• A used car
• A laptop
• A gold coin

Source: A programmer paid 10,000 BTC for two pizzas in 2010; that sum would later be worth hundreds of millions.