Cryptocurrency MCQ Questions and Answers for Practice

1. All blocks contain a link to the previous block, except for

1. The first block.
2. Block number 24601.
3. The second block.
4. The third block.

2. How many servers are on a decentralized network?

1. 1
2. 2
3. None
4. All of the Above

3. In the future, Blockchain applications will include

1. Only transactions involving cryptocurrencies.
2. Only transactions between companies or government agencies.
3. Cryptocurrency transactions, transactions between governments, companies and consumers, voting, healthcare and many other applications.
4. Only transactions within the borders of 1 country.

4. The problem with traditional (non-digitized) ledgers is

1. Transparency as most people involved in a transaction dont have access to the ledger.
2. In most cases, there are no backups (or not enough backups) of the ledger.
3. Fees are usually much higher when using old school / non-digitized ledgers as banks often charge very high fees.
4. All of the above are correct.

5. What best describes a blockchain?

1. A distributed ledger on a peer to peer network
2. A Centralized Database
3. An Exchange
4. A type of Cryptocurrency

6. What does P2P stand for?

1. Peer to Peer
2. Product to Product
3. Password to Password
4. Penguin to Penguin

7. What is a node?

1. A computer connected to a blockchain network
2. A blockchain server
3. A type of cryptocurrency
4. An Exchange

8. What is the maximum amount of bitcoins that will ever be created?

1. Infinity, because there is no limit
2. 21 million
3. Nobody knows, because its created randomly
4. Bitcoin isnt real, so none will ever exist

9. What makes cryptocurrency secure?

1. Servers
2. Cryptographic Math
3. Government Banks
4. Insurance Companies

10. What was FIRST known bitcoin purchase, finally giving it a value?

1. Tacos
2. Airfare
3. Pizza
4. More Bitcoins

11. Where can you buy cryptocurrency?

1. Bitcoin ATM
2. An Exchange
3. Peer to Peer transaction
4. All of the Above

12. Where do you store your cryptocurrency?

1. Bank Account
2. Floppy Disk
3. Hardware/Software Wallet
4. In your pocket

13. Who started Bitcoin?

1. The International Monetary Fund
2. The Federal Reserve
3. Satoshi Nakamoto
4. The G8