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Quiz about Cryptocurrencies for Kids
Quiz about Cryptocurrencies for Kids

Cryptocurrencies for Kids! Trivia Quiz


Have you got money stuffed under your mattress? Tired of loose change weighing down your pockets? Never fear! There is a new way to pay!

A multiple-choice quiz by AcrylicInk. Estimated time: 3 mins.
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Author
AcrylicInk
Time
3 mins
Type
Multiple Choice
Quiz #
394,673
Updated
Dec 03 21
# Qns
10
Difficulty
Easy
Avg Score
8 / 10
Plays
643
Awards
Top 20% Quiz
Last 3 plays: Linda_Arizona (9/10), colbymanram (10/10), Guest 172 (8/10).
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Question 1 of 10
1. What is cryptocurrency? Hint


Question 2 of 10
2. Cryptocurrency needed to be stored in a bank. True or false?


Question 3 of 10
3. Cryptocurrencies contained a record of all transactions within that currency. What was this record of transaction called? Hint


Question 4 of 10
4. What was the first decentralised cryptocurrency? Hint


Question 5 of 10
5. How were conventional banks and Bitcoin different when the cryptocurrency first emerged? Hint


Question 6 of 10
6. How could someone gain cryptocurrency? Hint


Question 7 of 10
7. In its first decade, the value of cryptocurrency could be volatile because it was unregulated. True or false?


Question 8 of 10
8. Which town in Queensland, Australia claimed to be the country's first digital currency town? Hint


Question 9 of 10
9. How could digital currency have benefited travellers on holiday abroad? Hint


Question 10 of 10
10. What was a potential disadvantage of using cryptocurrency while on holiday abroad? Hint



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Most Recent Scores
Mar 15 2024 : Linda_Arizona: 9/10
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Quiz Answer Key and Fun Facts
1. What is cryptocurrency?

Answer: A digital currency

Cryptocurrencies used encryption techniques to transfer funds digitally. The first steps to cryptocurrency began in 1983 when David Chaum, an American cryptographer, developed electronic money called eCash. He founded the company DigiCash, which provided users with ecash. Users of eCash could make transactions while remaining completely anonymous. 21st century cryptocurrencies were developed from David Chaum's technology.
2. Cryptocurrency needed to be stored in a bank. True or false?

Answer: False

David Chaum's eCash was implemented by banks, but the cryptocurrencies of the early 21st century were different. They could be used across the world and were independent of central banks. An individual's ownership of cryptocurrency was not based on how many physical coins they owned. Cryptocurrencies are like databases - they contain information on who owns the currency, how much they have, and what transactions have been made by them. Two users could trade using cryptocurrency without an intermediary like a bank.
3. Cryptocurrencies contained a record of all transactions within that currency. What was this record of transaction called?

Answer: A blockchain

While the owners of cryptocurrency were anonymous in that their name and home address were not normally linked to their account, owners could be identified by a different kind of address. All owners could be identified by a string of numbers - an address that was used in the blockchain. All of the transactions that an owner made was recorded there. Any owner of the cryptocurrency had access to the blockchain, so all users could see how much the others owned and what transactions have been made by them.
4. What was the first decentralised cryptocurrency?

Answer: Bitcoin

Bitcoin was created in 2009 by an unknown person or group using the pseudonym, Satoshi Nakamoto. Almost a decade later, it was still the most popular cryptocurrency. According to research carried out by the University of Cambridge, there were up to 5.8 million unique users of cryptocurrency.

After Bitcoin was created, other digital currencies followed. It wasn't long before users of cryptocurrency had a range of options to chose from.
5. How were conventional banks and Bitcoin different when the cryptocurrency first emerged?

Answer: A bank could alter the amount of money in an account but Bitcoin didn't work like that.

Banks could edit the amount of money in a user's account (if their details were stolen, the funds could be reduced to zero, for example). Cryptocurrency didn't work like that. There was no central organisation, so a user's funds could only change by following the rules of that particular network.

When it first began, Bitcoin users weren't constrained by geography: the cryptocurrency could be used in international transactions. Bank transactions could also be used for international transactions, both in a physical bank and online.
6. How could someone gain cryptocurrency?

Answer: Buy it using funds from a bank account or credit card

Cryptocurrency could be bought in a similar way to foreign currency. It could be exchanged for traditional currency, like British pounds or American dollars, at places like a Bitcoin exchange. Another way to gain cryptocurrency was to become a miner. A miner's job was to manage blockchains, and in exchange, they would earn Bitcoin.

As far as I know, there are no secret locations where cryptocurrencies are hidden like buried treasure!
7. In its first decade, the value of cryptocurrency could be volatile because it was unregulated. True or false?

Answer: True

Cryptocurrencies were volatile for a number of reasons. The fact that they were not regulated by a bank or a government meant that users could not be assured that their financial assets were secure. Cryptocurrency markets could be manipulated by one user proposing a large sale.

Other users may rush to buy or sell their own investments in retaliation. Then, the large transaction would be cancelled just before it was supposed to be carried out. This kind of activity resulted in significant, rapid changes in the value of a cryptocurrency.
8. Which town in Queensland, Australia claimed to be the country's first digital currency town?

Answer: Agnes Water

Agnes Water claimed to be Australia's first cryptocurrency-friendly tourist town in 2018. The move towards digital currency was an attempt to encourage tech-savvy travellers to visit the area and came soon after Brisbane International Airport became the world's first crypto-friendly airport.

A range of businesses, including tour companies, restaurants, and resorts, began to accept Bitcoin and other digital currencies.
9. How could digital currency have benefited travellers on holiday abroad?

Answer: They wouldn't need to buy different currencies when visiting multiple countries.

One of the benefits of cryptocurrency like Bitcoin was that it was used internationally. It could be exchanged all over the world and could be used in any establishment that accepted digital currency. Frequent travellers, especially those who visited a range of different countries in one trip or on a regular basis, wouldn't have to exchange foreign currencies whenever they travelled.
10. What was a potential disadvantage of using cryptocurrency while on holiday abroad?

Answer: The value of the cryptocurrency might have changed dramatically during the holiday.

As mentioned before, the value of a cryptocurrency can be volatile. When digital currencies like Bitcoin first began, many investors were in it for the short term. The currency was bought and sold quickly, causing its value to rise and drop rapidly. A British traveller who depended on digital currency for a long trip could have saved up £500 worth of Bitcoin, but when they landed in their holiday destination, the value of their savings could have dwindled significantly.
Source: Author AcrylicInk

This quiz was reviewed by FunTrivia editor stedman before going online.
Any errors found in FunTrivia content are routinely corrected through our feedback system.
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