Understanding Cryptocurrency and Blockchain

What is a key characteristic of cryptocurrency that differentiates it from traditional currency?

• It is only used for illegal activities.

• It operates on a decentralized network.

• It is controlled by a central bank.

• It is backed by gold reserves.

How are transactions verified on a blockchain?

• By manually checking each transaction.

• Through a government agency.

• Through a network of computers solving complex problems.

• By a single central authority.

What role do miners play in the blockchain network?

• They solve complex problems to verify transactions.

• They store all the data on the blockchain.

• They regulate the price of cryptocurrencies.

• They create new cryptocurrencies.

What is a factor that can increase the value of a cryptocurrency like Bitcoin?

• Decreasing market interest.

• Finite supply and increasing demand.

• Government regulation.

• Unlimited supply of coins.

Why did Dogecoin see a significant increase in value?

• It had a limited supply like Bitcoin.

• It was backed by a major financial institution.

• It gained massive market interest.

• It was used as a primary currency in a country.