Cryptocurrency & Blockchain: Checkpoint 1

Quick checkpoint - five questions on blockchains, Bitcoin, mining, volatility and DeFi.

Question 1 of 5 What makes a blockchain's history hard to alter?

A bank checks every entry Each block contains the previous block's hash, so changing old data breaks the chain It is written on paper Only one computer stores it

Many nodes keep matching copies of the ledger.

Question 2 of 5 What is Bitcoin's maximum supply?

Unlimited 21 million coins 1 billion coins 100 coins

Mining rewards halve roughly every four years.

Question 3 of 5 What happened when Ethereum switched to proof of stake in 2022?

Its energy use rose sharply Its energy use fell by over 99.9 percent It stopped working It became part of Bitcoin

The upgrade was called the Merge.

Question 4 of 5 Why are cryptocurrency prices so volatile?

They have fixed government prices They lack cash flows and are driven by speculation, leverage and sentiment They are backed by gold They are traded rarely

Leveraged liquidations can cause cascades of selling.

Question 5 of 5 What are smart contracts in DeFi?

Paper contracts signed by lawyers Programs on a blockchain that automatically carry out actions when conditions are met Bank loans Insurance policies

DeFi uses them for lending, borrowing and trading without banks.

← Back to NFTs: Boom and Bust Next lesson → Crypto Exchanges and the Risk of Custody

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