Cryptocurrencies and Bitcoin

Which characteristics define electronic money? (2 correct answers). It exists only in physical form. It is created and managed by IT systems. It can enable anonymous transactions. It requires paper records. It cannot be protected by cryptography.

Which problems must cryptocurrencies solve? (3 correct answers). Double spending. Lack of trust between users. Malicious transactions. Unlimited scalability. Instant global acceptance.

What is a blockchain? (2 correct answers). A centralized bank database. A public distributed ledger. A trusted third party. A record of all transactions. A private storage system.

Which are valid cryptocurrency creation models? (2 correct answers). Government-issued centralized currency. Fully distributed mining-based currency. Manual creation by users. Random printing. Paper-based minting.

What prevents fraud in cryptocurrencies? (3 correct answers). Algorithmic currency creation. Decentralized transaction recording. Cryptographic verification. Secret bank servers. Physical signatures.

What does “trustless” mean in Bitcoin? (1 correct answer). No one uses Bitcoin. No banks are needed for verification. There is no security. All users must trust miners. Transactions are private.