GK Quiz on Cryptocurrency

Cryptocurrency has moved from being a niche internet concept to a major global financial topic discussed by governments, investors, and everyday users. Over the past decade, digital currencies such as Bitcoin and Ethereum have reshaped conversations around money, banking, and online security. Even people who don’t invest in crypto are affected by it through news, regulations, and emerging digital payment systems.

At its core, cryptocurrency is a form of digital money secured by cryptography and powered by blockchain technology. Unlike traditional currencies issued by central banks, cryptocurrencies are decentralized and operate on distributed networks. This structure is what makes them both innovative and controversial. Supporters view crypto as a tool for financial independence and technological progress, while critics raise concerns about volatility, regulation, and misuse.

Understanding cryptocurrency is no longer limited to finance experts. Students, job seekers, competitive exam aspirants, and general knowledge enthusiasts are increasingly expected to have a basic awareness of digital currencies and blockchain systems. Cryptocurrency-related questions now appear in quizzes, interviews, and general awareness sections of exams.

This GK quiz is designed to strengthen your foundational knowledge in a simple and engaging way. The questions cover essential facts about cryptocurrencies, their origin, working principles, major players, and real-world applications. Each answer includes a short explanation so you can learn the concept, not just memorize the fact.

1. Who is credited with creating Bitcoin?

a) Elon Musk

b) Satoshi Nakamoto

c) Vitalik Buterin

d) Bill Gates

Answer: b) Satoshi Nakamoto

Explanation: Satoshi Nakamoto is the pseudonymous creator of Bitcoin, introduced in 2009 through a whitepaper describing a decentralized digital currency.

2. In which year was Bitcoin launched?

a) 2005

b) 2008

c) 2009

d) 2012

Answer: c) 2009

Explanation: Bitcoin officially launched in January 2009 when the first block, known as the Genesis Block, was mined.

3. What technology powers cryptocurrencies?

a) Cloud computing

b) Blockchain

c) Artificial Intelligence

d) Data mining

Answer: b) Blockchain

Explanation: Blockchain is a distributed digital ledger that records transactions securely and transparently across multiple computers.

4. What is the process of verifying crypto transactions called?

a) Mining

b) Printing

c) Encoding

d) Signing

Answer: a) Mining

Explanation: Mining involves validating transactions and adding them to the blockchain while earning rewards in cryptocurrency.

5. Which cryptocurrency is known as the second largest after Bitcoin?

a) Ripple

b) Ethereum

c) Litecoin

d) Dogecoin

Answer: b) Ethereum

Explanation: Ethereum is the second-largest cryptocurrency and introduced smart contracts, expanding blockchain use beyond payments.

6. What is a crypto wallet used for?

a) Storing physical coins

b) Storing private keys

c) Mining coins

d) Printing currency

Answer: b) Storing private keys

Explanation: A crypto wallet stores private keys that allow users to access and manage their digital assets.

7. What does decentralization mean in cryptocurrency?

a) Controlled by one bank

b) Managed by governments

c) No central authority

d) Printed physically

Answer: c) No central authority

Explanation: Cryptocurrencies operate without a central governing body, relying on distributed networks instead.

8. What is the smallest unit of Bitcoin called?

a) Microbit

b) Satoshi

c) Nano coin

d) Crypto cent

Answer: b) Satoshi

Explanation: One Bitcoin can be divided into 100 million smaller units called satoshis.

9. What is a smart contract?

a) A legal document

b) A blockchain-based automated agreement

c) A bank contract

d) A trading license

Answer: b) A blockchain-based automated agreement

Explanation: Smart contracts automatically execute agreements when predefined conditions are met.

10. Which country made Bitcoin legal tender in 2021?

a) Japan

b) USA

c) El Salvador

d) Germany

Answer: c) El Salvador

Explanation: El Salvador became the first country to adopt Bitcoin as official legal tender.

Cryptocurrency represents a major shift in how people think about money, technology, and financial independence.