← IGCSE Computer Science Paper 1

Cryptocurrency as an example of digital currency

A kind of digital currency, such as Bitcoin or Ethereum, that exists only electronically and is not printed or controlled by a government or central bank.

Part of: IGCSE Computer Science 0478 — 5.2 Digital Currency — Module 5

Understanding Cryptocurrency as an example of digital currency in IGCSE Computer Science Paper 1

What it does: Cryptocurrency is a type of digital currency. Not all digital currency is cryptocurrency, but all cryptocurrency is digital currency. Government currency is issued by a central bank, but a cryptocurrency such as Bitcoin has no central bank issuing it. Bitcoin is the best-known cryptocurrency. It exists only electronically, so there are no Bitcoin coins or notes. Ethereum is a cryptocurrency, just like Bitcoin.

Common mistakes: Ethereum is a cryptocurrency, so isCrypto should be set to TRUE, not FALSE. A dollar bill is physical government cash, not a cryptocurrency. The example should be "Bitcoin" (or Ethereum).

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This module's key terms are also in a printable crossword (Modules 500–509) and word search (Modules 490–509).

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Learning
Duo
Which statement about Bitcoin is correct?
Bitcoin is a physical coin made by a government mintBitcoin is a cryptocurrency, which is a kind of digital currency
Matches
Bitcoin is printed by the government
↓
Bitcoin is not printed or issued by any government. It exists only electronically as a cryptocurrency.
Applying
Meanings
Term
cryptocurrency
Meaning
A kind of digital currency, such as Bitcoin or Ethereum, that exists only electronically and is not printed or controlled by a government or central bank.
Practice
currency ← "Bitcoin"
Testing
Gaps
IF issuer "central bank" THEN
Check Answer
Spots
1coin ← "Ethereum"
2isCrypto ← FALSE

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Quick Questions

1. Which statement about Bitcoin is correct?
A. Bitcoin is a cryptocurrency, which is a kind of digital currency ✓
B. Bitcoin is a physical coin made by a government mint
Bitcoin is the best-known cryptocurrency. It exists only electronically, so there are no Bitcoin coins or notes.
2. Who issues and controls a cryptocurrency such as Bitcoin?
A. No government or central bank issues or controls it ✓
B. The central bank of the country prints it
A cryptocurrency is not issued by a government. Central banks print and control physical money, not cryptocurrency.
3. Which of these is another example of a cryptocurrency?
A. Ethereum ✓
B. Pound sterling notes
Ethereum is a cryptocurrency like Bitcoin. Sterling notes are physical cash issued by a central bank.
4. How are cryptocurrency and digital currency related?
A. Cryptocurrency and digital currency are exactly the same thing
B. Cryptocurrency is one kind of digital currency ✓
Digital currency is the wider term. Cryptocurrency is one well-known kind of it, so not every digital currency is a cryptocurrency.
5. Which description fits a cryptocurrency?
A. It can be printed on paper and kept in a purse
B. It exists only electronically ✓
A cryptocurrency has no physical form. It exists only as electronic records.

Match the Pairs

Bitcoin → The best-known cryptocurrency, which exists only electronically and is not issued by a government
Ethereum → Another example of a cryptocurrency, separate from Bitcoin and not controlled by a central bank
A cryptocurrency is one kind of digital currency, so every cryptocurrency is also a digital currency → cryptocurrency is a digital currency
A cryptocurrency is not printed or controlled by a central bank, unlike the notes and coins of a government → issuedBy = no central bank
Bitcoin is printed by the government → Bitcoin is not printed or issued by any government. It exists only electronically as a cryptocurrency.
Bitcoin is the only cryptocurrency → There are many cryptocurrencies. Bitcoin is just the best known, and Ethereum is another example.

Key Term

cryptocurrency
A kind of digital currency, such as Bitcoin or Ethereum, that exists only electronically and is not printed or controlled by a government or central bank.

Fill in the Blanks

1. IF issuer <> "central bank" THEN type ← "cryptocurrency" ENDIF
Hint: Type the operator that means not equal to, since a cryptocurrency is not issued by a central bank.
2. coins ← ["Bitcoin", "Ethereum"]
Hint: Type the name of another well-known cryptocurrency, often mentioned alongside Bitcoin.
3. DECLARE isDigital : BOOLEAN isDigital ← TRUE
Hint: Type the pseudocode data type used for true or false values.
4. IF c = "Bitcoin" OR c = "Ethereum" THEN OUTPUT "Cryptocurrency" ENDIF
Hint: Type the logical operator that makes the condition true if either coin matches.
5. isDigital ← TRUE isPrinted ← FALSE isCrypto ← isDigital AND NOT isPrinted
Hint: Type the Boolean value showing that a cryptocurrency is not printed like banknotes.

Spot the Error

Question 1
A coin ← "Ethereum"
B isCrypto ← FALSE
C OUTPUT isCrypto
Line B — Ethereum is a cryptocurrency, so isCrypto should be set to TRUE, not FALSE.
Question 2
A cash ← "Coins and notes"
B crypto ← "Dollar bill"
C OUTPUT crypto + " is crypto"
Line B — A dollar bill is physical government cash, not a cryptocurrency. The example should be "Bitcoin" (or Ethereum).
Question 3
A PROCEDURE showCrypto()
B OUTPUT "Bitcoin"
C OUTPUT "Ethereum"
D ENDFUNCTION
E CALL showCrypto()
Line D — A PROCEDURE must be closed with ENDPROCEDURE, not ENDFUNCTION. The procedure lists two cryptocurrencies.
Question 4
A coin ← "Bitcoin"
B digital ← TRUE
C printed ← TRUE
D OUTPUT coin, "is not printed"
Line C — Bitcoin exists only electronically and is not printed, so printed should be FALSE. The output on line 4 would otherwise be wrong.
Question 5
A kind ← "physical cash"
B example ← "Bitcoin"
C OUTPUT example + " is " + kind
Line A — Bitcoin is a kind of digital currency, not physical cash. kind should be "digital currency".

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