← IGCSE Computer Science Paper 1

Digital currency compared with physical cash

Both pay for goods, but digital currency exists only as electronic records in a wallet, sent over a network with a device and connection, while cash is physical coins and notes handed over.

Part of: IGCSE Computer Science 0478 — 5.2 Digital Currency — Module 4

Understanding Digital currency compared with physical cash in IGCSE Computer Science Paper 1

What it does: The condition shows digital payment only works when both a device and a connection are available, while cash needs neither. The form of cash is physical coins and notes, whereas digital currency has the form of electronic data. Both work as payment. They differ in form, storage and how they are sent.

Common mistakes: Digital currency is stored in a digital wallet, not a purse. A purse holds physical cash, so line 4 should be digiStore ← "wallet". Digital currency needs a device such as a phone or computer to send or receive it. Line 3 should output "needs a device".

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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 describes how digital currency exists?

Only as electronic records stored on computersAs coins and notes you can hold

Matches

purse = digital_currency

↓

A purse holds physical coins and notes. Digital currency is stored in a digital wallet, not a purse.

Applying

Meanings

Term

digital currency vs cash

Meaning

Both pay for goods, but digital currency exists only as electronic records in a wallet, sent over a network with a device and connection, while cash is physical coins and notes handed over.

Practice

IF payment = "cash" THEN

Testing

Gaps

needsDevice ←

Check Answer

Spots

3cashStore ← "purse"

4digiStore ← "purse"

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Quick Questions

1. Which statement describes how digital currency exists?

A. Only as electronic records stored on computers ✓

B. As coins and notes you can hold

Digital currency has no physical form. It exists as electronic data, while cash is physical coins and notes.

2. Where do you keep digital currency?

A. In a purse or wallet in your pocket

B. In a digital wallet on a device or online ✓

A digital wallet stores the access details for your digital currency. A purse holds physical cash.

3. How is digital currency sent to another person?

A. By handing coins or notes to them

B. Over a network such as the internet ✓

Digital currency moves as electronic data over a network. Cash is handed over in person.

4. What do you need to spend digital currency?

A. A device and a network connection ✓

B. Nothing, you just hand it over

Digital payments need a device (like a phone) and a connection. Cash needs neither.

5. Which is true about cash and digital currency?

A. Both can be used to pay for goods ✓

B. Only cash can be used to pay for goods

Both work as payment. They differ in form, storage and how they are sent.

Match the Pairs

wallet = 25.50 → Digital currency is stored as an electronic record in a digital wallet, not as coins or notes in a purse.

send(coins, to_friend, network) → Digital currency is sent over a network, so no one has to hand anything over in person.

Digital currency needs a device and an internet connection to be spent, but cash does not. → if device and connection: pay(digital)

Cash is a physical form of money that you hand over, so it is not stored as electronic data. → form = "coins and notes"

purse = digital_currency → A purse holds physical coins and notes. Digital currency is stored in a digital wallet, not a purse.

digital_currency.handOver(coins) → Digital currency cannot be handed over like coins. It is sent over a network as electronic records.

Key Term

digital currency vs cash

Both pay for goods, but digital currency exists only as electronic records in a wallet, sent over a network with a device and connection, while cash is physical coins and notes handed over.

Fill in the Blanks

1. form ← "digital" needsDevice ← TRUE

Hint: Type the Boolean value that shows digital currency needs a device to be used.

2. form ← "cash" needsNetwork ← FALSE

Hint: Type the Boolean value showing that handing over coins and notes does not need a network.

3. IF form = "cash" THEN OUTPUT "Hand over coins and notes" ENDIF

Hint: Type the keyword that starts the block of code to run when the condition is true.

4. IF form = "digital" THEN OUTPUT "Stored in a digital wallet" ENDIF

Hint: Type the comparison operator that checks whether the form is equal to a value.

5. IF hasDevice AND hasConnection THEN OUTPUT "Digital payment can be sent" ENDIF

Hint: Type the logical operator that makes the condition true only when both the device and the connection are present.

Spot the Error

Question 1

A cashForm ← "coins and notes"

B digiForm ← "electronic data"

C cashStore ← "purse"

D digiStore ← "purse"

Line D — Digital currency is stored in a digital wallet, not a purse. A purse holds physical cash, so line 4 should be digiStore ← "wallet".

Question 2

A IF payType = "digital" THEN

B OUTPUT "send over network"

C OUTPUT "needs no device"

D ENDIF

Line C — Digital currency needs a device such as a phone or computer to send or receive it. Line 3 should output "needs a device".

Question 3

A payType ← "cash"

B needDevice ← FALSE

C needInternet ← TRUE

D OUTPUT payType

Line C — Paying with cash needs no internet connection because coins and notes are handed over in person. Line 3 should be needInternet ← FALSE.

Question 4

A payType ← "digital"

B method ← "hand over"

C OUTPUT payType

D OUTPUT method

Line B — Digital currency is sent over a network as electronic records. It is not handed over like cash. Line 2 should be method ← "send by network".

Question 5

A cashForm ← "electronic data"

B digiForm ← "electronic data"

C OUTPUT cashForm

D OUTPUT digiForm

Line A — Cash is physical, in the form of coins and notes. It is not electronic data. Line 1 should be cashForm ← "coins and notes".

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