Scale Measuring Crypto Literacy Good for Pretest/ Posttest in Community Outreach

[alastantiger]

Three researchers from the University of Cincinnati's Department of Information Systems have developed a scale to measure financial literacy. They undertook this endeavor due to the growing interest in and increased knowledge and adoption of cryptocurrency worldwide. There is a need to measure crypto literacy, just as we can measure financial literacy. This is an excellent starting point if you intend to carry out a Bitcoin or cryptocurrency outreach in your locality. It helps provide you with an idea of the level of crypto literacy your audience may have. The scale can be administered as both a pretest and a posttest.

Some if the questions on the scale are

Who confirms that a Bitcoin transfer is valid?
a) Anyone who runs software that implements the Bitcoin protocol
b) Only Bitcoin developers
c) Only those who receive a license from a state or regulatory agency
d) Only those who own bitcoin
e) Don't know

Why is it difficult to alter older transactions in a proof-of-work protocol?
a) Older transactions are encrypted while the most recent transaction is unencrypted
b) Modifying older transactions requires significant computational resources
c) It is impossible to modify transactions once they are written to the blockchain
d) Older transactions are not stored on as many nodes
e) Don't know

What is the most likely effect on the market price of a particular cryptocurrency when a user unexpectedly forgets or cannot access the private key that controls a significant amount of cryptocurrency?
a) The market price will go up
b) The market price will go down
c) The market price will not change
d) Don't know

What is the formula for calculating a cryptocurrency's market capitalization?
a)Cryptocurrency price multiplied by the cryptocurrency's circulating supply
b)Cryptocurrency price multiplied by the cryptocurrency's maximum possible supply as authorized by the protocol
c) Cryptocurrency volatility multiplied by the cryptocurrency price
d) Cryptocurrency price divided by the cryptocurrency's circulating supply
e) Don't know

Which statement about bitcoin is true?
a) The rate of bitcoin production is decreasing over time
b) The rate of bitcoin production is increasing over time
c) The rate of bitcoin production is constant over time
d) The supply of bitcoin is fixed and no more bitcoin will be created in the future
e) Don't know


Link to the research paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4541401

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[hugeblack]

The questions they asked are simple, but some of their meanings are deep, such as those who can confirm bitcoin transactions are only those who own bitcoin (proof of stake), but some questions do not have correct technical answers, or at least they have a generalization of the term.
In general, it is good that we are now talking about bitcoin as a revolutionary technology and not as an investment, a speculative tool, a Ponzi model or even as it was said in the past that it is the currency of the dark internet.

I have downloaded the paper and will review it later, thanks for sharing it with us.

[Porfirii]

Very interesting, indeed. Maybe we could ask these questions to new members who want to join the forum, so they feel obliged to DYOR a little bit before posting.

Back on topic, I think that it is a good initiative that should be implemented in other parts of the country and export it to other ones too. Most people have never questioned his level of knowledge in crypto before.

[pawanjain]

The questions they asked are simple, but some of their meanings are deep, such as those who can confirm bitcoin transactions are only those who own bitcoin (proof of stake), but some questions do not have correct technical answers, or at least they have a generalization of the term.
In general, it is good that we are now talking about bitcoin as a revolutionary technology and not as an investment, a speculative tool, a Ponzi model or even as it was said in the past that it is the currency of the dark internet.

I have downloaded the paper and will review it later, thanks for sharing it with us.

I think the answer to that question is anyone who runs the software that implements bitcoin protocol.
I don't have to own bitcoin to confirm if the transactions are valid. I can simply run the bitcoin core software and validate any transaction I want.
So every node on the network confirms that the transactions are valid or not irrespective of whether their addresses hold bitcoin or not.
These are simple questions yet some of the options are tricky.

[odolvlobo]

I have problems some of the questions.

3. What is the most likely effect on the market price of a particular cryptocurrency when a user unexpectedly forgets or cannot access the private key that controls a significant amount of cryptocurrency?

The answer according to the authors is that the price will rise, but reality often does not follow economic theory. The correct answer is that the "most likely" effect is unpredictable, which is not a choice.

5. Who can access funds in a non-custodial wallet?

The answer according to the authors is "Only the individual who knows the private key", but of course that is wrong. A wallet contains private keys, and the user typically does not know (and does not need to know) their values. Perhaps they meant "password" instead of "private key"? The correct answer of course is anyone that can access the wallet.

I think the concept being conveyed by the question is "not your keys, not your coins", so I think a better answer (which is really just a slight variation of their answer) would be "only someone with access to the private keys held in the wallet", or perhaps just the simplistic answer, "the owner of the wallet".

13. Which of the following is true about central bank digital currencies (CBDC)?

The relation of CBDCs to cryptocurrencies is superficial at best. It's like asking about ChatGPT on an economics quiz. But, their paper is about their methodology for choosing the questions, so it is what it is.

The questions they asked are simple, but some of their meanings are deep, such as those who can confirm bitcoin transactions are only those who own bitcoin (proof of stake), ...

According to the authors, the answer to "Who confirms that a Bitcoin transfer is valid?" is "Anyone who runs software that implements the Bitcoin protocol" and not "only those who own bitcoin (proof of stake)". I think you are confusing that question with the question, "What is the term that describes a method of consensus in which individuals who pledge their own cryptocurrency funds...".

[348Judah]

Three researchers from the University of Cincinnati's Department of Information Systems have developed a scale to measure financial literacy. They undertook this endeavor due to the growing interest in and increased knowledge and adoption of cryptocurrency worldwide.

Am not after the technical aspects of the answers being provided but i know that everything they are or should be concluding on is on the base fact that bitcoin remains the ever most preferred currency in the world now and people allover the world are making moves to learn and adopt this decentralized network, knowing well with the understanding that bitcoin network is an entirely different network from the centralized one government controlled, also if all they are saying is not contradictory to the bitcoin network protocols and what it whitepaper says.

[ImThour]

Interesting, I would say. The fact that they are asking questions in universities now regarding Bitcoin and it's adaption says something. People are getting aware of it through any platform now.
Earlier, it was only for the geeks who are into Blockchain and Tech, now its for everyone who are willing to invest and spend some time out of their life for this tech, I have seen so many videos on TiKToks now and people are literally calling for easy 10x with Crypto now and attracting young age guys.

[Bureau]

I went through the link and found out that it is 30+ page PDF file. It can be downloaded and next time if any friend or family member of mine argues that they know everything about Bitcoin then I would ask them to go through these questions. If anyone is able to solve even 50 percentage of those questions then it is assumable that they have decent knowledge in this field. I have downloaded the PDF file and plan to solve those questions. The ones that OP has listed were easy to solve.

It is really good to see such an initiative by the University. Already more than 300 downloads have been registered in just a few days. It looks like people are showing good interest in this project.