Q91.
With reference to 'Bitcoins', sometimes seen in the news, which of the following statements is/are correct? 1. Bitcoins are tracked by the Central Banks of the countries. 2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address. 3. Online payments can be sent without either side knowing the identity of the other. Select the correct answer using the code given below.
Answer
B
Explanation
Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. The coins are created by users who 'mine' them by lending computing power to verifying other users' transactions. Statement 1 is incorrect - Bitcoins are NOT tracked by Central Banks. Bitcoins have become popular because transactions can be made anonymously - Statement 3 is correct. Anyone with a Bitcoin address can send and receive Bitcoins - Statement 2 is correct.