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.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 3 only
- D. 1, 2 and 3
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. They receive bitcoins in exchange. The coins also can be bought and sold on exchanges with U.S. dollars and other currencies. Bitcoins have become popular because transactions can be made anonymously, making the currency popular with libertarians as well as tech enthusiasts, speculators – and criminals.