Prelims 2016 · Science and Technology · Question 91
With reference to 'Bitcoins', sometimes seen in the news, which of the following statements is/are correct?<br/>1. Bitcoins are tracked by the Central Banks of the countries.<br/>2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.<br/>3. Online payments can be sent without either side knowing the identity of the other.<br/><br/>Select the correct answer using the code given below.
Answer
2 and 3 only
1. Incorrect. Bitcoin is a decentralized cryptocurrency; it is not tracked or issued by central banks in the normal sense. Transactions are recorded on a public blockchain maintained by the network.
2. Correct. Anyone with a Bitcoin address can send/receive bitcoins to/from another Bitcoin address through the peer-to-peer network.
3. Correct. Bitcoin payments can be made without directly revealing real-world identity; users transact via addresses, so parties need not know each other's personal identity.
Hence, statements 2 and 3 only are correct.