With reference to ‘Bitcoins’, sometimes seen in the news, which of the following statement(s) is/are correct?
- Bitcoins are tracked by the Central Banks of the countries.
- Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.
- Online payments can be sent without either side knowing the identity of the other.
Select the correct answer using the codes given below.
[UPSC Civil Services Exam – 2016 Prelims]
(a) 1 and 2 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
- The Bitcoin system is peer-to-peer and transactions take place between users directly.
- There is no involvement of any intermediary.
- So, it can’t be tracked by the Central bank or any intermediary. Hence statement 1 is incorrect.
- Bitcoins can be sent directly to anyone, anywhere in the world. Hence statement 2 is correct.
- The transaction can be done without revealing the identity. Hence statement 3 is correct.