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.
✓ Correct answer: b) 2 and 3 only
ExplanationStatement 1 is incorrect : Bitcoin operates on a decen- tralized blockchain technology, which eliminates the need for any central au- thority such as cen- tral banks to track transactions.The system is maintained by miners who vali- date transactions and add them to the pub- lic ledger called the blockchain.While central banks are increasingly exploring the implications of cryp- tocurrencies and some are even considering issuing their own digital currencies (CBDCs), they do not currently track Bitcoin transactions.Statement 2 is correct : Anyone with a Bitcoin wallet (which generates a Bitcoin address) can send and receive Bitcoins to and from any other Bitcoin address, anywhere in the world.A Bitcoin address functions as a public key, similar to a digital bank account number.This address can be shared to receive pay- ments.Sending or receiving bitcoins requires no intermediary, allowing for peer-to-peer transactions across borders which is often faster and cheaper than traditional banking systems.Statement 3 is correct : Bitcoin transactions are pseu- do-anonymous which means
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