MOCK Q.401-Origin of Bitcoin is virtually anonymous & is not monitored by any Central bank or Government

MOCK Q.401- FRAMED FROM "The Hindu"

LINK: https://www.upsconlineacademy.net/

Q. Consider the following statements :

1. Origin of Bitcoin is virtually anonymous & is not monitored by any Central bank or Government

2. Anyone with a bitcoin address can send & receive bitcoins from anyone else with a bitcoin address

Select the correct answer using the codes given below :

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. C

Bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without

a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin

network without the need for intermediaries.

Transactions are verified by network nodes through cryptography and recorded in a public distributed

ledger called a blockchain. Bitcoin was invented by an unknown person or group of people using the name

Satoshi Nakamoto and released as open-source software in 2009. Bitcoins are created as a reward for a

process known as mining. They can be exchanged for other currencies, products, and services.

Research produced by the University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million

unique users using a cryptocurrency wallet, most of them using bitcoin.

Bitcoin has been criticized for its use in illegal transactions, its high electricity consumption,

price volatility, thefts from exchanges, and the possibility that bitcoin is an economic bubble.

Bitcoin has also been used as an investment, although several regulatory agencies have issued investor

alerts about bitcoin.