{"id":84694,"date":"2025-06-01T02:46:27","date_gmt":"2025-06-01T02:46:27","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=84694"},"modified":"2025-06-01T02:46:27","modified_gmt":"2025-06-01T02:46:27","slug":"which-of-the-following-statements-about-bitcoin-is-are-correct-1-i","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-about-bitcoin-is-are-correct-1-i\/","title":{"rendered":"Which of the following statements about Bitcoin is\/are correct?\n  1. I"},"content":{"rendered":"<p>Which of the following statements about Bitcoin is\/are correct?<\/p>\n<ul>\n<li>1. It is a decentralized virtual currency.<\/li>\n<li>2. It is generated through complex computer software systems.<\/li>\n<li>3. The Reserve Bank of India recognized it as a legal tender in January 2016.<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below.<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;1 and 2 only&#8221; option3=&#8221;2 and 3 only&#8221; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC CDS-1 &#8211; 2017<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-cds-1-2017.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-cds-1-2017\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">Statement 1 is correct; Bitcoin is a decentralized virtual currency or cryptocurrency that operates on a peer-to-peer network without a central authority like a central bank. Statement 2 is correct; Bitcoins are generated through a process called mining, which involves solving complex computational problems using powerful computer hardware. Statement 3 is incorrect; the Reserve Bank of India (RBI) has not recognized Bitcoin or any other virtual currency as legal tender in India. On the contrary, the RBI has issued warnings about the potential risks associated with trading in virtual currencies.<\/section>\n<section id=\"pyq-key-points\">Bitcoin is a type of cryptocurrency that is decentralized, relies on blockchain technology for transactions, and is generated through computationally intensive &#8216;mining&#8217;.<\/section>\n<section id=\"pyq-additional-information\">Legal tender is a medium of payment recognized by a legal system to discharge a public or private debt. As of 2016 and subsequently, the RBI has maintained that virtual currencies like Bitcoin are not legal tender and carry risks, including volatility and potential use in illicit activities.<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Which of the following statements about Bitcoin is\/are correct? 1. It is a decentralized virtual currency. 2. It is generated through complex computer software systems. 3. The Reserve Bank of India recognized it as a legal tender in January 2016. Select the correct answer using the code given below. [amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;1 and 2 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Which of the following statements about Bitcoin is\/are correct?\n  1. I\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-about-bitcoin-is-are-correct-1-i\/#more-84694\">Detailed Solution<span class=\"screen-reader-text\">Which of the following statements about Bitcoin is\/are correct?<br \/>\n  1. I<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1087],"tags":[1101,1142],"class_list":["post-84694","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-1","tag-1101","tag-current-news-and-affairs","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following statements about Bitcoin is\/are correct?  1. I<\/title>\n<meta name=\"description\" content=\"Statement 1 is correct; Bitcoin is a decentralized virtual currency or cryptocurrency that operates on a peer-to-peer network without a central authority like a central bank. Statement 2 is correct; Bitcoins are generated through a process called mining, which involves solving complex computational problems using powerful computer hardware. Statement 3 is incorrect; the Reserve Bank of India (RBI) has not recognized Bitcoin or any other virtual currency as legal tender in India. On the contrary, the RBI has issued warnings about the potential risks associated with trading in virtual currencies. Bitcoin is a type of cryptocurrency that is decentralized, relies on blockchain technology for transactions, and is generated through computationally intensive &#039;mining&#039;.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-about-bitcoin-is-are-correct-1-i\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following statements about Bitcoin is\/are correct?  1. I\" \/>\n<meta property=\"og:description\" content=\"Statement 1 is correct; Bitcoin is a decentralized virtual currency or cryptocurrency that operates on a peer-to-peer network without a central authority like a central bank. Statement 2 is correct; Bitcoins are generated through a process called mining, which involves solving complex computational problems using powerful computer hardware. Statement 3 is incorrect; the Reserve Bank of India (RBI) has not recognized Bitcoin or any other virtual currency as legal tender in India. On the contrary, the RBI has issued warnings about the potential risks associated with trading in virtual currencies. Bitcoin is a type of cryptocurrency that is decentralized, relies on blockchain technology for transactions, and is generated through computationally intensive &#039;mining&#039;.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-about-bitcoin-is-are-correct-1-i\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T02:46:27+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which of the following statements about Bitcoin is\/are correct?  1. I","description":"Statement 1 is correct; Bitcoin is a decentralized virtual currency or cryptocurrency that operates on a peer-to-peer network without a central authority like a central bank. Statement 2 is correct; Bitcoins are generated through a process called mining, which involves solving complex computational problems using powerful computer hardware. Statement 3 is incorrect; the Reserve Bank of India (RBI) has not recognized Bitcoin or any other virtual currency as legal tender in India. On the contrary, the RBI has issued warnings about the potential risks associated with trading in virtual currencies. Bitcoin is a type of cryptocurrency that is decentralized, relies on blockchain technology for transactions, and is generated through computationally intensive 'mining'.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-about-bitcoin-is-are-correct-1-i\/","og_locale":"en_US","og_type":"article","og_title":"Which of the following statements about Bitcoin is\/are correct?  1. I","og_description":"Statement 1 is correct; Bitcoin is a decentralized virtual currency or cryptocurrency that operates on a peer-to-peer network without a central authority like a central bank. Statement 2 is correct; Bitcoins are generated through a process called mining, which involves solving complex computational problems using powerful computer hardware. Statement 3 is incorrect; the Reserve Bank of India (RBI) has not recognized Bitcoin or any other virtual currency as legal tender in India. On the contrary, the RBI has issued warnings about the potential risks associated with trading in virtual currencies. Bitcoin is a type of cryptocurrency that is decentralized, relies on blockchain technology for transactions, and is generated through computationally intensive 'mining'.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-about-bitcoin-is-are-correct-1-i\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T02:46:27+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-about-bitcoin-is-are-correct-1-i\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-about-bitcoin-is-are-correct-1-i\/","name":"Which of the following statements about Bitcoin is\/are correct? 1. I","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T02:46:27+00:00","dateModified":"2025-06-01T02:46:27+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Statement 1 is correct; Bitcoin is a decentralized virtual currency or cryptocurrency that operates on a peer-to-peer network without a central authority like a central bank. Statement 2 is correct; Bitcoins are generated through a process called mining, which involves solving complex computational problems using powerful computer hardware. Statement 3 is incorrect; the Reserve Bank of India (RBI) has not recognized Bitcoin or any other virtual currency as legal tender in India. On the contrary, the RBI has issued warnings about the potential risks associated with trading in virtual currencies. Bitcoin is a type of cryptocurrency that is decentralized, relies on blockchain technology for transactions, and is generated through computationally intensive 'mining'.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-about-bitcoin-is-are-correct-1-i\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-about-bitcoin-is-are-correct-1-i\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-about-bitcoin-is-are-correct-1-i\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CDS-1","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-cds-1\/"},{"@type":"ListItem","position":3,"name":"Which of the following statements about Bitcoin is\/are correct? 1. 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