With reference to Bitcoins consider the following statements 1 The value of the Bitcoins is based on...........

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With reference to Bitcoins, consider the following statements:

1. The value of the Bitcoins is based on a basket of currencies.

2. In India, only the entities approved by the Reserve Bank of India can transact in Bitcoins.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

Statement 1 is not correct. This is a virtual currency. There is no underlying or backing of any asset for
virtual currency. Its value seems to be depends on speculation.
o Statement 2 is not correct. Bitcoin is a digital currency that is not tied to a bank or government and
allows users to spend money anonymously.