Explanation:

• Cryptocurrencies do not have any underlying asset.
• Cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
• Cryptocurrency is pseudonymous rather than anonymous in that the cryptocurrency within a wallet is not tied to people, but rather to one or more specific keys (or “addresses”). Thereby, bitcoin owners are not identifiable, but all transactions are publicly available in the blockchain. Still, cryptocurrency exchanges are often required by law to collect the personal information of their users.