With reference to Bitcoin, which among the following statements is / are correct?
1.It is similar to a fiat currency in its nature
2.The bitcoin transactions don’t need a formal banking system
3.The bitcoin have a common function with the money that they have store of value
Which among the above statements is / are correct?

Answer: [C] Only 2 & 3

Only 2 & 3 are correct statements. Kindly note that a fiat currency is one which is backed by some government and has no intrinsic value. The bitcoin does not have an intrinsic value but it is not backed by a sovereign so it cannot be called a fiat currency.

This question is a part of GKToday's Integrated IAS General Studies Module