Bitcoin - GS questions based on daily current affairs

ANSWER: Bitcoin

Explanation:
Web-based digital currency Bitcoin has hit its highest level in almost 3 years on 9^th Dec 2016 extending gains since India sparked a cash shortage by removing high denomination bank notes from circulation in Nov 2016.

Bitcoin was trading at USD 774 in the NY based titbit exchange up 1 percent on that day and the highest since Feb 2014, having climbed 9 percent in the past month.

The Nov 8 demonetisation of INR 500 and 1000 rupee notes worth USD 256 billion was a move aimed to fight corruption, black money, forgery and terrorism.

What is Bitcoin?

• Cash alternative
• Cryptocurrency’s value is volatile.
• It rose to USD 1,100 in 2013 and fell to USSD 150 by 2015.
• It has currently stabilised staying at USD 500 for the past six months.
• It has climbed 80% in 2016.
• It climbed 35 percent in 2015.
• It can be used for moving money across the globe quickly and anonymously.

ANSWER: None

Explanation:
- The Internal Revenue Service considers bitcoin as property.
- Federal judge considers bitcoin as currency.
- Commodity Futures Trading Commission has decreed Bitcoin is a commodity
- Bitcoin refers to a kind of digital currency where encryption techniques are used for regulation of generation of units of currency and verification of the transfer of funds, operating independently of a central bank.

ANSWER: All the above

Explanation:
Bitcoin is a payment system invented by Satoshi Nakamoto, who published the invention in 2008 and released it as open-source software in 2009.The system is peer-to-peer; users can transact directly without needing an intermediary. Transactions are verified by network nodes and recorded in a public distributed ledger called the block chain.
Commodity Futures Trading Commission in US has determined that digital currencies are commodities subject to its regulations.