Q. With reference to Cryptocurrencies and Non-Fungible Tokens (NFTs), consider the following statements:
1.Bitcoin is fungible.
2.Anything digital can be converted into an NFT and monetized.
Which of the statements given above is/are incorrect?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: D
Notes:

Both statements are correct.

  • Statement 1 is correct: Cryptocurrencies designed to operate as currencies, such as bitcoin, are fungible, which means that any two bitcoins are similar and thus interchangeable.
  • Statement 2 is correct: Anything digital – images, videos, music, online version of various articles – can be converted into an NFT and monetized.