Which of the following currencies could be considered a digital currency?

The correct answer is Bitcoin, which is a well-known type of digital currency. Digital currencies traverse the internet, relying on technologies like blockchain to validate and record transactions securely and transparently. Bitcoin, introduced in 2009, exemplifies this by allowing users to conduct peer-to-peer transactions without the need for intermediaries, such as banks, and it operates outside traditional financial systems.

Digital currencies are characterized by their existence solely in electronic form, along with their potential for decentralized control and the ability to facilitate online transactions easily and efficiently. In contrast, gold, US dollars, and real estate are traditional assets representing tangible or fiat currency. While US dollars can have a digital representation in banking systems and transactions, they are not solely classified as digital currencies because they can also exist in physical form. Gold and real estate are physical commodities and assets and cannot be categorized as digital currencies, as they do not operate within the same digital framework established by cryptocurrencies like Bitcoin.