A passage is given below followed by several conclusions which can be drawn from the facts stated in the passages. You have to examine each inference separately in the context of the passage, decide upon its truth or falsity, and choose the conclusion that best supports the passage.

Virtual currency is a type of digital currency that is only available in electronic form and not in physical form. It is stored and transacted in only through designated software, mobile or computer applications, or through dedicated digital wallets, and the transactions occur over the Internet or over secure dedicated networks. Virtual currency is considered to be a subset of the digital currency group, which also includes cryptocurrencies. Such virtual currencies are often represented in terms of tokens and may remain unregulated without a legal tender. Unlike regular money, it relies on a system of trust and may not be issued by a central bank or other banking regulatory authority. Due to the lack of a centralized regulatory authority, such virtual currencies are prone to wide swings in their valuations. They derive their value based on the underlying mechanism, like mining in cases of cryptocurrencies, or the backing by the underlying asset. Virtual currencies usually have restricted usage, and it may be in circulation only among the members of a specific online community or a virtual group of users who transact online on dedicated networks.

The passage if true, is best supported by which of the following conclusions?

Virtual currencies are less volatile and not subjected to various risks.

Virtual coins are necessary to be regulated by the government and hence don’t have wide swings and variations.

To have virtual currencies in circulation there must be some underlying mechanism to verify transactions backed by some reward.

Virtual money is always safer than paper currencies as they are traceable digitally.

Without a legal tender, virtual currencies use and transactions are always safe and secure.