Bitcoins are gaining significant popularity for few months in the international market. However, it is not the case here in Nepal. So, here we try to answer two questions that have prevailed for quite some time: What is Bitcoin? Should Nepalese buy Bitcoin?
Bitcoin is basically digital money. It can be used for purchasing goods and is considered even better for investment. It allows the exchange of money for free without the use of banks or credit cards. Furthermore, their transactions take place online with users being completely or partially anonymous and untraceable.
There is no central authority to oversee Bitcoin. But there are people who check the transactions and are called the Bitcoin miners.
Bitcoin was worth $13 in 2013. While as of today, the value of Bitcoin has rocketed to over $7000. Mathematically, if someone had bought a Bitcoin in 2013, they would have got more than 500 times the original value today. Despite there being fluctuations in the value of Bitcoins, the general trend, however, is gradually increasing.
In context of Nepal
While there has been a significant investment on Bitcoin around the world, there are several countries that have actually banned Bitcoins. They are legal in countries like USA, India, Pakistan, Japan, South Korea and Australia. But, any form of Bitcoin transactions is illegal in Nepal, Bangladesh, Kyrgyzstan, Ecuador, and Bolivia.
Nepal Rastra Bank had released a notice on 13th August 2017 stating that buying, selling or any kind of transaction using Bitcoins is illegal. Nepal Police even arrested two founders of BitSewa (one of the Bitcoin exchange traders in Nepal) — Ram Dhakal and Pursottam Dhar Tuladhar.
So, should you buy Bitcoins?
As per the general trend, the value of Bitcoin is only rising. You might even gain double your investment within a year or so. But, unfortunately, the Government of Nepal isn’t supporting Bitcoins.
Actually, without the use of banks, there is no real profit or taxations for the Government. It is only the users who are for profit. So, if you are found buying Bitcoins right now, you may as well be punished.
However, the countries that have legalized the Bitcoins have looked upon the brighter side: to reduce the transaction fee.
The Final Say
We can’t do much right now from Nepal rather than seeing the value of Bitcoins rocketing sky high. We can just hope for our Government to support Bitcoins because it seems worth an investment. Nonetheless, it indeed is our responsibility to obey the rules that are made.