Bitcoin: The Digital Currency, is considered as a payment system typically used as a peer-to-peer virtual transaction of money. The current value of this digital currency is $300 – $500, which hiked to $1200 in 2013 and failed to $100 in 2014. The fluctuation in the value of the Bitcoin hinted for a failure, but the financial markets of United States such as central banks, Silicon Valley and Wall Street are taking Bitcoin seriously. Economists around the world now believe this technology is going to change every industry that involves trust.
Bitcoin is a digital token that moves around and can be traded on a network of computers, scarce in itself as only 21 million Bitcoins ever be created. Every transactions are recorded in a ledger continually maintained around the world, like so the value of each Bitcoin which originally started with 50 cents turn into gold rush value. This peer-to-peer payment system has made it possible for payment from one country to another without hassle of the currency exchange. It’s the same way people use credit card for the transactions, with anonymity. Recalling the history of Bitcoin, it actually started its network from Silk road, a drug-dealing website. Bitcoin made it possible for illegal transactions between untrustworthy people for drugs and gambling, and each transaction went through every single time. Even though it is considered as Black mark for Bitcoin’s history, it is here to stay to change the monetary deals. To own a bitcoin, one must be on Bitcoin network with compatible computing resources, called mining. With the constant mining some bitcoins are generated and provided to the miners.
In the year 2009, Nepal started to use Bitcoin for online transactions. Previously few companies like Harilo, Bitcoin Nepal Private Limited, Hulas Remittance and few restaurants in Kathmandu traded/accepted Bitcoins for transactions. Later on the year 2014, Central Bank of Nepal prohibited use/buying and selling of Bitcoins as illegal, but no official documents have been published so far and people have been using Bitcoins for trading.
The website www.bitcoinxnepal.com is particularly trading/exchanging Bitcoin in Nepal. The clients can buy services and items which is not possible to buy from Nepalese market.
Few of the people are using Social Networking sites such as Facebook for this process.
Some people are trading Bitcoin for Top up Recharge codes of Ncell Mobile Operator Company of Nepal.
During the devastating Earthquake that hit Nepal on April 2015, Bitcoin Community donated using Bitcoin for the victims.
Drawbacks of Bitcoin for Nepal
- While trading Nepalese Currency into Bitcoins, there is no any such governing/monitoring bodies that can prevent the flow of Nepalese currency into International Market.
- The applications/software bought using Bitcoins cannot be proved genuine, which can also be maliciously coded to grab sensitive information of the victim.
- Buying Top up recharge codes using Bitcoins cannot be proved genuine, as the codes may or may not work after payment.
- Regarding the donation received from Bitcoin Community during Earthquake 2015, there is no transparency of amount received and distributed to the victim.
Basically Bitcoin has created a bigger impact in people’s lives with the impossible transaction process conjointly posing threat of Cyber-criminals and scammers because of the anonymity it provides.