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Cryptocurrency in Nepal
Cryptocurrency is a virtual or digital currency that works on Blockchain Technologies, designed to work as a medium of exchange online to buy goods, and services and make payments. It was introduced by a group of people named Satoshi Nakamoto in 2009 A.D. As Cryptocurrency is decentralized and free from any third-party interference, which means it is not controlled by the Government or central authorities. It also charges very low transaction costs. Cryptocurrency is different from other online payments like Esewa, Khalti, GPay, and PayPal because these are centralized by the Government or Banks of a country. Cryptocurrency has influenced a number of people through world Wide, As it is free to use for everyone. Due to this increase in popularity, many new companies are coming forward to invest in it. Anyone can trade, spend and borrow money around the world through cryptocurrency with the help of the internet. Compared to Physical money cryptocurrency is much better and more secure. As it is Secured by Cryptography. Many people from different countries are involved in it and living their life. It is also unstable. Cryptocurrency is cheaper and faster for money transfer. Through cryptocurrencies, we can buy or trade any assets digitally direct from one to one without any third person. Cryptocurrencies can be purchased from a cryptocurrency exchange and not all eCommerce site allows purchasing using cryptocurrencies. The transaction done through cryptocurrency is irreversible. While trading through cryptocurrency the identity of the sender and receiver are secret, so different government of a country has criticized it as an illegal activity. It is regarded as a digital asset. Transaction done through cryptocurrencies is faster compared to different digital
transactions. It is regarded as also a high risk of use. If you forget your account password or pin code then there is no way that you can get your assets. So, before using or investing in cryptocurrencies you should be aware of their advantages, and disadvantages. In 2022 many countries are trying to issue authority on cryptocurrency by applying different protocols to it. Technology has made a huge change in this generation. So, in order to use cryptocurrencies, you must have access to the internet and devices like mobile, computers.
Types of Cryptocurrency
There are many cryptocurrencies like Bitcoin, Defi, NFT, and LItecoin but among them, Bitcoin is the most popular and valuable cryptocurrency. There are thousands of cryptocurrencies available in the market today. Each of them has its own functions and specification. Bitcoin was available to the public in 2009 and remains the most traded cryptocurrency. As its value is only increasing rapidly day by day.
Are Cryptocurrencies Legal?
Cryptocurrencies are legal in the European Union. The legality of cryptocurrencies varies from country to country. Some countries like the USA and UK have the authority to use cryptocurrencies. There are many reasons to make it legal and illegal to use cryptocurrencies, As it has its own Advantages and Disadvantages. Till now in Nepal, the government of Nepal hasn’t given the authority to use cryptocurrencies. Most governments of a country also have banned trading cryptocurrencies. Cryptocurrency exchanges operating in the country are subject to collect information about the customers and details relating to the wire transfer. Cryptocurrencies are not backed by any public or private entities. Therefore, it has been difficult to make a case for legal status in different financial jurisdictions throughout the world. Many countries of government have given authority to trade through cryptocurrencies by applying different protocols. Nepal’s government hasn’t issued an authority to use cryptocurrencies because while trading through cryptocurrencies, it won’t charge any tax. But still many people of Nepal are using cryptocurrency illegally and if they are found so, they will be punished by the government of Nepal. Nepal’s government also has suggested to banned ads on cryptocurrencies on different websites.As Cryptocurrency is banned in Nepal since 2017 A.D. Many people in different countries are cheated by frauds through cryptocurrencies, so in order to risk it, you should be careful and have knowledge of it. Nepal is unable to have proper regulations over bitcoin transactions, as it is mostly done through the internet and Nepal doesn’t have the powerful technologies which are needed to regulate it that’s why it might be banned. It might also damage the Economy of a Country, As our wealth is sent to other countries for digital assets. So different countries have their own perspective on either using cryptocurrency or not. Many countries also have benefited from using cryptocurrencies. Maybe after a few years, many more countries will be issuing authority to use or invest in cryptocurrency.
Advantages of Cryptocurrency:
1. Lower Transactions fees and the Elimination of Bank Charges
In traditional business dealings middlemen like bank, brokers, and agents
charges fees when you make any transactions but in cryptocurrencies, the dealing is done through one to one so, so the transaction fees are either reduced or removed.
2. More secure Transactions
While doing transactions from cryptocurrencies our identities are secured.
3. Lower Transactions fees for International Payments
while we are making transactions from one country to another country from cryptocurrencies the transaction is lower than the traditional
4. Accessible to Everyone
Anyone with the internet having a computer or mobile can receive, and send money from cryptocurrencies. It is beneficial for unbanked members of society.
5. Easy Transactions and Easy of use
While doing transactions from cryptocurrencies, it’s easy to use and transactions can be made in a short period of time.
6. Fast and Immediate settlement
As cryptocurrencies are decentralized systems where there is no use of third-party approvals needed for transactions to be rendered
successful. Therefore cryptocurrencies are quick.
Disadvantages of Cryptocurrency:
1. Lack of Knowledge
Lack of Knowledge is the main disadvantage of using or investing in cryptocurrencies as leads to risk and loss of time. So, proper knowledge
is needed to use or involved in it.
2. It’s risky and unsafe to scam.
Many people are being tricked by scammers as they use platforms like Facebook, Instagram, and Twitter
3. Cryptocurrency is not accepted widely
As in different countries, Cryptocurrencies are banned so, it’s not widely accepted.
4. Storing Cryptocurrency
Sometimes you might lose your virtual wallet or delete your currency. There might be also theft from websites that let you to store your
5. The cryptocurrency market is not regulated by the Financial Authority.
As cryptocurrencies are decentralized from the financial conduct. There are no rules in place to protect your business.