With the problems and corruption in Pakistan going uncontrolled. The govt is trying to tax each and every bank transaction. There are alot of problems with current tax laws in Pakistan of which I am not going to get into much details. But bear in mind that each and every Pakistani is taxed through Cellphone home phones, electric bills, tv bills, gas bills etc. Most of this sector which is below the poverty line doesn’t even know that they are the ones that are suppose to receive a refunds. This in return causes the richer to get richer and divert taxes while the poor get poorer. With recommendations of the new tax law if implemented every banking transaction in Pakistan will be taxed hence causing more burden to existing taxpayers and causing double taxation. While this could be avoided if our systems worked properly then this wouldn’t be a problem but the returns are hardly paid and have to go through alot of problems before you actually receive the payments. This may even propel the use of Bitcoin In Pakistan.
As mentioned before btc or bitcoin is a peer to peer system that works like utorrent and hence is equivalent to digital cash. While the leading world countries are now starting to accept this crypto currency and realize its existence (now evident by the acceptance of big players such as Paypal, Microsoft, Expedia, Namescheap, Goldman Sachs and entities such as NYSE) Pakistan still remains far behind. But with the law as proposed by Mr Isaq Daar it may cause people to look for alternate ways to transact with one another in order to avoid this hefty tax. Bitcoin/btc/xbt maybe the answer here and propel people to actually start storing money in bitcoin. It is now clear that Pakistan is a growing economy in the bitcoin era as Urdubit trade volumes have reached 3 btc avg daily. Paybill which is still very new and still building has seen an increase in mobile topups. Paybill has been designed for payment of bills in Pakistan.
I do hope that this tax is not implemented, but at the same time this does show us how important a true p2p currency is. The fact that all the funds of any person in any country can be blocked or controlled by any sort of external force at will can just call shivers. I leave the readers of this blog to comment and share your thoughts on this.
I figured it was time to update and give some information on what excatly is bitcoin and blockchain to my fellow country men. This is my view of what it is and why it is. Please realize that bitcoin in my opinon was created to make money truly yours. Currently all financial systems work through centralized banking, anyone living in Pakistan already know the problem with the control the banks have right now on our accounts. The idea is what I believe was in the head of satoshi that led to the creation of the first true peer to peer (similary to torrent) type currency known as btc or bitcoin. He laid the foundationg of an opensource ledger(database) for the general public where every entry was single entry and could not be removed. But all the ledger was synced with the other users running the software on the network. This software was known as a wallet which can be considered like a bank account of sort for the comman man. While you can have many wallat addresses in a single wallet it resides in public ledger. This is also why it is important to backup the wallet.dat file of your wallet if you have the full software running. There are now online wallets and paper wallets you can also store your bitcoins on online exchanges or bitcoin trading platforms. Do remember if you lose your wallet on your pc or paper wallet for any reason its gone forever. I believe that bitcoin is still in its infancey and has a long way to go, think about how internet came about:
There was Fax–> Bullitin Board Service or BBS–> email –>internet
It took it a long time, it wasent an overnight revolution. Similarly bitcoin is very new. While it has captured a huge market it still has a long way to go. There are benifits of the blockchain and bitcoin as both are being innovated upon. Some companies are working on blockchain(ledger, or database) such as voip (p2p) coins such as korecoin and viorcoin then there rare coins such as bay, blk etc that support smart contrants and p2p markets. Then there is the ripple gateway that is trying to replace the current swift system.
Then there are services that belive in bitcoin itself and are using its financial power to change the way we bank or use money today. Think about the fact that you own one currency that works throughout the world you dont have to worry about Pakistani ruppee price fluctuating aganist the USD (this is an example) as PKR is not accepted everywhere in the world. It is a true boarderless curreny that I believe is brining people closer together. The launch of https://www.coinpip.com is one such gateway which lets companies pay their developers anywhere in the world. Its a singaporian startup that is doing alot of work in this feild. They take the bitcoin out of picture but use bitcoin in the backend. Then there are exchanges and atms and user acceptance poping up everywhere around the world, such as microsoft, dell, paypal, namescheap, overstock etc. There are physicall vendors in Pakistan too. There is a shop in Gunjarawallla, a petrol pump/ gas station in Karachi, then http://www.paybill.io where you can pay your bills for Malaysia and Pakistan and also do mobile topups, or easy loads http://www.a2zlawn.com that are accepting bitcoins for payment, you can also check http://www.coinmap.org for a few other locations that accept bitcoins.
I have also witnessed the power of bitcoin recently and how user to user interaction increases adoption. I was contacted by a person who wanted to buy stuff from a vendor in another country wanted to learn about bitcoin and how it could benifit him. After consultations with us he wanted to give it a go. But his vendor was also fearfull of the price fluctions and how bitcoin could be risky as he believed it cant be real. The user here after consultation convinced his vendor that he would be taking this risk so there was no worries at his end. The first transation they did took all in all 15 mins and the cash was transfered in the vendors bank account while saving the payee money as compared to if he had used a credit card or wiretransfer. When the vendor saw this his response was: “This is really very easy, will you make more payments like this?” This is what I believe money should be, a truely boarderless medium with worldwide acceptance. The bad policies of some countries have left them in poverty, this doesnt mean that that the citizen of that country should not even have control over their funds/money and acceptablity etc. If the currency is truely boaderless he doesnt have to worry about local exchangers even.
I do believe this is only the begining of the future what the future holds, can only be witnessed in time. I do believe there is a need for one global international currency even the world powers such as china, russia and UN want this. There is an interesting article that was put out back in 2009 http://www.telegraph.co.uk/finance/currency/6152204/UN-wants-new-global-currency-to-replace-dollar.html and I think bitcoin is the answer for that.