Globally, the popularity of digital currency is increasing. Whereas in Nepal, Bitcoin and other cryptocurrency are considered illegal forms of financial trade.

Since there is a huge debate regarding whether trade cryptocurrencies should be legal in Nepal or not. Here’s everything you need to know about how cryptocurrency works and it’s future in Nepal.

What is Cryptocurrency?

A cryptocurrency is a digital currency or form of payment that exists in form of computerized data. Since they are not linked to any form of traditional currency. Cryptocurrency does not exist in physical form (like paper money) and is typically not issued by a central authority. So economic structures like governmental bodies or banking institutions cannot control its transaction.

Generally, cryptocurrencies use strong cryptography to secure transaction records, control the creation of additional coins. And as well as verify the transfer of coin ownership.

There are various forms of digital currencies, but Bitcoin is one of the most valued and popular digital currencies as of now. It was invented by a Japanese programmer named Satoshi Nakamoto in 2009. Some other famous cryptocurrencies are Ethereum, Tether, Ripple, Dogecoin, etc.

Why are Cryptocurrencies so popular?

According to CoinMarketCap, There are around 12,000 cryptocurrencies all over the world. Why digital currencies are grabbing so much attention from people all across the world?

Cryptocurrencies are not issued by a central authority so it eradicates the controlling authorities like banks. The cryptocurrency transaction is direct and you don’t have to go through a third party, providing more control over your finance.

Banks tracks all your transaction and keep records how you spend your money but cryptocurrencies don’t. This will help you to maintain your privacy.

Cryptocurrencies can be basically obtained in three ways. You can exchange traditional currency with cryptocurrency. Either you can trade cryptocurrency for services or products. Or you can mine them.

Cryptocurrency In Nepal and Around the World

According to Nepal Rastra Bank, the transaction, usage, and mining of Bitcoin and other cryptocurrencies are illegal in the country. In 2017, two persons were arrested for allegedly being involved in a bitcoin racket.

Some countries like Australia, Japan, and the Switzerland has accepted cryptocurrencies as legal tender and legal assets. In some states of USA, parliament members are proposing to preserve financial budget in cryptocurrencies.

Looking the current popularity of cryptocurrency, it can be the future currency in the world. It will make obvious disadvantage in the future for us if our goverment keeps banning the possible future currency. We will be behind and still learning while the whole world will be ahead of us.

However, breaking odds and barrior some nepali investor taking help form relatives and friends living in the abroad are investing in cryptocurrency.