According to national and international media reports, the Internet currency, Bitcoin, has set a new record breaking through the $6,100 barrier. The currency has reached a record valuation of $100 billion for the first time ever in its history. The rise of cryptocurrency is attributed to another upcoming split in Bitcoin known as a “fork” which again led to the creation of another cryptocurrency called Bitco in gold. The Bitcoin holders are likely to get Bitcoin gold or ‘free money’ whenever it is issued.Bitcoin is different from regular currency issued by a government that could be inflated at its will.In Pakistan Bitcoin is illegal as the State Bank of Pakistan has not allowed the currencies like Bitcoin to operate in the country. The government agencies have already started taking action against OneCoin and Bitcoin. The bank has not specified the reasons for opposition the cryptocurrency. However, the Pakistan Information Technology Board is supporting efforts to earn Bitcoin which means the government institutions are not on the same page on the issue.
The Bitcoin is mathematically limited to 21 million Bitcoins and that could never be changed.Reports suggest the investors are betting on Bitcoin,holding its status despite the split and the currency has already undergone a fork in August when a new cryptocurrency called Bitcoin cash was created. However, Bitcoin has continued to perform amid rumors that China could reverse its ban on cryptocurrency exchanges which will give Bitcoin a boost. World economists believe the value of a Bitcoin could reach $10,000 in the next six to 10 months.The currency has been getting boost by favorable regulation in Japan which has allowed companies to accept the digital currency as payment. Incidentally, at least 57 percent of the trade in Bitcoin is executed in Japanese yen.The United States, on the other hand, has staked out a more cautious middle-ground where the financial firmsare told to get license for trades in the currency.However, the US government has exempted individuals and retailers from buying and selling of the currency from the permission. The national regulators of that country are keeping themselves at distance, but are monitoring the activity closely.
It is the time for authorities to decide the issue as Pakistan cannot be singled out in the comity of nations. Pakistan is likely to become IT hub in the future, but still it is waiting for the operations of online banks such as PayPal in the country.
