Investment in crypto-currency is a high-stakes gamble
Over the course of history we have witnessed technological advancements that have permanently altered the way humans live their lives. A new addition to this long list is crypto-currency. While many talk about this and some, around the globe, proceed with investing in the block-chain systems, the concept can be confusing to the layman. Crypto-currency, in simple terms, is a digital currency that allows its owners to buy and sell services. It uses a non-traditional online ledger via block-chain technology to secure online transactions.
Currently there are tens of thousands of such currencies making rounds of the global digital market. The most popular of these is the bit-coin currently fluctuating around $30,670. This is only about half of what it was worth in April this year. Then there are Binance Coin, Chainlink, Polkadot and Dogecoin. The total value of all crypto-currencies was more than $1.3 trillion on July 1.
While Binance (a crypto-currency exchange site) is the fourth most downloaded application in the country there is no regulation of the business by the government. According to a public notice on the State Bank website crypto-currency is “neither recognised as a legal tender nor has SBP (State Bank Pakistan) authorised or licensed any individual or entity for the issuance, sale, purchase, exchange or investment in any such virtual currencies/ coins/ tokens in Pakistan.”
Investors and enthusiasts claim on the other hand that an investment in some crypto-currency is currently the best possible way for making a lot of money. Crypto-currencies are promoted by some as the cash of the future. They point out that the value of a bit-coin has risen from a mere $268 in 2016 to $30,670 today. With the promise of great returns comes the possibility of great losses. ‘Experts’ warn that knowledge and understanding of trends are the keys to crypto investment success.