Why is Bitcoin illegal in Nepal? There might be many people who know what a Bitcoin is, and many who might have heard about it being illegal in Nepal recently. Why has Bitcoin become illegal in Nepal? What is Bitcoin? What is internet money? If you have these questions in your mind, then you have come to the right place. There has been a lot of buzz about Bitcoin lately. Read on to find out about Bitcoin and the reason why it is illegal in Nepal.
What is Bitcoin?
Bitcoin is a form of cryptocurrency and digital payment system. The system works without a central repository and was invented by a group of unknown people. In Bitcoin, the system works on a peer-to-peer technology without an intermediary. Bitcoins are created as a reward for mining and can be exchanged in use for other currencies, services, and products. Bitcoin can also be held for longer period of time as an investment.
Nepali rupee is a currency that has been verified and put into use by the Nepal Rastra Bank. However, Bitcoin has not been verified and put to use by any system, nation or government. It is dependent entirely on customers.
What is the price of Bitcoin?
Bitcoin is a currency and naturally, it has a certain price. It is known to be the most expensive currency in the world so far. One Bitcoin is equivalent to 9.4 lakh rupees. Its value is rising day by day. In essence, 1 Nepali rupee is equivalent to 0.0000011 Bitcoin.
How is Bitcoin made?
Bitcoin is made by mining. Mining is a computerized process which uses a computer, internet, and electricity. Every government has a limit of creating currency on basis of their economy, and such is the case with Bitcoin., there cannot be more than 2 crores 10 lakh Bitcoins.
Until now, 1 crore 70 lakh Bitcoins have already been generating. It required a supercomputer, internet, and high power electricity. The process of mining a Bitcoin can be found in several videos.
What are the advantages of using Bitcoin?
Bitcoin can be used as a form of business that can be done in a hassle free manner all around the world. The price of Bitcoin is rising with each passing day and it is a form of earning money at a faster rate. Its business is done online.
Check also: Internet Users in Nepal | Nepal Internet Users
What are the disadvantages of using Bitcoin?
Bitcoin is not dependent or affiliated with any organization or government. Thus, the value of Bitcoin can decrease at any time. The responsibility of Bitcoin lies in the hands of the customer itself.
Why is Bitcoin illegal in Nepal?
Bitcoin is illegal in Nepal. In 2074, Nepal Rastra Bank generated a press release to make Bitcoin illegal in Nepal. There are a number of countries like Bangladesh, Iceland, Vietnam, Bolivia etc. which have made Bitcoin illegal in their countries.
The question as to why Bitcoin is illegal in Nepal Can be answered by the fact that the business of Bitcoin is not motorized. Its business is also unknown and it is highly probable for a person to invest their black money in Bitcoin. Also, the black money can be taken into another country easily with the help of Bitcoin. Hence, drug trafficking, fraud, and other criminal activities can increase with the use of Bitcoin, this is the main reason why Bitcoin is now illegal in Nepal.