On Wednesday, digital currency Bitcoin hit an all-time high surging above $2,400. The demand for crypto-assets soared as new tokens were created to raise funding for the startups by relying on blockchain technology.
The blockchain is the underlying technology behind the Bitcoin and is a financial ledger which is maintained by a network of computer systems. These computers track the movement of the assets without the need to rely on a central regulator.
Increasing by 4.3% from $2,363 to $2,409 on the BitStamp platform, the price of Bitcoin has more than doubled this year.
In the disreputable online underworld, the major reason behind the dominance of Bitcoin is its size according to cybercrime experts and technologists. The total value of all the Bitcoins in circulation is more than twice to the nearest hundreds that of all the other rivals.
A big contribution to the rise in the price of the Bitcoin is the increase in the demand for other digital currencies which are currently being sold as “initial coin offerings” or ICOs. Through ICOs, the blockchain startups sell their tokens to the public directly to raise capital for themselves and without any regulatory authority overseeing them.
The chief executive at DoubleLine Capital, Jeffrey Gundlach, tweeted on Tuesday, “Bitcoin up 100 percent in under 2 months. Shanghai down almost 10 percent same timeframe, compared to most global stock ups. Probably not a coincidence!”
The strong demand for Bitcoins in Japan is also one of the reasons that the value of this virtual currency has hiked so much. This currency can be moved in any part of the world quickly and anonymously without any central authority supervising it.
In the light of all these events, Federal Board of Revenue (FBR) has alerted itself to find the traders who are carrying out their transactions in Bitcoins. They believe that some people might be dealing in Bitcoins in an attempt to evade the taxes and for money laundering.
The State Bank of Pakistan doesn’t recognize cryptocurrencies including the Bitcoin, therefore, they are traded as commodities instead.
According to a report, since last December the Bitcoin trade is Pakistan has increased by 400%. The reason behind the popularity of Bitcoin in trading is its decentralized nature. There is no regulatory body and there are no checks and balances on the currency too. The entire trade can be done peer-to-peer while maintaining anonymity at the same time.
To gauge the level of cryptocurrency trade in Pakistan, an in-depth investigation will be carried out. It will help in determining whether the income is being taxed or not.
However, it is not that much of an easy task for the FBR to find out the truth. Because of anonymity and lack of a regulatory body, there are very low chances of their investigation gaining any fruitful results.
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