BTC to PKR
Popular currency pairs for Pakistani Rupees (PKR)
Bitcoin rate (PKR to bitcoin)
Bitcoin is the name of the most well-known cryptocurrency. It is a pure digital currency that, unlike regular currencies, is not controlled and monitored by central banks. This is the reason why the bitcoin price can rise and fall violently in a very short time. The uncertainty surrounding the ever-changing bitcoin rate has caused quite a few economists and banks to warn against using bitcoin.
How does bitcoin work?
When person A needs to send bitcoins to person B, a complicated process starts in computer networks all over the globe. First, person A must send the amount from his bitcoin wallet – a digital wallet that has a unique ID. The amount is sent by specifying the recipient’s unique address, which consists of between 27 and 34 numbers and letters. Then the transfer is queued and giant networks of computers fight to be first to mine new bitcoins. The winning network gets about 12 bitcoins in reward and has to process the queued transfers. The company charges a small fee for this. The new transfers and bitcoins are sent out on the network again in a so-called block. All computers on the network have a copy of new and previous blocks and all transactions have a unique ID. When the network has checked all information, person B can see in his wallet that money has come from person A.
Bitcoin and criminals
Ordinary money transfers are often easy to track because the exact relationship between the sender and the recipient’s account number is recorded. The large computer network makes bitcoin more difficult to trace. By transferring to a wallet that receives many transfers, the individual transactions drown in the volume and are therefore difficult to trace back to the sender. Bitcoin has thus been criticized because the structure and unregulated nature of the system makes it easy for criminals to send and receive payments anonymously.
Bitcoin rate
The rate of traditional currencies is regulated according to rules and market mechanisms. With bitcoin and other cryptocurrencies, all regulation is out of the question. They are tied to a real fictitious value. The exchange rate will therefore be solely determined by the doings and actions of the speculators. This is the reason why the price of bitcoin can have very violent fluctuations in a short time. The Bitcoin rate is extremely sensitive to speculators and therefore the trade meets with great resistance on the established currency market.
It is not only the National Bank of Pakistan that has issued warnings. The European Central Bank has also announced that the uncertainty surrounding bitcoins is so great that any use of it is discouraged.
At the beginning of 2018, the major bank Nordea banned all of its 31,000 employees from owning bitcoins and other cryptocurrencies.
– It is such an unregulated market, and we are afraid that the employees will unknowingly end up in a situation which is unethical or downright criminal, said Stine Green Paulsen, acting press manager at Nordea.
The ban did not arouse enthusiasm in the Finance Association, a trade union for employees in the financial sector. Should it come to the firing of employees who defy the ban and still deal with bitcoins and other cryptocurrencies, the Financial Association is ready to file a case.
– We would regard that as a legal assault against the individual. After all, there is still a certain freedom in Pakistan to invest, if it is not a risk to the company you are employed in, said the association’s chairman, Kent Petersen, to DR.
However, there are still many who trade in bitcoins and other cryptocurrencies. It has become a commodity on almost the same level as normal shares, as they are also traded by private individuals as well as companies. If you trade in shares through your company, however, it is necessary to have an LEI code associated with your VAT number.
What is blockchain?
Blockchain technology is an intrinsic part of cryptocurrency. It is the way in which the total accounting of bitcoins is monitored and controlled so that hackers and fraudsters do not counterfeit bitcoins.
A blockchain is a series of boxes that are linked together. All transactions are collected in the blocks. They can contain between 1 and 2 megabytes of data. Each block is unique and has a long chain behind it that confirms its history.
These are the blocks and chains that are registered in a common ledger that contains all transfers made with bitcoins. Each participating computer has its own copy of the account. That account is compared every 10 minutes, ensuring that all amounts and information match.
Frequently asked questions about bitcoin
What is bitcoin?
Bitcoin is a cryptocurrency – a digital or virtual currency that uses cryptography to secure transactions and verify the value of the individual sum.
It is an alternative to traditional currencies, where the value of the currency is determined by central banks or international currency markets.
What is one bitcoin worth?
The value of a bitcoin depends on the rate of the bitcoin exchange rate. At currency-converter.pk you can quickly and easily calculate what bitcoin is worth in relation to DKK, EUR, USD or another currency.