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Pakistanis riding new cryptocurrency gravy train

ghazi52

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Pakistanis riding new cryptocurrency gravy train


Mutaher Khan
October 18, 2021




The wild world of crypto is back in action, with Bitcoin breaching $60,000 at the time of writing (till publishing, it could be way off). Like every bull run anywhere, a sea of investors are probably flocking to the asset class in the hopes of getting rich quick, many of them Pakistani. This is regardless of the fact the regulatory framework doesn’t really recognise cryptocurrencies but when has that stopped anyone? Not only do fellow countrymen are increasingly taking more interest in this space but global exchanges are also eyeing the local market as an exciting opportunity.

All of it is best reflected in the latest report of Chainalysis, a blockchain data platform. According to their 2021 Global Crypto Adoption Index, Pakistan ranked third overall with a score of 0.36, just trailing India and Vietnam. This metric in turn is composed of three parts (all weighted by purchasing power parity); on-chain value received where we stood 11th; on-chain retail value received putting us in 12th place; and peer-to-peer exchange trade volume at 8th position.

Pakistan recorded around $20 billion of cryptocurrency value received during 2020-21, growing by an eye-popping 711 per cent

This marks an improvement from 15th place and an index value of 0.272 in 2020. With a top-three position, there is a lot of Pakistan-related data to unpack in the latest edition of the report. To start with, the country recorded around $20 billion of cryptocurrency value received during 2020-21, growing by an eye-popping 711 per cent. In absolute terms, that still puts us much behind Vietnam at roughly $80bn and India at $90bn. However, a more appropriate comparison is not with bigger markets, but with our own equities. Over the same period, the total traded value at the PSX was Rs4.78 trillion, which translates into $29.82bn at an average exchange rate of Rs160.29, as per data from Mettis Global.

Not to forget crypto is still a pretty new phenomenon not just in Pakistan but worldwide whereas the local exchange has been around since forever. Only a third of this value came through decentralised finance platforms though compared to Vietnam’s 47pc and India’s 59pc, meaning that centralised services still reign supreme. That in turn is reflected in Chainalysis’s introductory Global DeFi Adoption Index, where we came in 23rd with a value of 0.20.

“The differences between Central and Southern Asia’s biggest markets may reflect the fact that these countries are at different stages of cryptocurrency market development. Many first look to cryptocurrency in search of quick returns on speculative trading of a variety of investments, which can be done on centralised services and conventional peer-to-peer platforms, as appears to be the predominant use case in Vietnam and Pakistan. However, in markets like India where the cryptocurrency community has grown and attracted outside investment, we see more development and usage of innovative projects like DeFi protocols,” says the report.

Most of the Pakistani cryptocurrency activity was naturally concentrated in bitcoin, at around 25pc, and Ethereum/wETH about another one-third. Over a quarter of the total was in various stablecoins while the remaining (roughly 15pc) comprised altcoins, a much bigger share compared to India or Vietnam.

In terms of value sent by transaction size, the lion’s share came from professionals ($10,000-1,000,000) at over 40pc. Large institutional ($10m+) and institutional ($1-10m) accounted for almost a combined 53pc while small and large retail made up the remaining. This apparent presence of big players in the space seems odd and definitely warrants further research.

Regardless, the interest is there which can also be gauged from traffic data. Across January-June, mean monthly visits to Binance and Coinmarketcap stood at 886,438 and 877,738, respectively according to Semrush analytics. Search trends also give a similar picture where queries for bitcoin, dogecoin and ethereum were averaging 175,500, 64,200 and 22,100 during the period in review.

Meanwhile, the biggest exchange operating in Pakistan, Binance, is stepping up its outreach efforts. Since Oct 3rd alone, they have done an ask-me-anything YouTube live and another webinar on futures, which is two more than what most local brokerages have done throughout their existence or the stock exchange itself of late. No wonder then our capital markets are still stuck in a bygone era with not even a single shared economy stock and capital flows that haven’t recovered since the 2008 crash as if we were the only country to go through that.

Published in Dawn, The Business and Finance Weekly, October 18th, 2021
 

fisher1

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The only thing holding many of us back is whether its halal or haram. Unfortunately, the scholars are divided on this issue.

Would be nice if the government religious body declares it halal or haram. It will make the country's poverty situation a lot better.
 

Darth Vader

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The only thing holding many of us back is whether its halal or haram. Unfortunately, the scholars are divided on this issue.

Would be nice if the government religious body declares it halal or haram. It will make the country's poverty situation a lot better.
Much more halal then cash system currently in place
 

Jf-17 block 3

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The only thing holding many of us back is whether its halal or haram. Unfortunately, the scholars are divided on this issue.

Would be nice if the government religious body declares it halal or haram. It will make the country's poverty situation a lot better.
Depends on your school of fiqh. If your a hanafi than it’s halal
 

DJ_Viper

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crypto prices about to crash badly
be warned
this market has too much leverage now

I've heard this when BTC hit $5k and then 10K back in 2017 and have heard it continuously. At this time, the BTC has essentially replaced Gold as a safer asset class. So therefore, this is now an official industry and financial instrument with many billion dollar companies behind it. So it will fluctuate but it will go up and down a few thousands. It's very simple. This industry isn't going anywhere.

In the US stock markets, the BTC ETF (that the Fed stopped for years) is about to get launched. Expect more money to flow in and BTC to hit $ 75K at some point.

This organization posts up to date BTC / Crypto news:
 

AZMwi

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The only thing holding many of us back is whether its halal or haram. Unfortunately, the scholars are divided on this issue.

Would be nice if the government religious body declares it halal or haram. It will make the country's poverty situation a lot better.
its halal. its been declared by many prominent scholars. only futures trading in cryptocurrency is haram. its betting. and Scholars are not holding it back. the govt is not serious about it. several south american countries are looking to legalise cryptocurrency. infact Venezuela govt has officially started mining btc using volcanic energy.
 

Dr-who

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Heard there is patron groups which charge money and give analysis and advice on cryptocurrency.
Any idea which patron groups these are?
 

Trango Towers

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The only thing holding many of us back is whether its halal or haram. Unfortunately, the scholars are divided on this issue.

Would be nice if the government religious body declares it halal or haram. It will make the country's poverty situation a lot better.
Scholars lol..they are at the stage of swapping good dates for bad dates. Why do we ask people who still don't know the difference between usery and interest. Why do we ask people who still tell us banks are haram and keep money at home. I mean a million pounds at home. Why do we ask people who give fatwas that state Islamic mortgages are halal and add 6% interest over 25 or 30 years add it to the loan and tell u its halal. Then say do business with jaiz profit. And finally on my rant check what education and where the education the scholar received what does he know about finance. The answers will be madrassa and no financial education. It's our fault that Islam is a mess because we never challenge these aholes
 

Menace2Society

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The only thing holding many of us back is whether its halal or haram. Unfortunately, the scholars are divided on this issue.

Would be nice if the government religious body declares it halal or haram. It will make the country's poverty situation a lot better.
Just make a better life for you and your family, I don't understand why you always need your hand holding. Grow up man child.

"Is it bad I make a profit" :lol: :lol: :lol: It's bad when you have no f**king money, God would be looking down at your shaking his head in disappointment :lol:
 

SecularNationalist

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The only thing holding many of us back is whether its halal or haram. Unfortunately, the scholars are divided on this issue.

Would be nice if the government religious body declares it halal or haram. It will make the country's poverty situation a lot better.
Much more halal then cash system currently in place
Come on dude who cares about halal ,haram here in financial matters. Everyone already has a interest bearing savings account in the bank or somehow connected with a interest business i.e car leasing to home finance to interest bearing prize bonds.
Such a confused or hypocritical society we live in.
 

jamahir

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its halal. its been declared by many prominent scholars. only futures trading in cryptocurrency is haram. its betting. and Scholars are not holding it back. the govt is not serious about it. several south american countries are looking to legalise cryptocurrency. infact Venezuela govt has officially started mining btc using volcanic energy.
And can these "respectable" scholars tell us how is cryptocurrency not any different from outright Capitalist currencies like the Dollars and the Euro ? Such so-called scholars should consider reading about past progressive thought among Muslims. I quote one such progressive scholar from about a 100 years ago :
During the same period (1920s-30s), another (though lesser known) Islamic scholar in undivided India got smitten by the 1917 Russian revolution and Marxism.

Hafiz Rahman Sihwarwl saw Islam and Marxism sharing five elements in common: (1) prohibition of the accumulation of wealth in the hands of the privileged classes (2) organisation of the economic structure of the state to ensure social welfare (3) equality of opportunity for all human beings (4) priority of collective social interest over individual privilege and (5) prevention of the permanentising of class structure through social revolution.

The motivations for many of these themes he drew from the Qur’an, which he understood as seeking to create an economic order in which the rich pay excessive, though voluntary taxes (Zakat) to minimise differences in living standards.

In the areas that Sihwarwl saw Islam and communism diverge were Islam’s sanction of private ownership within certain limits, and in its refusal to recognise an absolutely classless basis of society.

He suggested that Islam, with its prohibition of the accumulation of wealth, is able to control the class structure through equality of opportunity.

Basically, both Sindhi and Sihwarwl had stumbled upon an Islamic concept of the social democratic welfare state.
Do these thoughtful findings from a 100 years ago fit with the "halal" cryptocurrencies these so-called scholars pronounce their ignorant fatwas one ?

We should seek to simplify life, not add to the already complicated socio-economic systems in most countries. These scholars you refer to should read this socio-economic proposal of mine.
 
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313ghazi

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Scholars lol..they are at the stage of swapping good dates for bad dates. Why do we ask people who still don't know the difference between usery and interest. Why do we ask people who still tell us banks are haram and keep money at home. I mean a million pounds at home. Why do we ask people who give fatwas that state Islamic mortgages are halal and add 6% interest over 25 or 30 years add it to the loan and tell u its halal. Then say do business with jaiz profit. And finally on my rant check what education and where the education the scholar received what does he know about finance. The answers will be madrassa and no financial education. It's our fault that Islam is a mess because we never challenge these aholes
This is the key problem. Today we expect the mullah to know about science, finance, tech, agriculture etc etc. Instead we need our financial analysts to have scholarly level understanding of Islamic laws around finance. We need our scientists to have a significant understanding of shariah. We've got it all backwards.
Come on dude who cares about halal ,haram here in financial matters. Everyone already has a interest bearing savings account in the bank or somehow connected with a interest business i.e car leasing to home finance to interest bearing prize bonds.
Such a confused or hypocritical society we live in.
We should care. We can be hypocrites, but we should care.
 

Darth Vader

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Come on dude who cares about halal ,haram here in financial matters. Everyone already has a interest bearing savings account in the bank or somehow connected with a interest business i.e car leasing to home finance to interest bearing prize bonds.
Such a confused or hypocritical society we live in.
Whatever any says, whole financial system of the world is directly or in directly related to haram.
 

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