Thread: What is Cryptocurrency?

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    Ghost Protocol
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    Re: What is Cryptocurrency?

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    Re: What is Cryptocurrency?

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    Re: What is Cryptocurrency?

    I had 1.5 bitcoin on my laptop and it got stolen, two years ago.In 2008 my friend bought 100 bitcoin for around £100.00, he said one day they will be worth over £1000.00. I just laughed at him. Back in 2014, he sold his bitcoins between £700.00 to £1000.00 each. A few days back, I have seen him and he was bit sad, he said he should have waited few more years and could have more money.

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    Re: What is Cryptocurrency?

    I had 1.5 bitcoin on my laptop and it got stolen, two years ago. In 2008 my friend bought 100 bitcoin for around £100.00, he said one day they will be worth over £1000.00. I just laughed at him. Back in 2014, he sold his bitcoins between £700.00 to £1000.00 each. A few days back, I have seen him and he was bit sad, he said he should have waited few more years and could have more money.

    شامی بھائی ،کل بٹ کوئن نے ٢٠،٠٠٠ ڈالر کو ٹچ کیا تھا آپ کے دوست کو تو نیند ہی نہیں آرہی ہوگی کہ ٢ ملین ڈالر کا نقصان ہو گیا آپ بھی اب تھانے جا کر رپورٹ درج کروادیں ٣٠،٠٠٠ ڈالر چوری کی

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    Re: What is Cryptocurrency?

    I had 1.5 bitcoin on my laptop and it got stolen, two years ago.

    Shami Sahib,I am very sorry to learn about your loss. It absolutely stinks mate to loose even a bit of your wealth no matter what form it is in. So sorry.Did you reinstall the OS (MS/Unix/Linux, Apple macOS..etc)?You need to have multi-factor security information on your wallet related to your peers, a password, and a private key generated every transaction to conduct a successful trade/invest/exchange. Most of the times, a collaboration software such as teamviewer, skype, Lync etc, is hacked with a phishing link, which if collects accesses the computer to download the information. But if you have not stored your password and/or private key in the wallet then it is difficult for hackers to access your bitcoin information and wipe it off.The only scenario is when a bitcoin owner clicks a phishing link and provides all three multi-factor security information to a website/wallet that is not authentic.  Therefore, it is important that when you open a wallet, you make sure it is authentic. For example, MYETHERWALLET LLC (US) would be displayed on the left hand side confirming the certificate of the wallet. If it is not displayed then the User Interface is a phishing site.Do you have Bitcoin address and transaction ID? If yes, you can find “ethical” hackers who could trace the malware at a percentage of the recovered value.If you have mistakenly entered the information on a phishing UI wallet then, I am afraid, it is gone, mate. So sorry.

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    Re: What is Cryptocurrency?

    It is quite sad that there is zilch government policy information on virtual/crypto currencies in Pakistan. I have learnt from many SBP officials who visited recently for refresher courses that SBP has highly qualified professionals and experts who can manage these new payment methods however, lack of technical and financial acumen at legislative bodies have been the main pull-back that kept them from working on this matter with SBP/SEC payment advisers. Some of the issue for regulators, which has repeatedly been mentioned in such discussions is to define what it is in financial terms (is it a money, commodity, tangible collateral in lieu of services or goods). Secondly, bitcoin and its transaction can be traced on a distributed digital ledger (blockchain a form of internet which facilitates the transaction also records all information in public) but the the owner of a particular BTC wallet could remain pseudonym and hence it is challenging to establish real identity. Thirdly, how to set conversion fees if defined as currency, capital gain tax if defined as asset, what what would be the methods for loss treatments since it is an intangible currency? Last but not least, Sharia Law instruments only work/allow investment/trading/exchange with tangible currency or asset. Ulema of CII need to be involved to get any legislation/regulation approved.

    • This reply was modified 11 months, 2 weeks ago by  Lovelyday.
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    Re: What is Cryptocurrency?

    Lovelyday bhai, thank you for your concerns, but to be honest it does not really bother me anymore. I mined those coins back in 2010 or 2011. At that time the coins were worth £10.00 or so. Actually, I had around 50 coins and I sold most of them between £30 to £50 each. At the time, it was the best decision. One of my friend’s friend bought 10 coins, early this year, I think he is happy the way Bitcoins are going up.The laptop I was using was Windows 7 laptop and did not have any backup of my wallet, as I was not very concerned about it. I don’t really use Windows machine due to my work. You are right about the multi-factor security. I don’t think the laptop got stolen because of bitcoin, whoever got it probably reinstall Windows on it for resale.

    Shami Sahib, I am very sorry to learn about your loss. It absolutely stinks mate to loose even a bit of your wealth no matter what form it is in. So sorry. Did you reinstall the OS (MS/Unix/Linux, Apple macOS..etc)? You need to have multi-factor security information on your wallet related to your peers, a password, and a private key generated every transaction to conduct a successful trade/invest/exchange. Most of the times, a collaboration software such as teamviewer, skype, Lync etc, is hacked with a phishing link, which if collects accesses the computer to download the information. But if you have not stored your password and/or private key in the wallet then it is difficult for hackers to access your bitcoin information and wipe it off. The only scenario is when a bitcoin owner clicks a phishing link and provides all three multi-factor security information to a website/wallet that is not authentic. Therefore, it is important that when you open a wallet, you make sure it is authentic. For example, MYETHERWALLET LLC (US) would be displayed on the left hand side confirming the certificate of the wallet. If it is not displayed then the User Interface is a phishing site. Do you have Bitcoin address and transaction ID? If yes, you can find “ethical” hackers who could trace the malware at a percentage of the recovered value. If you have mistakenly entered the information on a phishing UI wallet then, I am afraid, it is gone, mate. So sorry.
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    Re: What is Cryptocurrency?

    Shami Sahib, I am very sorry to learn about your loss. It absolutely stinks mate to loose even a bit of your wealth no matter what form it is in. So sorry. Did you reinstall the OS (MS/Unix/Linux, Apple macOS..etc)? You need to have multi-factor security information on your wallet related to your peers, a password, and a private key generated every transaction to conduct a successful trade/invest/exchange. Most of the times, a collaboration software such as teamviewer, skype, Lync etc, is hacked with a phishing link, which if collects accesses the computer to download the information. But if you have not stored your password and/or private key in the wallet then it is difficult for hackers to access your bitcoin information and wipe it off. The only scenario is when a bitcoin owner clicks a phishing link and provides all three multi-factor security information to a website/wallet that is not authentic. Therefore, it is important that when you open a wallet, you make sure it is authentic. For example, MYETHERWALLET LLC (US) would be displayed on the left hand side confirming the certificate of the wallet. If it is not displayed then the User Interface is a phishing site. Do you have Bitcoin address and transaction ID? If yes, you can find “ethical” hackers who could trace the malware at a percentage of the recovered value. If you have mistakenly entered the information on a phishing UI wallet then, I am afraid, it is gone, mate. So sorry.

    It is quite sad that there is zilch government policy information on virtual/crypto currencies in Pakistan. I have learnt from many SBP officials who visited recently for refresher courses that SBP has highly qualified professionals and experts who can manage these new payment methods however, lack of technical and financial acumen at legislative bodies have been the main pull-back that kept them from working on this matter with SBP/SEC payment advisers. Some of the issue for regulators, which has repeatedly been mentioned in such discussions is to define what it is in financial terms (is it a money, commodity, tangible collateral in lieu of services or goods). Secondly, bitcoin and its transaction can be traced on a distributed digital ledger (blockchain a form of internet which facilitates the transaction also records all information in public) but the the owner of a particular BTC wallet could remain pseudonym and hence it is challenging to establish real identity. Thirdly, how to set conversion fees if defined as currency, capital gain tax if defined as asset, what what would be the methods for loss treatments since it is an intangible currency? Last but not least, Sharia Law instruments only work/allow investment/trading/exchange with tangible currency or asset. Ulema of CII need to be involved to get any legislation/regulation approved.

    @lovelyday   Saahib,

    This is wealth of information. With such digital encryption, I wonder how inheritance issues are / will be dealt?

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    Re: What is Cryptocurrency?

    Wishing happy new year and season greetings GP Sahib, Sorry,  I couldn’t get back to you earlier. Just got held up last week and was waiting response from friends and their take on how inheritance would work with Bitcoin or other crypto-currencies. One Ministry of Finance/Revenue/Economic Affaris official who is preparing for final exams of his Masters in Finance at Melb Uni, was of the opinion that Pakistan has no official policy for Crypto currencies and it is not considered as a legal form of wealth yet. The anonymity feature of digital/crypto currencies to protect the owner identity during trade or exchange, makes it more looks like a ponzy scheme rather than a tangible legal tender and hence ownership/exchange/trading will be viewed as a fraud by legal authorities. He mentioned that recently there have been some news articles in Pakistani print media which highlighted the view of crypto currency as a mean for money-laundering. Furthering his assumptive notion, he does not see bitcoin/crypto currency can not be processed under Pakistan inheritance laws. He also mentioned that since crypto currencies are a public domain based open systems operational on global scale therefore government will have no monitoring and control over not just financial transactions but also how ownership of funds can be established and transferred. Alot of work needs to be done on this front in Pakistan specially when China and Japan are leading the way with their own digital currencies. I have received guidance from other friends as well who work in financial institutions. 

    1. Digital Inheritance is a non-issue if a county/state legally accepts crypto-currency as a formal tender. Usually all crypto-currencies come with a contract which has clauses relevant to transfer of ownership of assets. These clauses can be used for setting up inheritance, time period for transfer or change of ownership. 
    2. In Bitcoin Contract, section 4 – Using External State is used. This section can be used to develop a customized piece of software for the owner who then can execute it on public server known as Oracle (a trusted party which maintain public ledger). It is similar to setting up a will. 
    3. In the above link in section 4, there is an example where a grandfather wants his child to inherit his wealth with two conditions. One, if he dies and two, if his grandson turns 18, whichever comes first. The method given is commonly used for inheritance of digital currencies. 
    4. If nothing works, then, I have been guided to ensure availability of multi-factor security information (user name, passwords usually in the form of mnemonic , public and private keys, electronic-wallet IDs and Addresses) and transaction history for the successor such as spouse, children or legible party. 
    5. To help avoid post transfer ownership issues, it is recommended that inheritance of digital wealth is set such that each party has its own private key and amount specified that will be inherited. 

    I have found a website of PakCoin – Crytocurrency which uses blockchain technology as well. I have to dig in more to see what these people are doing and how it is working in Pakistan. But certainly, it looks like, not to anyone’s surprise, Pakistan businesses are not unaware of global trends. 

    #11
    shami11
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    Re: What is Cryptocurrency?

    Can you suggest what would be the next best digital currency in few years time? Or which one would be the best to invest in right now? Few of my friends are always talking about start mining the coins, but I think it is rather waste of time as you can pick the best one by looking at the current stats and invest in modesty so if you lose it won’t hit you bad.

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    Lovelyday
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    Re: What is Cryptocurrency?

    shami11 sahib, thank you. I will gladly provide the information after getting my understanding verified with two friends who work at ANZ and Commonwealth Banks and are quite knowledgeable about these currencies. Wishing you happiness and health in 2018.

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    Re: What is Cryptocurrency?

    Wishing happy new year and season greetings GP Sahib, Sorry, I couldn’t get back to you earlier. Just got held up last week and was waiting response from friends and their take on how inheritance would work with Bitcoin or other crypto-currencies. One Ministry of Finance/Revenue/Economic Affaris official who is preparing for final exams of his Masters in Finance at Melb Uni, was of the opinion that Pakistan has no official policy for Crypto currencies and it is not considered as a legal form of wealth yet. The anonymity feature of digital/crypto currencies to protect the owner identity during trade or exchange, makes it more looks like a ponzy scheme rather than a tangible legal tender and hence ownership/exchange/trading will be viewed as a fraud by legal authorities. He mentioned that recently there have been some news articles in Pakistani print media which highlighted the view of crypto currency as a mean for money-laundering. Furthering his assumptive notion, he does not see bitcoin/crypto currency can not be processed under Pakistan inheritance laws. He also mentioned that since crypto currencies are a public domain based open systems operational on global scale therefore government will have no monitoring and control over not just financial transactions but also how ownership of funds can be established and transferred. Alot of work needs to be done on this front in Pakistan specially when China and Japan are leading the way with their own digital currencies. I have received guidance from other friends as well who work in financial institutions.

    1. Digital Inheritance is a non-issue if a county/state legally accepts crypto-currency as a formal tender. Usually all crypto-currencies come with a contract which has clauses relevant to transfer of ownership of assets. These clauses can be used for setting up inheritance, time period for transfer or change of ownership.
    2. In Bitcoin Contract, section 4 – Using External State is used. This section can be used to develop a customized piece of software for the owner who then can execute it on public server known as Oracle (a trusted party which maintain public ledger). It is similar to setting up a will.
    3. In the above link in section 4, there is an example where a grandfather wants his child to inherit his wealth with two conditions. One, if he dies and two, if his grandson turns 18, whichever comes first. The method given is commonly used for inheritance of digital currencies.
    4. If nothing works, then, I have been guided to ensure availability of multi-factor security information (user name, passwords usually in the form of mnemonic , public and private keys, electronic-wallet IDs and Addresses) and transaction history for the successor such as spouse, children or legible party.
    5. To help avoid post transfer ownership issues, it is recommended that inheritance of digital wealth is set such that each party has its own private key and amount specified that will be inherited.

    I have found a website of PakCoin – Crytocurrency which uses blockchain technology as well. I have to dig in more to see what these people are doing and how it is working in Pakistan. But certainly, it looks like, not to anyone’s surprise, Pakistan businesses are not unaware of global trends.

    Happy New Year and Seasons greeting to you as well @Lovelyday saahib,

    Can’t thank you enough for digging all this gold class information for fellow members. I am still trying to roll my head around this concept of crypto currency. One of my friend has been trying to sell leo coins ( a joint venture of a Pakistani British young man and his partner) to me. He tried to convince me that leo coins, will be next big thing in coming years, but I felt it as much ponzi scheme as it could be and never invested in them.

    Still, I m of the view that world will learn its lessons through cycle of pain-gain-pain. Few will make fortune out of it and few will lose. Do I want to invest my money in it? I am not sure.

    #14
    shami11
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    Re: What is Cryptocurrency?

    کراچی(نیوزڈیسک)یوکرین میں اغوا کاروں نے برقی کرنسی بٹکوائین کی خریدوفروخت سے وابستہ ادارے کے مغوی کارکن کو 10لاکھ ڈالر سے زائد مالیت کے بٹکوائین تاوان لے کر رہا کر دیا ہے۔غیرملکی میڈیا کےمطابق ای ایکس ایم او فنانس نامی کمپنی نے بتایا کہ ان کے ایک سینئر ماہر پاویل لرنر کو 26 دسمبر کو نامعلوم نقاب پوشوں نے اغوا کیا تھا، کیف میں وزارت داخلہ کے ایک مشیر انٹون گراشچنکو کے مطابق بٹکوائین سے متعلق یوکرین میں یہ اپنی نوعیت کا پہلا معاملہ تھا، تاحال یہ واضح نہیں ہو سکا ہے کہ یہ تاوان کس نے ادا کیا۔

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