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Debunking top 3 myths about cryptocurrencies in Pakistan

08:39 PM | 29 Apr, 2023
Debunking top 3 myths about cryptocurrencies in Pakistan

Investing in cryptocurrencies is a hot topic of discussion in Pakistan. Pretty sure that if you have looked into diversifying your investment portfolio at some point, you would have come across different opinions and different sentiments regarding the same. But are these assumptions about cryptocurrencies primarily based on facts or myths? 

In this article, we will discuss 3 most popular myths we have heard in Pakistan about investing in cryptocurrencies like Bitcoin and ethereum and debunk them with fact checks. So if you are interested in learning more about a highly dynamic and lucrative investments option, keep reading!

Myth 1 - Cryptocurrencies are a bubble waiting to burst

Crypto skeptics have believed this since the inception of Bitcoin. But are cryptocurrencies really a fluke? The facts, market trends, and the cryptocurrencies growing adoption rate (in the recent years) suggest otherwise. Major international banks, including JPMorgan and Goldman Sachs, have started offering cryptocurrency trading services to their customers. Large corporations, such as Visa, Mastercard, PayPal, and Tesla, have integrated cryptocurrencies into their payment systems, making them easier to use for everyday transactions. These developments indicate that cryptocurrencies are becoming more mainstream and are being increasingly embraced by traditional financial institutions. 

So it is safe to say that cryptocurrencies are not a bubble that will burst. Sure, the crypto market is new and evolving, which makes it a volatile investment option, compared to other traditional approaches, but that doesn’t mean you cannot benefit from it. With careful research and proper planning, cryptocurrencies can be a solid commodity in your investments portfolio.

Myth 2 - Cryptocurrencies are only for tech savvy people

One common misconception about cryptocurrencies is that they are only for tech-savvy individuals. However, the reality is that cryptocurrencies are becoming increasingly accessible to the masses. While it's true that there was a time when using cryptocurrencies required a certain level of technical knowledge, this is no longer the case. 

Many cryptocurrency exchanges like Binance have made it easier for people to buy, sell, and trade cryptocurrencies, even with limited technical expertise. Additionally, payment processors like PayPal and Square have integrated cryptocurrencies into their platforms, allowing users to buy and sell them alongside traditional currencies.

Moreover, some companies have created user-friendly wallets, investment apps, and designed comprehensive guides to educate their users about investing in crypto and simplify the process of buying and storing cryptocurrencies. These developments have made the cryptocurrency market accessible to just about everyone so that they can benefit from the potential returns.

Myth 3 - Cryptocurrencies are not a secure investment

Another most common myth that you will hear in Pakistan surrounding cryptocurrencies is that they are not secure. However, the reality is that cryptocurrencies are generally secure because of the underlying blockchain technology. People often confuse ‘not secure’ with ‘decentralized’. Just because cryptocurrencies are not regulated by any government (or decentralized), doesn’t mean that they are not secure. However, like any other investment, they do come with risks that investors need to consider.

To mitigate these risks of scams, unauthorized transactions, or assumed identities, cryptocurrency exchanges and wallets implement various security measures, such as two-factor authentication and encryption protocols.

For example, Binance, one of the largest cryptocurrency exchanges, uses multiple layers of security to protect users' funds, including Secure Asset Fund for Users (SAFU), a reserve fund that provides an extra layer of protection against hacking attempts. 

So, with proper precautions and by using safe crypto exchanges you can secure your transactions and prevent yourself from fraudulent activities.

Because crypto trading is not a widely explored area in Pakistan, there are a lot of misconceptions around it. Some people believe it is a bubble and will burst and vanish, while others believe that it is too complicated of an investment option to explore. While cryptocurrencies do pose some risks (like any other investment option in Pakistan) but with proper understanding of how the market works, you can mitigate the risks and benefit from the rewards.

Daily Pakistan Global Web Desk

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Currency Rates in Pakistan Today - PKR to US Dollar, Euro, Pound, Dirham, and Riyal - 21 April 2024

Pakistani currency remains unchanged against US Dollar and other currencies on April 21, 2024. US dollar was being quoted at 277.5 for buying and 280.5 for selling.

Euro stands at 293 for buying and 296 for selling while British Pound hovers at 342.25 for buying, and 345.65 for selling.

UAE Dirham AED was at 75.20 and Saudi Riyal's new rate was at 73.30. 

Today’s currency exchange rates in Pakistan - 21 April 2024

Currency Symbol Buying Selling
US Dollar USD 277.5 280.5
Euro EUR 293 296
UK Pound Sterling GBP 342.5 346
U.A.E Dirham AED 75.2 75.9
Saudi Riyal SAR 73.3 74.05
Australian Dollar AUD 181 182.8
Bahrain Dinar BHD 740.55 748.55
Canadian Dollar CAD 201 203
China Yuan CNY 38.47 38.87
Danish Krone DKK 39.78 40.18
Hong Kong Dollar HKD 35.53 35.88
Indian Rupee INR 3.33 3.44
Japanese Yen JPY 1.86 1.94
Kuwaiti Dinar KWD 903.11 912.11
Malaysian Ringgit MYR 58.08 58.68
New Zealand Dollar NZD 164.22 166.22
Norwegians Krone NOK 25.61 25.91
Omani Riyal OMR 723.2 731.2
Qatari Riyal QAR 76.45 77.15
Singapore Dollar SGD 204.5 206.5
Swedish Korona SEK 25.31 25.61
Swiss Franc CHF 305.47 307.97
Thai Bhat THB 7.56 7.71

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