Bitcoin’s historic rally: what do investors say?

Bitcoin is part of the wider cryptocurrency that sprung out of the blockchain model in the early 2000s

Bitcoin finally crossed the $100,000 value, the barrier that the coin had been poking at for over a fortnight. The resistance level was at this mark and it is highly likely that a huge number of people were banking on sell orders at this level too. While the Bitcoin investors across the world are having a moment of ecstasy – the joy for the Pakistan’s investors was rather damp, due to the overall regulatory environment, or lack thereof.

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A 24-year-old recent engineering graduate, Azlan, spoke to HUM News English and said, “Not a lot of people in Pakistan would have woken up today to the sounds of the Bitcoin crossing the barrier that I believe everyone was looking forward to, in the last half a decade – $100,000 per Bitcoin. In Pakistan, everything comes late. We are late to tackling climate change, we still have malaria, we still have polio, just as the challenges keep increasing, the opportunities keep going on further. The only solace in all of this is that because the world is such a global place now that some people are able to cash in on the benefits that Bitcoin is providing.

Today I think, some people across Pakistan, despite slow internet, despite lack of regulation to bring that money back to Pakistan – are still going to be joyous that they were able to join the rally and the benefits of the crypto market’s hike. These digital assets are globally traded, and the money earned from that could have been spent in the local market, could have even created a job or two, and could have yielded very tangible benefits into Pakistan’s economy, if given a conducive regulatory environment”.

His sentiments were echoed by Jamal, a resident of Karachi keenly interested in crypto and stock markets. Speaking to HUM News English he said, “While the investment climate has beginning to strengthen across several markets, we can see the same case with the Pakistan Stock Exchange (PSX) as well – the short-term investors have moved towards the crypto market even in Pakistan. There is no regulation that can streamline such investment, so the institutional investors are still wary of the digital currency market.”

The lack of proper regulatory environment and the difficulties in liquidation of any gains made by these trades, seemed to be the common thread among those dabbling with the cryptocurrencies in Pakistan.

“Bitcoin crossing $100,000 is more than just a milestone; it’s a testament to shifting tides in finance, technology, and geopolitics…The figure not that long ago dismissed as fantasy, stands as a reality.”

Reuters

A surgeon, Abdur Rehman, told HUM News, “Bitcoin crossed the $100k barrier this morning, and by the time someone will read [this article], it might have gained another few thousands. Let’s not talk about who won and who lost, the question right now is that is it going to be another of those revolutions that we are late for. Cryptocurrency is still unregulated in Pakistan. We are losing business to places like the US, EU and even Dubai, because people who understand these markets are being barred here due to the misunderstanding or the lack of understanding by the regulators. We still face troubles in transferring the money made in these markets into our markets.”

He said that it is more a question of the collective rather than the individual. “The people who are using this market to get benefit out of it, and can actually bring that benefit to Pakistan’s market as well don’t have a venue to make that happen. I think we ought to do better, as a country, that facilitates investors. We need to reflect, on days like today, that what should we do so we are not the last ones in the world to adopt this technology as well, and what can we do to be ahead of this curve rather than being miles behind it.”

Even those Pakistanis who have found legal ways to dabble with the cryptocurrency are now voicing the same concerns as their local counterparts, citing a significant lack of liquidity in the market.

A businessman operating from Pakistan and Dubai, Adnan, told HUM News that the investors can make money when the market is going up and when it’s going down. “Take-Profit and Stop-loss options help you not just capitalise on profits but also cut your losses, so as opposed to the impression that it is monumentally risky, it is actually quite digestible. Of course, it’s a market that works on expectations and up and down movements, so the trading risk is there, but the lack of awareness makes it seems so much scarier than it really is.”

Sharing his experience on how easily acceptable and transferrable the cryptocurrency is in Dubai, and how drastically opposite it is in Pakistan, he said, “It is just a tragedy that Pakistan still refuses to embrace this inevitable reality of the future trading. I have business interests in Dubai and spend half my time there, which allows me to seamlessly invest and withdraw from the cryptocurrency market. But for those who operate from within Pakistan, there is an additional layer of risk whereby they need to first get their investments in the USDT before they could even buy the digital currency.”

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He said, “Pakistan has made significant progress in curbing hawala and hundi practices, yet the persistent rigidity of regulators is inadvertently creating new avenues for these illicit activities to thrive. The same regulatory hesitance is now obstructing the proper framework needed for cryptocurrency investments, potentially driving capital into unregulated channels.

The dominance of cryptocurrency on the global investment landscape is undeniable. Regardless of whether Pakistan chooses to embrace it, Bitcoin and other cryptocurrencies will inevitably continue to gain popularity. The question now is not ‘if’ but, ‘how’ Pakistan will adapt to this evolving financial reality.

*Last names have been omitted to protect privacy of the people who spoke to HUM News English.