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To finish your confusion about the bitcoin, I’ll explain bitcoin briefly and efficiently.
What is bitcoin? Bitcoin is a digital or virtual currency. It’s not like our local bank’s currency which is stored physically in the bank’s safe.

So, it means that bitcoin isn’t some sort of paper money?

Yes, correct! It’s not paper money and it’s not being controlled by bank or the government. It’s decentralized which means it’s not owned/controlled by someone specific.

As I said that it’s not controlled by someone, so how does it works? And who verify or manage the transaction which occur through bitcoin?

Before we further go into topic make sure you understand the following.

or watch the complete video (Recommended) below.

You will learn the following in this article:

How bitcoin works?

It’s a good question, let me answer: So bitcoin transactions are transparent and cannot be traced by anyone.
The Next Question: Bitcoin is verified by a group of CPU power which run a free software and that process is known as mining.

What is bitcoin mining?

You must have heard about mining? If not, mining is a simple process in which a computer is being run by a software which verifies all these transactions occurring using bitcoin.

But why would someone run their computer for free to verify bitcoin transaction?

The plain answer to the question is that one who mines bitcoin get rewarded in form of bitcoins to their bitcoin wallet.

What is bitcoin wallet?

Now let’s talk about bitcoin wallet, it’s not like your traditional wallet which can be kept in your pocket. Instead it is a digital string which stores all your coins.

The string looks something like this: 327WYfUiZmNnxiJnoUgv8DRkr9QwMRJsRp

If you want someone to send money to your bitcoin wallet, you have to send them this address. You will get this address once you create bitcoin wallet.

You can create bitcoin wallet in Pakistan and bitcoin wallet in India. To get better understanding watch the above video about making bitcoin account in Pakistan.

With Bitcoin wallet you can send and receive money with lower fees than local banks. Bitcoin is held in digital form and are not printed like dollar and rupees and other currencies which are used by traditional banks.

Info graphic Showing Benefits of Bitcoin in Text

Who founded bitcoin? Idea behind bitcoin.

Bitcoin was formed in 2008, as the idea which was presented by it’s so called founder “Satoshi Nakamoto”. He’s not verified and he is a software developer and here what Google tell us about the founder of bitcoin.

Google Search About Bitcoin Owner when searched in Google

As you see, his information and identity haven’t been verified yet. His birth date and place has a small tag of being (claimed).

So, from where Mr.Satoshi Nakamoto idea of bitcoin came?
I found this whitepaper of him in PDF on the internet and I’ll share the whitepaper (PDF File) with you which shows the idea Satoshi Nakamoto related to bitcoin.

Download the PDF Bitcoin Founder White Paper here.

WhitePaper First Page of Bitcoin Idea-page-001
Source: Public Archives

At the end of the article, I add some keynotes which you can remember to have better understanding about bitcoin. And I also want tell you that even if bitcoin transactions are not traceable, Law enforcement has found various methods to identity the sender and receiver of bitcoin.

Is bitcoin legal in Pakistan? If no, why it’s banned.

Although bitcoin is legal in many countries but unfortunately bitcoin is banned in some area such as Pakistan. It’s banned because it may cause money laundering as it can be traced by anyone.

If you have more questions about bitcoin, I’ll list few topics and you can watch videos on my YouTube channel to get more knowledge about bitcoin.

How bitcoin value works?

I know you must have one last question about How bitcoin is valued?

So, it’s not like our traditional central bank which can issue as much currency as they need.

Bitcoin is digital and can’t be lost as it’s not paper money.

And Bitcoin cannot be manipulated by central banks which the consumer has to bear the cost as the value decreases. 

Image showing how money is manipulated
Source: Medium (Tony Fratto)

The supply of bitcoin is controlled by algorithm. And every hour tickle of bitcoin is produced until it reach it’s limit which is 21 (twenty one) million. And this makes bitcoin an interesting asset to keep. If bitcoin demand increase and the supply remain same the value of bitcoin increases.

So, if a bitcoin which buys bitcoin in huge amount and gets to keep it and still some other companies are looking to buy more bitcoin the value of the bitcoin increases.

Key points

  1. Bitcoin’s early launch was in 2008 while officially it was launched in 2009.
  2. The idea behind bitcoin was from the whitepaper issued by Satoshi Nakamoto.
  3. Bitcoin is not like paper money, it’s digital money.
  4. Bitcoin’s value changes with the increase or decrease in supply and demand.
  5. It was the first Cryptocurrency which raise and other Alt-coin were emerged from bitcoin.

FAQ’s 

How to make bitcoin account in Pakistan?

Image showing the Bitcoin Account Address for Sending Bitcoins

Here are 6 simple steps to create bitcoin account in Pakistan.

1. Go to LocalBitcoins.com
2. Sign Up and fill all the details required on LocalBitcoins.com Sign Up form.
3. You will be asked to enter First and Last Name, Your Email, Password and Phone Number.
4. Go to your email and you will find a verification email, open the email and click the verification link to verify your bitcoin account in LocalBitcoins.com
5. Now you will be asked to verify your Phone Number, an SMS will come to your mobile with a verification code like “12xx34xxx”, enter it into the verification box for sms in the Bitcoin Account.
6. Your wallet is now created, click on the wallet in the Top-Right menu and then look for Receive Bitcoins. You will find your Bitcoin Wallet/ Bitcoin Account Address. With that address people can send you bitcoins.

How to invest in bitcoin in pakistan?

Follow these 4 awesome steps to invest in bitcoin in Pakistan.

1. Create Bitcoin Wallet at LocalBitcoins.com
2. Create CashMaal Account at CashMaal.com
3. Desposit Money in CashMaal Account.
4. Withdraw Bitcoin in your Bitcoin Wallet.

Once, you have bitcoins in your bitcoin wallet, you can wait until the bitcoin rate goes up and then sell bitcoins. This way you have invested in bitcoins and got profit. If the rate decrease don’t sell bitcoins because your investment will be in loss.

Can we buy Bitcoin in Pakistan?

Yes, you can buy bitcoin in Pakistan from Various exchangers and if you are looking for something trusted you can use Cashmaal. Which helps you in getting bitcoins to your wallet. You can pay Cashmaal via your bank or Jazz Cash or Easypaisa.

Can you sell bitcoin in Pakistan?

Yes, you can sell bitcoins in Pakistan. There is an instant way to sell bitcoins rather than waiting for local trades.

1. Create CashMaal Account
2. Deposit Bitcoins to your CashMaal account from your bitcoin wallet.
3. Withdraw bitcoins in your local currency to your Bank, JazzCash or EasyPaisa.

Best Bitcoin wallets in pakistan?

Following are the most trusted and reliable bitcoin wallets in pakistan.

1. LocalBitcoins
2. Coinbase

These are the best wallet for Pakistanis to store their bitcoins.

How to mine bitcoin in Pakistan?

image showing nicehash miner software

To mine bitcoin in Pakistan. There are simple steps to follow.

1. Create Account in NiceHash
2. Download NiceHash Miner Software. And make sure you have AMD/Nvidia Graphics Card.
3. Install and Run the Nicehash Miner Software.
4. Enter your bitcoin wallet address. Which you can find in your bitcoin account.
5. Press start mining, it will verify your hardware and mining will start.

Is Bitcoin available in Pakistan?

No, currently bitcoin is not available in Pakistan because it was banned on 7 April 2018 by the State Bank of Pakistan.

I have bitcoin how do i sell it?

You can easily sell bitcoin to Cashmaal. CashMaal is a bitcoin exchanger they buy and sell bitcoins.

How to buy bitcoin in India?

You can buy bitcoin from CashMaal and pay via your bank or PayTM Account.

How to make bitcoin wallet in India?

Here are 6 simple steps to create bitcoin account in India.

1. Go to LocalBitcoins.com
2. Sign Up and fill all the details required on LocalBitcoins.com Sign Up form.
3. You will be asked to enter First and Last Name, Your Email, Password and Phone Number.
4. Go to your email and you will find a verification email, open the email and click the verification link to verify your bitcoin account in LocalBitcoins.com
5. Now you will be asked to verify your Phone Number, an SMS will come to your mobile with a verification code like “12xx34xxx”, enter it into the verification box for sms in the Bitcoin Account.
6. Your wallet is now created, click on the wallet in the Top-Right menu and then look for Receive Bitcoins. You will find your Bitcoin Wallet/ Bitcoin Account Address. With that address people can send you bitcoins.

How to make bitcoin account in India?

Here are 6 simple steps to create bitcoin account in India.

1. Go to LocalBitcoins.com
2. Sign Up and fill all the details required on LocalBitcoins.com Sign Up form.
3. You will be asked to enter First and Last Name, Your Email, Password and Phone Number.
4. Go to your email and you will find a verification email, open the email and click the verification link to verify your bitcoin account in LocalBitcoins.com
5. Now you will be asked to verify your Phone Number, an SMS will come to your mobile with a verification code like “12xx34xxx”, enter it into the verification box for sms in the Bitcoin Account.
6. Your wallet is now created, click on the wallet in the Top-Right menu and then look for Receive Bitcoins. You will find your Bitcoin Wallet/ Bitcoin Account Address. With that address people can send you bitcoins

What is CashMaal?

CashMaal is a trusted exchanger, through which you can instantly buy and sell bitcoins.

Is Cashmaal trusted for Bitcoins?

Transaction for Purchase of Bitcoin Through CashMaal

Yes, CashMaal is trusted for Bitcoins. I have purchased bitcoins from Cashmaal. I have attached screenshot of the purchase. You can give it a try by buying 5 USD bitcoins from CashMaal.

Does has bitcoin atm in pakistan?

No, Bitcoin doesn’t have ATM anywhere. And none in Pakistan. Bitcoin is a digital currency and it’s stored in bitcoin wallet.