Previously, for a farmer to sell his vegetables in the market, A whole-seller used to collect vegetable that costs Rs. 50 in 52 rupees from the farm. Whole-seller then sells the vegetable to a dealer who collects all vegetables from many whole-sellers at 55. He then sells the vegetables to our shops nearby in 60 rupees. And different shops sell those 50 rupees worth vegetables at any rate they want. The Price ranges from 65–70.
Did you notice how many middlemen are there who actually play a decent game and earn from the farmer’s product? And what value does a farmer gets for investing weeks to produce that vegetable? The farmer is getting only four percent benefit while those middlemen easily earn 15–20 percent for just speaking.
And also the price margin that exists in our market. A new customer will never know that he is paying 100–200% more.
HOW CAN WE STOP THIS? WHAT KIND OF SYSTEM CAN SOLVE THIS?
BLOCK CHAIN CAN RIP THINGS APART. It can stab those bribers’ heart apart and squash all the middlemen.
BITCOIN is a digital currency which actually runs under the principle of the blockchain.
After using BITCOIN the process for selling vegetable by a farmer will be something streamlined like this:
- Farmer marks its margin say X-Bitcoins
- The Wholesaler won’t play any role in selling price. They are now the distributors and will get money for carrying the good and distributing it to the retailers and shops.
- The cash transaction will be done via Bitcoin.
- And the Product’s quality and quantity will be controlled via BLOCK CHAIN. It mightn’t be cleanly applicable to vegetables. But let’s generalize the product as a digital content. The content sold by its creator will be unique and will be hashed(a private encrypted key which are not easily breakable.)
- So the guaranteed products will be bought and sold(hash keys makes it possible)
- The transaction will be done via Bitcoin so straight transfer will be possible between seller and buyers.
- Sellers selling price will also be publically available on an open journal that is maintained by the BlockChain. So nobody can smart out anybody.
Isn’t it what we all want? But you might ask why bitcoins while we have banks to do so? Then my answer will be like this:
Like in the farmer’s vegetable selling story I mentioned above: even BANKS are some middlemen. And they are legal bodies who are certified to make income from the money that citizens earn from doing hard work. The bank and corporate polities are denser than a spider’s net. Once we are inside it will be hard to escape.
And so are the governments. My only point for supporting BITCOIN as of now is this:
Government is corrupt. We keep paying bills every single month. But where do those budget that the government announces every year goes? Why are there huge potholes in a Highway which should actually be black paved? Why is there no infrastructure of Development (Education Health, Transportation) decentralized to the remote areas?
So why to pay TAX to such government who doesn’t pay back to its citizen.
This is when I support bitcoin and do the one-to-one transaction and keep the product and its value(give -return) within two bodies, but not any middlemen(corrupt government in this case)
There are some other reasons which put me in favor of Using Bitcoin. But there is certainly some downside and some of them are discussed below:
- Do we have in-depth knowledge about Cryptocurrency and what it is?-I don’t think we do.
- Do we know if we can fully trust some digital currency? – I don’t think we do.
- Do we have a promising Cyber Law that can take full responsibility for digital transactions or the fraud that is provable in the future? – I don’t think we do.
- Have we practiced such a thing before or even have a bulletproof well-researched plan which could give us the confidence to give Cryptocurrency a try? – I don’t think we do.
- What percentage of a country’s total population are using internet?-Very Low
- What skill sets those online citizens to have in order to browse the internet? Coz most of the citizens browse facebook and youtube and don’t know how to send an email.
- What are the actions that we will take if any illegal activities like (Drug Smuggling, Child Pornography, Gun Dealing) takes places with the help of Cryptocurrency? First, how can we know if any such activities are occurring online?
- Do we have enough resource, knowledge, plans, and promulgation ready? I don’t think we do.
So for these reasons and some more yet to be listed, I think we are not yet ready to adopt any Cryptocurrencies in Nepal.