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 than 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.
Dis you notice how many middleman 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 vegetables? The farmer is getting only four percent benefit while those middle men 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 principal of block chain.
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 Wholeseller won’t play any role in selling price. They are now the disrtibutors 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 for vegetables. But let’s generalize the product as a digital content. The content sold by it’s creator will be unique and will be hashed(private encrypted key which are not easily breakable.)
- So the guaranteed products will be bought and sold(hash keys makes it possible)
- 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 a 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 more dense 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 does those budget that government announces every year goes? Why are there huge pot holes in a Highway which should actually be black paved. Why are 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 it’s citizen .
This is when I support bitcoin and do one-to-one transaction and keep the product and its value(give -return) within two body, but not any middlemen(corrupt government in this case)
There are some other reasons which puts me in favor of Using Bitcoin. But there are 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 on some digital currency? - I don’t think we do.
- Do we have a promising Cyber Law that can take full responsibility of digital transactions or the fraud that are probable in future? - I don’t think we do.
- Have we practiced such thing before or even have a bullet proof well researched plans which could give us 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 have in order to browse 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 occuring 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 thing we are not yet ready to adapt any Cryptocurrencies in Nepal.