Within the wake of the cryptocurrency increase, Waqar Zaka emerged as a cryptocurrency advocate and started utilizing his social media affect to demand the legalization of Bitcoin in Pakistan with an ongoing hashtag pattern – #cryptokolegalkaro. The well-known ‘Dwelling on the sting’ host has since gone on to determine a crypto mining operation in London, promoted a controversial cryptocurrency – Onecoin, and established a paid Fb group to help aspiring crypto traders with the so-called “buying and selling alerts.”
Learn Extra: #CryptoKoLegalKaro traits in Pakistan as folks urge PM to legalize crypto.
Waqar Zaka additionally filed a petition within the Supreme courtroom to legalize cryptocurrency in Pakistan whereas additionally crediting himself for the legalization of cryptocurrency in KPK. Nevertheless, considered one of his current statements consists of claims that Pakistan may have grow to be a debt-free nation in December 2020 had the federal government chosen to take a position Rs. 1 crore (10 million) in Bitcoin in April 2016.
In a YouTube video titled, “Waqar Zaka ROCKED | Authorities Shocked,” he referred to as it a once-in-a-lifetime alternative and that the federal government had missed this golden likelihood of releasing the nation of its debt. Waqar Zaka made a comparability of the Bitcoin costs between each durations and used the 100% achieve within the forex’s valuation as a foundation of his declare.
Farooq Baloch, a enterprise journalist at SAMAA Digital, has disproven Waqar Zaka’s declare with a math-based factual evaluation. The journalist analyzed a number of situations primarily based on the value quoted by Waqar Zaka to see whether or not shopping for Bitcoin at that worth may have resulted in a revenue substantial sufficient for Pakistan to repay its debt.
Learn Extra: Crypto to be legalized in Pakistan if the federal government fails to answer to Waqar Zaka’s petition.
1- Shopping for Bitcoin at $268 for 1 crore PKR
The Bitcoin was priced at 1 BTC = $268 in April 2016, which reached $5,310 in March 2020. Nevertheless, the greenback worth in April 2016 was $1= Rs. 105/-. Shopping for Bitcoins on the costs in 2016 would imply Pakistan may buy 356 BTC 35, for Rs.1 crore or $ 95,238, contemplating the change price.
However, 356 BTC X 5,310 (Bitcoin’s worth in 2020) = a revenue of solely $1.9 million, not even near the large quantities Pakistan owes to overseas entities, together with the IMF. In keeping with Farooq Baloch, Pakistan’s debt stood at $70 billion, and the Bitcoin income Pakistan may have made characterize solely 0.03% of that quantity.
Other than the timeline given by Waqar Zaka, even when we bear in mind the Bitcoin costs in Dec 2020 or Feb 2021, the ensuing income nonetheless fall in need of Pakistan’s whole debt.
2- Shopping for Bitcoin at $268 for 1 billion PKR
Since Waqar Zaka had additionally instructed investing a bigger quantity to generate higher income, one other state of affairs was additionally examined. As soon as once more since 1 BTC = $268 on April 2016 and $1= Rs. 105/-, Pakistan may have bought 35,537 BTC for Rs. 1 billion contemplating the change price of Rs.1 billion = $9.5 million at the moment.
However, contemplating 35,537 BTC X $51,500 (Bitcoin’s worth in Feb, 2021) = a revenue of solely $1.eight billion, representing a mere 2.5% of Pakistan’s debt.
Waqar Zaka’s concept of utilizing Bitcoin investments to repay Pakistan’s debt just isn’t supported by primary math, even within the best-case state of affairs. It might look like possible if we contemplate bigger quantities resembling $10 billion or $100 billion. Nonetheless, it won’t be attainable for a authorities to take a position such huge quantities of taxpayer cash in a risky digital forex that has but not seen full acceptance worldwide.
In keeping with Farooq Baloch, Waqar Zaka declined to touch upon the findings and said that he had answered these considerations a number of occasions.
To know Blockchain, Bitcoin and the way to purchase/promote them in Pakistan, learn our detailed guides on Cryptocurrency on this part.
Supply: SAMAA Digital