Hi, friends I am again back with 5 most asked questions about cryptocurrency. We have doubts about many things related to cryptocurrency. I am going to address them with the simplest answer. There are so many hidden facts about cryptocurrency that we will know.


Although cryptocurrency is not legalized all over the world, it is the topmost concern for people around the world. I will answer the top 5 questions about cryptocurrency which should be understood by the cryptocurrency investor and learner.

What do people ask most about Cryptocurrency?

People often get confused about cryptocurrency due to its dynamic and unphysical presence. It is legal in different countries now. People are trading and doing transactions in cryptocurrency. The presence of cryptocurrency in the international market creates different questions in our minds too. Here are the most asked questions about cryptocurrency.

  • What is the reason behind fluctuating crypto prices?
  • Who should invest in cryptocurrency?
  • Are the cryptocurrency earnings taxable?
  • How can we invest in cryptocurrency?
  • Is crypto a future currency of a scam?
These are some relevant question that creates doubt on cryptocurrency. If you are going to invest in cryptocurrency then you must know these 5 most asked questions about cryptocurrency. Not only I am going to answer these questions I am giving you the proper insight related to the aspects of cryptocurrency.

What are the factors that affect cryptocurrency prices?

Yes, you know the price of cryptocurrency fluctuates highly. Fluctuations are never predictable but there are some factors that I have discovered which affect cryptocurrency price. This is one of the most asked questions about cryptocurrency.

Demand and Supply

Demand and supply are the major reasons behind the fluctuating price of cryptocurrency. The value of a bitcoin was 1 dollar in 2011. Now it has the value of 64 thousand dollars per bitcoin. It's all because of the increase in the demand for bitcoin with the limited supply.


Bitcoin and other cryptocurrencies were not recognized earlier due to their fresh entrance into the market. Later on, the people loved the usefulness and the pros of using cryptocurrency which resulted in an increase in the value of cryptocurrency. 

The value falls when people experience no usefulness and creates less demand for it.

When the big brands like Pavallion group of hotel, Microsoft, Coca-Cola, and Starberg started accepting the cryptocurrency like bitcoin then its value increased gradually.

Cost of Production

The cost of production affects each and every product that we consume. Bitcoin is also like a product and when its cost of production increases the value or price automatically increases. When the awareness of cryptocurrency develops the interest of people towards it then the mining also increases. Finally, security also increases and value hikes.

Rules and Regulations

Rules and regulations of the country also help in increasing and decreasing the price value of cryptocurrencies like bitcoin. We can take the example of India. When the concerned authority guaranteed the transaction of bitcoin is legal on March 24, the bitcoin's price was boosted instantly.

Media and Influence

When any influencer talks about something, the follower starts making discussion about that and wants to do like that. After law allows the cryptocurrency and bitcoin activity media becomes active which boosts the demand for cryptocurrency.

Who should invest in Cryptocurrency?

You must be thinking that it's the easiest question. Everyone should invest. Most rational cryptocurrency investors ask these questions. But the scenario is that one must understand the nature of investment and your expectation. 

If you are planning to relay your livelihood on the cryptocurrency earning just then you should not invest. Or if you are expecting to be rich overnight then you shouldn't again enter here.

You can take cryptocurrency as a part of your portfolio. You can diversify your portfolio by investing in bitcoin and so on. If you are investing some of your earnings in the stock market, some in mutual funds, some in fixed deposits then why not add cryptocurrency to your portfolio?

Are the earnings from cryptocurrency taxable?

If the particular government has approved the trading of cryptocurrency in the country then it somehow depends upon the laws made by the concerned authorities. But the country which has already made cryptocurrency legal is still working without proper taxation policies on cryptocurrency.

Crypto taxation is always an unanswered question about cryptocurrency. The nature of cryptocurrency is volatile so making a tangible taxation policy is still left as a huge task. 

We cannot find any specific guidelines on the taxation of cryptocurrency in most of the country although it is treated as the earning from stock and other investments by laws.

Cryptocurrency is still illegal in Nepal. Problems in taxation are one of the major reasons why the cryptocurrency is illegal in Nepal? But the interest of people in investing in cryptocurrency is high.

How can we invest in cryptocurrency from Nepal?

As per the Nepal Rastra Bank, investing in cryptocurrency is restricted and it does not emphasize investing in cryptocurrency. This is the fact about cryptocurrency, investing here needs more knowledge and risk-taking power. 

This is totally illegal in Nepal. No regulations and guidelines are made on behalf of cryptocurrency investment.

 Is cryptocurrency the currency of the future or a scam?

The future of cryptocurrency in Nepal is yet to be finalized by the concerned authorities. We can not see the future but can feel the indications. The way people are loving the world of cryptocurrency indicates that this is the future of money and transaction. It was started growing in foreign since 2009 but we are giving our interest in 2021 which means it takes time to grow. 

If cryptocurrency was a scam it would never run for many years being accepted by the big brands like Coca-Cola, Tesla, Amazon, and PayPal.

It is going towards acceptability. It is working with the most advanced and reliable technology that is blockchain technology. Blockchain is the future of technology and cryptocurrency is using it. We can trust cryptocurrency due to such strong reasons.


I hope I gave the answer to the 5 most asked questions about cryptocurrency properly. Before you start investing in any sector consider the different factors related to it. I suggest you invest in a diversified manner and strengthen your portfolio. Dunt rush in gaining profit. People does maximum mistakes by not listening to themself. You need to know your ability of risk-bearing before you invest in a sector like bitcoin.

Before you go,