At the beginning of 2025, nearly 25,000 people in Pakistan reportedly lost their savings overnight after investing in a fake trading platform known as “Whale International.” The platform promised fast wealth through crypto trading — but within a single night, it disappeared along with people’s money.
In India, during just the first five months of the same year, online scams worth approximately 7,000 crore rupees (around $840 million) were reported. When we carefully analyze these scams, one common element appears repeatedly: cryptocurrency.
This raises serious questions. Why are people in Pakistan and India so attracted to crypto? Does cryptocurrency truly offer a path out of poverty? Or is it simply another high-risk financial trend wrapped in digital glamour?
Why Is Crypto So Attractive to Young Populations?
Pakistan has a very young population — nearly 60% are under the age of 30. With limited job opportunities, rising inflation, and economic pressure, many young people are searching for quick financial breakthroughs.
India faces similar enthusiasm despite strict taxation rules. Profits are taxed heavily, and TDS deductions apply. Yet even with these challenges, an estimated 110 million Indians hold crypto wallets.
The dream is simple: financial freedom, fast returns, and independence from traditional systems.
The Mysterious Origins of Cryptocurrency
Cryptocurrency began in 2008 with the launch of Bitcoin by a person or group using the name Satoshi Nakamoto. However, the real identity behind this name remains unknown.
This mystery has fueled countless theories. Supporters describe Bitcoin as a decentralized, tamper-proof system operating without government control. Transactions are recorded on a blockchain ledger, visible yet pseudonymous.
The word “crypto” itself comes from the Greek language, meaning hidden or secret — referring to cryptographic security, not secrecy of purpose.Conspiracy Narratives Around Crypto
Conspiracy Narratives Around Crypto
Over the years, several conspiracy theories have developed around cryptocurrency.
One theory claims powerful global financial elites would never allow a system to grow without their involvement. Another suggests digital currencies could eventually be used to control financial access — freezing funds or tracking transactions.
A third idea connects crypto to the broader discussion around Central Bank Digital Currencies (CBDCs). Governments worldwide are exploring their own digital currencies. Some fear that once finance becomes fully digital, monitoring and control could become easier.
However, it is important to separate speculation from evidence. While digital finance does increase transparency and traceability, cryptocurrencies like Bitcoin were originally designed to operate independently from central banks.
How Do People Actually Make Money in Crypto?
There are generally three main methods:
- Mining – This requires high investment, electricity, and technical infrastructure. It is not practical for most individuals.
- Staking or Lending – Some platforms offer returns for locking crypto assets. However, these involve financial risks and, in some interpretations, may raise religious concerns related to interest.
- Trading – The most common method. People buy at lower prices and sell at higher prices. But price movements are often driven by market sentiment, hype, and speculation rather than tangible economic productivity.
This makes crypto markets highly volatile. Prices can rise sharply — and fall just as quickly.Is Crypto Investment or Speculation?
Is Crypto Investment or Speculation?
From an Islamic finance perspective, some scholars argue that cryptocurrency could be permissible if used as a legitimate medium of exchange with real utility.
However, if the primary intention is rapid profit through speculation — without underlying productive value — it begins to resemble gambling behavior.
The cases of large-scale scams show that lack of regulation, poor financial literacy, and emotional decision-making create vulnerability.
The Bigger Question
Cryptocurrency itself is a technological innovation. Blockchain technology has real-world applications in finance, supply chains, and digital identity.
The real issue is not whether crypto exists.
The real issue is how people use it.
Are individuals studying the risks? Are they investing responsibly? Or are they chasing overnight wealth driven by hype and social media trends?
As Daily UpDown highlights, financial success rarely comes overnight. Sustainable wealth is usually built through education, patience, and disciplined decision-making.
The difference between investing and gambling often lies in knowledge, intention, and risk management.
Before entering any financial system — digital or traditional — the most important investment is financial literacy.
FAQ
Q1: Is cryptocurrency legal in Pakistan and India?
Regulations vary. India taxes crypto transactions, while Pakistan has debated regulatory frameworks. Investors should always check current laws.
Q2: Can cryptocurrency make you rich overnight?
Crypto markets are highly volatile. While profits are possible, significant losses are also common.
Q3: What is blockchain?
Blockchain is a decentralized digital ledger that records transactions securely and transparently.
Q4: What are CBDCs?
Central Bank Digital Currencies are digital versions of national currencies issued and controlled by central banks.
Q5: Is cryptocurrency halal?
Scholarly opinions differ. Some allow it if used as a legitimate asset or medium of exchange, while speculation-based trading may raise concerns.
Refrance
https://en.wikipedia.org/wiki/Cryptocurrency
https://en.wikipedia.org/wiki/Bitcoin
https://en.wikipedia.org/wiki/Satoshi_Nakamoto
https://en.wikipedia.org/wiki/Blockchain
https://en.wikipedia.org/wiki/Central_bank_digital_currency