Want to try Bitcoin investment? Note the following facts and risks below - NETRAL'ID

Want to try Bitcoin investment? Note the following facts and risks below

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Wednesday, 24 June 2020

Want to try Bitcoin investment? Note the following facts and risks below

Bitcoin, one of the virtual currency or cryptocurrency that is already traded in various countries, including Indonesia. Even Bitcoin investment is increasingly loved by many people because the price is expected to continue to rise. In order not to misstep, first know the ins and outs of Bitcoin investment.

 Bitcoin was introduced to Satoshi Nakamoto in January 2009. But actually this bitcoin has been there since 2008. Meaning his presence is 10 years. Unfortunately, Nakamoto's identity is unclear and still mysterious until now. It is controlled by open system software, so anyone can do the development of Bitcoin without having to own copyright or request permission in advance.

Starting from there, Bitcoin is used for a variety of transactions, such as the purchase of services such as games and so on. Buying and selling Bitcoin is Marak, so the cryptocurrency is increasingly popular. Many people are fond of Bitcoin because the price continues to soar, although sometimes it also deteriorates. Based on Coinbase, Bitcoin is traded at a price range of USD 4,008 or about Rp58,12 million per coin.

If the price of Bitcoin rises high, its value is very tempting overnight. But if it has gone down, it can be drastic. Bitcoin's price increase is one of the risks of Bitcoin investors. Although often dropped, bitcoin investment is still considered a money mine.

EITs, but do not hurry. Before you plunge into mining profits from cryptocurrency investments, check out the facts and risks of Bitcoin investments:

1. Using Peer-to-Peer (P2P) system

If you are curious about who is the intermediary of a bitcoin transaction, as well as a bank in conventional transactions, then the answer is no. This type of digital currency is a direct transaction tool, because it is called using a Peer-to-Peer system.

Transactions using Bitcoin are mentioned as safe. Because every transaction using Bitcoin will be recorded and verified through a network. Then through cryptographic techniques will be recorded in a public-owned data safe. This storage technology is called blockchain.

The inventor of bitcoin, Nakamoto is fishing people to create another blockchain to keep data from bitcoins intact. For those who create storage technology it will be rewarded with Bitcoin. From there, the number of outstanding Bitcoins increased. The process of making this blockchain is better known as mining or Bitcoin mining which means Bitcoin mining.

2. First transaction Bitcoin: Paying Seloyang Pizza

The first time it was launched, only a handful of people trusted bitcoin. After Nakamoto mined his first bitcoin (known as the Genesis Block), the Bitcoin network officially operated. The first person to download the Bitcoin app is Hal Finney, a computer scientist who is also a cypherpunk (a designation for people fighting for cryptography). He then received 10 Bitcoins from Nakamoto.

However, Nakamoto disappeared after successfully mining a lot of bitcoins, estimated to reach one million copies in 2010. In the same year, a commercial transaction using the first bitcoin occurred. Computer scientist Laszlo Hanyecz bought two pan pizza from Papa John's Pizza store for 10,000 bitcoins.

When multiplied by the current bitcoin exchange rate, Laszlo bought two pizza pan for RP810 billion. That's because the price of bitcoin has increased. When Bitcoins first glide, the exchange rate of Bitcoin against the rupiah is Rp451 per piece.

3. Never used for illegal Online transactions

Initially, Bitcoin was used as the primary payment method for the SilkRoad site, a portal of some kind of buy-and-sell forum for all illegal goods and services. To access the site needs a special browser called TOR Browser.

SilkRoad allows you to obtain illegal goods and services, ranging from firearms, narcotics or illegal drugs, children's pornographic videos, to a hitman service. In order not to be detected by the authorities, sellers and buyers use Bitcoin as a major exchange or payment instrument because Bitcoin uses peer-to-peer systems.

4. Bitcoin inventor Satoshi Nakamoto the mysterious figure

Although the bitcoin application was first registered by Nakamoto, it was a mysterious figure. Until now, no one person knows who is Satoshi Nakamoto. In a forum on the Internet, he once mentioned that he came from Japan. While following the forum, Nakamoto used the TOR Browser, which made its IP address untraceable.

Despite the recognition, Nakamoto did not leave a clear trace or identity. Everybody still find out the figure of the Bitcoin inventor. Some of the users and non-Bitcoin users began to give speculation.

The speculation is that there is no person named Satoshi Nakamoto. The name is used to protect the original Bitcoin creator. In Japanese, Satoshi means wisdom or reason, while Nakamoto can be interpreted as a central source.

5. Potentially triggering the Economic Bubble

Economic experts from all over the country have already analyzed bitcoin as a economical bubble or an economic bubble. That is, a phenomenon, where the price of an item or service is going up drastically, to a very high, and then crushed like a soap bubble blown.

Analysis is not without reason considering the price of bitcoin that has been high uphill. At the beginning of Bitcoin appeared on 2010, a chip of bitcoins to rupiah valued at Rp451. About three years later, it cost about Rp800 thousand per coin. That means in three years, the value of Bitcoin jumped by 177,383% or up 1,773.83 times from its initial value.

Hoses one year later, the price of Bitcoin peaked at a value of more than Rp266 million per piece. That means in four years, Bitcoin is back up by 33,250% or 332.5 times the value in 2013 about Rp800 thousand. The highest point for seven years (2010-2017), the value of Bitcoin skyrocketed 58,980,044% or 589,800.44 times from its initial value of Rp451.

Unfortunately, the growing value of Bitcoin that has skyrocketed has stopped there. After China prohibits the use of Bitcoin as a means of transaction or payment instrument, Bitcoin's value is dropped. Currently, Bitcoin against Rupiah is traded in the range of RP58 million per coin. If many investors are tempted Bitcoin investment, then the price continues to decline, then it can cause economic bubbles that endanger the country's economy.

6. Bitcoin not in the form of commodities or stocks

If you are still interested in investing in Bitcoins or other digital currencies, you should pay attention to the points of this one. Unlike the stock or commodity markets, Bitcoin does not have a clear sales base. This means you're risking your money for something can be worth zero. If you are analogoed, if there are no more people in this world who accept transactions through Bitcoin, then your bitcoins will not be at all.

In other words, the fluctuations in the value of Bitcoin really depend on supply and demand from users who are getting down the day. The difference with stocks or commodities, if the demand is down, you still have real goods in the form of commodities or ownership rights of companies from the stocks you buy. So indirectly, you still have something that has value, unlike bitcoins that could be not worth it.

7. Bitcoin transactions prohibited in Indonesia

Bank Indonesia (BI), the Financial Services Authority (OJK), and the Government confirms that the virtual currency including Bitcoin is not recognized as a legitimate means of payment, so it is forbidden to use as a means of payment in Indonesia.

This is in accordance with the provisions of the law No. 7 of 2011 on currency stating that the currency is the money incurred by the unitary State of the Republic of Indonesia (NKRI) and any transaction that has the payment purpose, or other obligations that must be fulfilled with money, or other financial transactions carried out in the territory of the NKRI obliged to use Rupiah.

The possession of virtual currency, including Bitcoin is very risky and is full of speculation because there is no responsible authority, there is no official administrator, there is no underlying asset underlying the price of virtual currency, and the trading value is very volatile.

Thus, it is vulnerable to the risk of a bubble, and is prone to use as a means of money laundering and financing terrorism, so as to influence the stability of the financial system and harm the community. Therefore, as a monetary authority, BI warns the parties to avoid selling, buying or trading cryptocurrencies.

Think with maturity, the risk you are taking

If you are still investing in virtual currency, including Bitcoins in Indonesia, then in case of unwanted things, it is a risk that you have to take on your own. So before deciding to mine bitcoins, think first with maturity. Don't let you regret it later on. The choice is yours.

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