What are Bitcoins?
The name bitcoin has long been heard and people are enthusiastically transacting or investing in one of these types of cryptocur…
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The name bitcoin has long been heard and people are enthusiastically
transacting or investing in one of these types of cryptocurrencies.
The profit is so tempting because the increase in its valuation from time to time is so extraordinary.
In
Indonesia itself, there is already a large user base, and several
companies have been established specifically to become bitcoin trading
platforms.
Bitcoin is often considered as a new investment instrument that has the potential to maximize profits.
At this stage, you may already be interested in knowing more about what bitcoin is, how bitcoin works.
Because the ownership can be anonymous, bitcoin is even often used as a
method of money laundering and various other criminal acts.
Bitcoins can also be transferred over the internet to anyone with a bitcoin wallet address.
Bitcoin's
P2P topology and lack of a single administration make it extremely
difficult to manipulate whether it's by any particular entity, be it a
cybersecurity authority or any government.
So that the price of
bitcoin is difficult to be influenced by inflation because it is
difficult to produce bitcoins in very large quantities.
With
bitcoin too, transactions between countries are very easy and private
because bitcoin itself is not bound by any country, law or regulation.
Please
note that every bitcoin transaction is recorded in public records but
the names involved are never recorded and are always anonymous.
On
the one hand, because it allows for illicit transactions, it is very
difficult for the authorities to track down who is involved in various
criminal acts.
Such criminal acts are, for example, financing
terrorism, buying weapons, narcotics, and so on because of the
extraordinary level of anonymity.
Bitcoin is a new currency or electronic money that was created in 2009 by someone using the pseudonym Satoshi Nakamoto.
Bitcoin is mainly used in transactions on the internet without using intermediaries or not using bank services.
Just like KoinP2P from KoinWorks, bitcoin uses a peer to peer (P2P) system.
However,
the system works without a single repository or administrator where the
United States Department of the Treasury calls bitcoin a decentralized
currency.
Unlike most other currencies, bitcoin is not dependent on one major issuer.
Bitcoin uses a distributed database and spreads to the nodes of a P2P network to a transaction journal.
It
also uses cryptography to provide basic security functions, such as
ensuring that bitcoins can only be used by those who actually own them,
and never more than once.
As a result, bitcoin can be used in
various types of transactions such as buying internet servers, buying
fashion products and so on.
There are also many people who only trade bitcoin as a profitable investment activity, and many become rich because of it.
This is influenced by the price of bitcoin which reached hundreds of millions of rupiah in 2017.
Unlike
money that is usually stored in a bank account, bitcoin is basically
stored on a personal computer in a wallet file format, or stored in a
wallet provided by a third party.
Ownership does not require an identity, alias can be owned by an anonymous person.
Electronic money such as bitcoin can be stored in a digital wallet on a cloud server or on the owner's personal computer.
The wallet in question is more like a virtual bank account that allows users to send and receive bitcoins, invest and transact.
Apart from being in the form of transactions, how do you get bitcoins?
The most popular thing that people often do is 'mining' bitcoin.
People even compete with each other to mine bitcoins using their computers by solving very complex math puzzles.
This is how bitcoin was created.
Currently,
the winner who successfully completes the math puzzle is rewarded with
12.5 bitcoins (or equivalent to Rp. 1.4 billion) every 10 minutes.
It's amazing, isn't it?
Because
it is so tempting, many websites out there such as websites providing
torrents/downloading software or free movies in general even insert
viruses in the form of javascript and are automatically installed on
visitors' computers.
Then the virus will 'mine' bitcoins on the visitor's computer, causing the computer to be slow and start to heat up easily.
In addition to 'mining' and transactions between users, another way to get bitcoin that is now very popular is through trading.
Many companies have become marketplace platforms that are specifically engaged in bitcoin trading.
Bitcoins are now traded at the prevailing exchange rate.
Only 1 bitcoin, the valuation can be equivalent to more than IDR 115 million. Crazy!
The short answer, no.
The full answer, the monetary authority forbids.
The
ban by Bank Indonesia (BI) is intended for technology-based financial
service actors (KoinWorks, one of them) including e-commerce, so as not
to accept bitcoin.
Virtual currency processing is also prohibited.
According
to the Head of the Communications Department of Bank Indonesia, Agusman
Zainal, "In the context of the payment system, bitcoin is not a legal
tender."
He added that this had actually been regulated in the
Bank Indonesia Regulation concerning the Implementation of Payment
Transaction Processing in 2016.
In the early stages of the emergence of KoinWorks among the public as a
pioneer of P2P Lending in Indonesia, many people mistakenly associate it
with bitcoin because of the word 'Koin' in KoinWorks.
As a result, many think that KoinWorks is the place to invest in bitcoin.
In
fact, KoinWorks itself was originally a company that provided a P2P
Lending platform that brought together borrowers and lenders in an
online platform that could be accessed anytime and anywhere.
However,
starting at the end of 2019, KoinWorks has transformed into a Super
Financial App, which provides not only funding products, but also
digital gold investment and business loans.
Its products are diverse, ranging from KoinP2P and KoinRobo as funding products.
There is also KoinGold, where users make buying and selling digital gold transactions.
Then, KoinBond is an easy solution to buy Government Securities (SBN) investments from the Indonesian government online.
Until, there is also KoinBisnis, which provides business capital loans of up to IDR 2 billion.
On January 23, 2018, as quoted from TribunNews, the government announced
a strict ban on the use of virtual currencies (cryptocurrencies)
including bitcoin as a means of transactions and payments in Indonesia.
Bank
Indonesia Governor Agus Martowardojo warned the public not to trade or
buy bitcoin, because there is no regulatory body that supervises
bitcoin.
So it is vulnerable to pose a risk to the community.
The use of bitcoin, said Agus, is also close to the possibility of money laundering and terrorism financing.