I’m sure some of you have heard about bitcoin right now, or perhaps heard the story about if people bought a 5 dollar bitcoin 5 – 7 years ago they would now become a millionaire? That sounds crazy, right?
But, if you haven’t heard about bitcoin at all, bitcoin is basically a new currency that is increasingly accepted as payment form worldwide. This currency is digitally “mine” and its supply is mathematically limited to twenty one million bitcoins (note: this can never be changed). This podcast by So Money provides a quick introduction about bitcoin:
If you’re wondering who invented this bitcoin, check out this CBNC video that talks about who is the actual founder of bitcoin:
If the above does not interest and overwhelm you at the same time, you should see the chart of bitcoin value against USD from 2009 up to November last year:
In Indonesia, there is no specific regulation on bitcoin and our central bank has not yet recognized bitcoin as an accepted currency in Indonesia. However, people can still buy bitcoin through platforms like bitcoin.co.id or etoro.
The big question now is, should we invest in Bitcoin? At this point, Bitcoin is already super expensive i.e. 7k dollar or 100 million rupiah per 1 bitcoin! So, the stake is very high now and not everyone has 100 million cash ready on hand, and even if they do, not everyone is willing to use it to enter into this foreign concept.
Logically, the fundamental principle should be the same as trading forex, it’s based on supply and demand, and since the supply of bitcoin is limited to 21 million, the growth will only increase if more people use and trade with them. Some people say it’s a bubble and would be crushed by governments, but other say that bitcoin may soar to US$25k in five years. At the end of the day, for common people like us who are not financial or cryptocurrency experts, the decision to buy Bitcoin would boil down to whether we trust the ecosystem or not, whether we believe this is the currency that people will continue to use in the future or not, because the more people use them, the more common it becomes, the value would continue to grow, and vice versa.
So, what do you think peeps? Will you or have you invested in Bitcoin?
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