Cryptocurrency, Not Always Safe Investment
Maybe this will be a bad news for those who are optimistic about the development of Bitcoin that in less than a month this cryptocurrency has dropped dramatically to 21%. On June 18, 2018, the price of Bitcoin was traded at US $ 6,443 or Rp 86.9 million. The Data released by Coinbase stated that Bitcoin’s price on May 19, 2018 was US $ 8,536 or Rp 115 million (US $ 1 = Rp 13,500). While on June 18, 2018 the value of Bitcoin was at US $ 6,443 or Rp 86.9 million.
The fall of Bitcoin price was influenced by issue from the main of central bank organization in the world who warned of the use of Bitcoin. The central bank stated that cryptocurrencies such as Bitcoin would become increasingly useless in the future. The doubt of the central bank refered to the fact that the value of Bitcoin in a month had reached its lowest point at US $ 6,255 or Rp 84 million on June 13, 2018. It was its duty to release a statement as a warning to the public.
Bitcoin and some other kinds of digital money are cryptocurrencies that are not measurable at all. Even if more and more people use cryptocurrency, it will increase the risk of disturbance of trust and efficiency.
Cryptocurrency is a technology that uses the currency digitally. This technology uses cryptography for security so that this type of currency can not be copied. The value of a cryptocurrency is largely determined by the power of buy and sell of this technology users.
Considered as a breakthrough of financial technology, a various of cryptocurrencies are developed by various companies and engineers team in some parts of the world. Even Google Ventures also invests in one of cryptocurrency technology. Until now, more than 500 cryptocurrencies have been created with innovative concepts.
One of the weaknesses of cryptocurrency is its value basically based on the power of buy and sell so it is not guaranteed by anything. Because of these conditions the value of a cryptocurrency often drops more than 20% in just one day.
Always Use Critical Sense
The weakening sign of the value of cryptourrency have increased in a week. The Bank of International Settlements (BIS), the main of global central banks that has a headquarter in Swiss, needed to make an anticipate step, even it is only a warning. BIS stated the latest warning that Bitcoin would be increasingly useless in the future.
Furthermore, BIS revealed that cryptocurrency that actually only exist in the digital network is using a great trust to maintain the stability of its value and capability. The situation that only depends on the belief in the cryptocurrency could disappear instantly if the decentralized network in every digital currency is fragile.
As more and more people are optimistic about or use cryptocurrency, decentralized networks are more easy to stuck. Except of that, BIS is also worried to see another potential risk which is the high transaction costs per second, especially for Bitcoin. Those were Some of the facts that make BIS could not just be silent. The facts were potentially harming the society. “Trust can evaporate at any time because of the fragility of the decentralised consensus through which transactions are recorded, and that cryptocurrency is also able to stop functioning one day and will make it lose value,” Said BIS in its statement in Reuters.
Source: Antara, Reuters
Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.
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