- 06/03/2018
- Categories: Commentaries, Press Release
The phenomenon of digital currency or cryptocurrency has grown rapidly worldwide in the recent years. Bitcoin is one of the cryptocurrency that is currently gaining popularity in among the indonesian society. However, the knowledge beyond Bitcoin and cryptocurrency in Indonesia is still relatively low. Departing from that situation, Center for Digital Society (CfDS) UGM, together with Bitcoin Indonesia tried to dismantle Bitcoin-related issues as Indonesia’s digital trend in DigiTalk #13 on Monday (26/2).
With the rapid technology development, it is not surprising that the use of digital currency becomes more popular, especially with the ease offered in digital transactions and promising investment opportunities. The usage of blockchain technology makes Bitcoin different from digital money and digital currency. Blockchain technology was invented in 2009, where the blockchain platform is developed through a decentralized peer-to-peer system, so it does not rely on a single server like a traditional database system. This also makes all activities safer and transparent, especially with the existence of crypto technology that provides security protocols against attacks and hacking.
Bitcoin and other cryptocurrencies is also a promising investment option because of their characteristics, which described almost as similar as gold. Bitcoin can be used for transaction anytime, by anyone, anywhere and anywhere quickly and easily. Bitcoin is obtained through ’mining’ activity done automatically with a super computer, and it cannot be faked or destroyed. The limited number and high demand around the world make the value of Bitcoin continues to rise and its potential is more promising.
Nevertheless, there are also numerous risks arise from this breakthrough invention.
“Of course there are high risks, especially regarding the status of Bitcoin (and other cryptocurrency) that have not been legally acknowledged and also the lack of regulation.” stated by Nidya Rahmanita, Lead Consultant and Bitcoin Indonesia’s representative in Digitalk #13.
Although the existence of blockchain technology, which is being combined with crypto technology, is far safer from hackers and cybersecurity threats, the safety protocol only can be activated once the transaction takes place. Users who have not equipped their computer with strong security measurement are in risk of receiving cyber threat from third party. Furthermore, Bitcoin itself is relatively new and its value is highly dependant on supply and demand, which makes it fluctuates easily. It is also often seen where traders or Bitcoin users are experiencing a significant amount of loss.
However, Bitcoin still owns several potentials and advantages, which can be applied effectively in Indonesian society. Within the era of cashless society and the huge growth of e-commerce, Indonesia needs to run faster to catch up with the world by providing a clear and sufficient legal instrument. The existence of such legal instrument enables Indonesia to rule the taxation system for the aforementioned business and it can contribute to increase Indonesia’s national income. The utilization of blockchain is also interesting to provide more transparency. This kind of technology may provide ease to the government to oversee unusual transaction activities that may related to corruption, money laundering, or terrorism funding.
“If we do not start to regulate the Bitcoin in Indonesia, our country will be left behind by the rest of the world,” add Nidya.
The DigiTalk #13 was moderated by Gehan Ghofari, research associate from CfDS. Overall, it was welcomed massively by the audiences from different background. There were 328 attendances of this event. This public event also being complemented by an interesting questions and answers session where the speakers able to shed a light regarding the development of Bitcoin and cryptocurrency phenomenon in Indonesia at the moment.
