"Virtual Currency"

Virtual currency is a means of payment, by which transactions are done through internet or digital networks. The history of this currency is still a question, about who and what is the purpose of the creation of the currency. Virtual currency or commonly called krypto, is a decentralized financial protocol that is able to connect every user through the internet network. virtual currency is created with cryptographic technology for the security system, thus making this money can't  be faked (Dhanu 2018). 

Different from conventional currencies the arrangement is regulated by the center, this currency is circulated by everyone with a system called peer to peer, the amount of circulation of digital currency is limited, only 21 million are created by the owner. this is an algorithmic strategy to avoid inflation in the currency (Almahendra 2017). 

Today digital currencies are certainly in great demand by most people to transact in digital activities, because the most of people activities uses technology. In fact, behind the dominance of the digital currency, there are still questions about who created this digital currency, and then whether the currency is regulated and legalized for financial transactions in various countries.

Virtual currency exists to facilitate everyone's transactions on the internet. As the time goes by, the era of digitalization began to grow and this led to the use of conventional currency that is difficult in transacting. To resolve this, government agencies began to make digital-based payment instruments such as E-money to facilitate transactions. Virtual currency was introduced in 2009 by a mysterious person named Satoshi Nakamoto (Almahendra 2017). Different from E-money and conventional currencies, virtual currency was created to make a new transaction system that is free from any intervention including the government (Tanudjaya 2018).

Although the virtual currency has many advantages and many enthusiasts,  the legality of the use of currency is still questionable. Malaysia and Thailand do not recognize the virtual currency as a means of payment, Russia also states that it is illegal. While China allows the use of virtual currency but the transaction is limited, unlike Germany which legalizes the use of virtual currency in the country. in Indonesia, transactions via virtual currency are still not recognized by Bank Indonesia and the transactions are illegal.

The era of digitalization as now the use of digital-based currency will be in great demand, but transactions through virtual currency are not regulated by the center, their free use can be a threat. because its use is too anonymous, not controlled by the center, and too free, many people use this opportunity to commit crimes in the internet, such as ransomware (Tanudjaya 2018). Not only that, many people are using virtual currency to buy guns, drugs, and for other illegal trade. this happens because the virtual currency is too free. Therefore we as the transactors should be wise in using the means of payment, especially virtual currency.

References: 

1. Dhanu, Riki. 2018. Bitcoin Masa Depan atau Ancaman. Video. Diproduseri oleh Riki Dhanu. Indonesia : Liputan 6
2. Almahendra, Rangga. 2017. Apa itu Bitcoin. Video. Diproduksi oleh A+ Positivi. Indonesia : ADITV Production House
3. Tanudjaya, Alfons. 2018. Bitcoin Masa Depan atau Ancaman. Video. Diproduseri oleh Riki Dhanu. Indonesia : Liputan 6