Finansial

"The Prohibition of Bitcoin"

9 Juli 2018   18:16 Diperbarui: 9 Juli 2018   18:26 652 0 0

Bitcoin is a digital currency found by Sitoshi Nakamoto which became popular in 2013 (Pratama,2017). Bitcoin has three parts: block chain, mining network and wallet. The function of bitcoin is to purchase various services, one of which is games. For now the number of services that receive bitcoin is still quite limited in Indonesia, because of lack of information about this subject.

In addition all not companies use dollar as their currency. Bitcoin is currenly banned in Indonesia. Therefore, this essay will explain why Indonesia banks prohibit the use of Bitcoin. Bank Indonesia bans payments using bitcoin because the ownership of virtual currency is very risky. Exchange rate is very volatile and vulnerable to the risk of inflation. Inflation  is trade a product or asset at a price higher than its fundamental value.

Inflation occurs because no authority is responsible, there are no official administrators, no assets underlying the virtual currency price and the value of trading is very volatile. Another risks are potential use in money laundering and terrorism financing, and vulnerable to cyber-attacks. These risks make bitcoin still banned in Indonesia. The use of bitcoin is also very susceptible to crimes. 

One of the crimes is fraud, for example there is a new investment fraud mode that is offering investment in digital currency, namely bitcoin. Bitcoin is also susceptible to be hacked. In doing bitcoin transaction, users must use the internet network and enter the address. If the hackers know the user's email address and manage to hack the email address, so the data will be stolen. When the original user types his/her address, it will turn to be wrong, because the data has been changed by the hacker. It means the money will be lost. So, we have to be aware of these crimes if we want to buy bitcoin.

The head of the department of communication bank Indonesia transaction using bitcoin can be subject to some sanctions that generally The use of bitcoin is also very susceptible to crimes. 

One of the crimes is fraud, for example there is a new investment fraud mode that is offering investment in digital currency, namely bitcoin. Bitcoin is also susceptible to be hacked. In doing bitcoin transaction, users must use the internet network and enter the address. If the hackers know the user's email address and manage to hack the email address, so the data will be stolen. When the original user types his/her address, it will turn to be wrong, because the data has been changed by addressed to the provider of payment system services (PPSS). 

Parties included in the (PPSS) are banks and acquirers. Acquirer is a bank or institution other than a bank that cooperates with a merchant, who can process electronic money data issued by other parties. The sanctions are written warning and write-offs from the list of financial technology providers in Indonesian banks. If removed from the register, payment system providers are prohibited from working with financial technology providers. 

So companies that use bitcoin in Indonesia are little because of sanction issued by department of communication bank Indonesia. So, because some of the risks of bitcoin are quite large, then to date in Indonesia, the use of bitcoin still not legal.If we really want to invest in bitcoin because of its value that continues to skyrocket, then the risk-risk already mentioned above should be carefuly considered.

The consideration is bitcoin the price is not stable, sometimes can go up sometimes can go down so if want to invest it must bear the risk, due to the rising prices on demand, so we do not know wheather the investment could go up or down.Pratama, Aditya Haddi 2017."Bitcoin 101 untuk para pemula."techinasia.com