Have you heard about blockchain technology with its famous product Bitcoin? Currently changing business patterns due to digital disruption we can not avoid. In the financial world of course the most hot topic today is certainly cryptocurrency.
Did you know that the total crypto currency market (cryptocurrency) had reached the value of $ 600M and then fell almost half. Of course millennials who are fond of the world of investment and finance know little about the rampant cryptocurrency I mentioned above.
The cryptocurrency trade data is getting more and more curious. Why technology is still fairly babies are able to attract the attention millenial society in a very short time. I will try to describe one by one, while observing the cryptocurrency trade which he said was only a dream or even an illusion. Is it true that cryptocurrency is a mere illusion or just a toy for big investors?
At the time of this article I wrote, the market value of cryptocurrency which is a combination of Bitcoin, Bitcoin Cash, Ethereum et al have reached $ 603.3 M. This value doubled compared with the previous month but less than a month its value fell by almost half. What a very significant fluctuation.
The market value of this cryptocurrency has experienced a big spike since the last two years, as well as the growing number of digital currency that emerged recently. In addition to the known Bitcoin currency among netizens, there are other currencies such as Bitcoin Cash, Ethereum, Dash, Riplle etc.
If we trace back, bitcoin made with the concept of blockchain technology is increasingly popular among millennia. Why the use of Bitcoin is very fast today certainly can not be separated from its nature without a mediator (peer to peer), decentralized and transaparan. So that roles such as banks, governments, third-party agencies are no longer needed. Bitcoin technology can be used to exchange data such as financial transactions directly, anywhere, anytime, free and reach the whole world. Interesting right?
In response to the high interest of investors to "play" in the world of cryptocurrency, recently the government in America built a Bitcoin Futures exchange on the Chicago Board Option Exchange. CBOE became the only futures trading platform for Bitcoin and because of the high transactions at the start of opening, the CBOE site was having problems. This is the first debut of Bitcoin futures exchanges since it was promoted a few years ago.
In reality I think each of these digital currencies affect each other so that this causes a very rapid price change. Some time ago the value of 1 Bitcoin had reached $ 20,000, but after that experienced a very rapid fluctuation and free fall into the estimated $ 7,000 per 1 Bitcoin. Investing in the cryptocurrency market is becoming the world's most 'rowdy' investment. How not, in 24 hours the price can rise or fall almost 20%, novice investors are not advised to directly play 'big' in this digital currency because the price is very volatile and difficult to predict.
Amid the pros and cons of investors and financial experts as well as the tight supervision of the government these days, this digital currency nevertheless can live in its own way. Investors like Warrant Buffet even called Bitcoin a mere dream, while a JPMorgan Chase class financial institution through CEO Jamie Dimon once called Bitcoin a fraud.
But the reality does not diminish the interest of investors to own the digital assets. The Indonesian government itself has issued a ban on the use of Bitcoin currency, while the technology behind the blockchain embraced. It's a bit strange that's the reality at the moment.
On the other hand, a group of European economists called Bitcoin not a threat to the financial sector because the portion of the transaction is very small compared to the existing financial markets. A survey conducted by U.K.-based Center for Macroeconomics with 100 economists from various universities in Europe said 50 respondents answered that digital currency is not a threat to financial system stability, while 25 respondents answered 'strongly not a threat'. This statement is also in tune with the voice of the Financial Stability Oversight Board (FSOC) in the US who says the digital currency is not a threat to conventional financial systems.
Although the value of investments in digital currencies is still a big investment risk, the reality is that many say Bitcoin is Gold 2.0 because its value is very high. Easy transaction and can be used anywhere. The above statement I think there is a point, bitcoin other than used as a digital currency for internet transactions but also can be used as a digital asset ywhich can be transacted at any time.
Call it in Venezuela and Argentina, bitcoin is very important to protect individual assets in the midst of an inflation storm that hit the Latin American country. But I certainly do not recommend all your funds put in this digital asset.
According to Standpoint Research in 2018 the value of Bitcoin will jump to 500% and will be one of the most valuable currencies in the world. In fact, it is not surprising that these digital currencies soared 100%, 300% or even 500% within a few months. After all, the basic character is very volatile and very decentralized. Although the current value of Bitcoin free fall, the potential return of the strengthening of digital currency is still there
How has the industry and government responded so far?
If in various countries still wait and see the use of this digital currency, a company in Japan GMO Internet began to offer salaries of its employees using Bitcoin, the company stated that employees can choose the option of payment of salary whether through Bitcoin or Cash Money.
If a glance to the industry especially internet-based, some sellers (merchants) already offer Bitcoin as a means of payment. Call it overstock dot com, a retail that sells goods online, expeditions, large travel agents who start attracted Bitcoin, even wordpress has started using Bitcoin for transaction services provided. I predict that in 2018 more and more merchants will use Bitcoin in their business processes.
Indeed, the current implementation of Blockchain in the financial field (Bitcoin) is still 'prohibited' in some countries. But other technologies of blockchain manifestation actually began to be used in various sectors such as government and industry. In Estonia the blockchain technology will be applied to elections, in Delaware (US) blockchain used to assist corporate operations. While Sweden will use blockchain for regional property management. Even Dubai will use Blockchain to run all its government operations by 2020. While in Indonesia, until now still in the position of wait and see in the application of this new technology.
How to 2018?
Digital disruption due to the rapid application of blockchain technology will be increasingly felt in 2018, especially the financial industry and banking. The massive use of this digital currency will make the financial institution predicted to experience disruption if it can not innovate in its services. Do not believe? Take a look at the data on how many banks are starting to reduce the amount of physical assets ownership, employee deductions to investments in digital currencies.
Authors' predictions, the cryptocurrency ecosystem of 2018 will be growing and dynamic, even called Bitcoin will be Gold investment (Gold 2.0), which will be widely used for storage of assets other than as digital currency used for Internet transactions. Clif High's banking analyst said the value of Bitcoin would triple in 2018 although it would suffer depression quite deeply before returning soaring. In short the 'noise' of this digital currency will still continue in the next year and bring a greater impact than the previous year.
Along with the higher phenomenon of adoption of this vague currency in various regions. The magnitude of this 'vague' currency will be widely used for business transactions indefinitely and in time. So, Let's wait how this phenomenon will change the conventional business model and industry that has been rooted strongly before.
