Cryptocurrency

Created by Muhammad Denito Bastian & Mochammad Lukman Nur Hakim

Human idea is limitless. Throughout the years, mankind itself have evolved from
hunting and gathering food for survive to creating and processing resources for a living and
maintain a stability of the nature for the greater future. With new ideas comes for survive in
this particular world, man have invented various technologies to help them achieved daily
task and objective with effeciency in time and energy. People can observe to this day,
technology have helps them to achieve their goals. Technology has a great impact for many
aspects of living. It helps a person to saves lifes of many sick people in hospital, it can help
an accountant to solve algorythm problems in maths, it can take tourists to many countries
with just a few hours, it can also help government to solve economic problems like inflation
and poverty. The point is, technology is a prove that mankind have to create a tool for
achieving life goals and creating a better future for themselves. As written before, human is
creative. They can self-adapt. They are intelligent being that have a role for making a better
living for every creature living in this planet. Mankind also have methods and ideologies
instead just creating a raw tool. Every civilization of mankind have each one of particular
ideas and methods to making their lives a lot easier. For example people in the west and the
east have a huge differences of culture and ideas but each one of their ideas have the same
purpose. What is it? To make a better living.

To achieve a goal, mankind are not just simply creating a tool or using methods but
they work together as a team. Human is a social being. They need each other for survive.
Without integrity and unity, civilization will drop from 100 to 0. Now let’s see how the
development of technologies , ideas and methods have an impact through economic
perspective. In the old days, people are helping each other to complete their needs with
exchanging goods and foods. For example man A have a lot of fish but he does not have the
ingredients to making it consumable so he trade a couple of fish with the ingredients from
man B whose ingredients that man A needs. With this method has been used throughout ages
people finds it difficult to fulfill their needs because this method is inefficient. With this
method people must have every resources despite of their needs, and that is impossible. So
humans invented a trade tool that will help this kind of problems. This tool is called a
currency. All stuff that seems precious to people tend to be used as a currency, for example
gold and silver are luxury and precious in the eye of human, therefore this mineral can be
used as a currency exchange. Some civilization that have a lack of minerals tend to use salt or
rice or any food that is a primarily used in daily activities. This leads to a new invention of
the currency called a cartal paper or a money. When money was invented in 13 th century,
many nations and countries used money as a currency for their state. This is because the use
of money is very efficient and makes every transactions simple and easy. But that is not all.
The development of technology through the ages made many changes to economic aspect.
 Since the invention of a piece of tech called the internet, mankind have developed
many tools and gadgets that will help their problem solved efficiently. In this century,
mankind witness the development of technology can not be stopped. It is invitable. It is just
naturally exist. Technologies are upgrading and developing following the increasing
creativity of human adapt to their current situation and needs. In these recent days, there are
many issues and news about a new currency that cant be seen or held instead like a physical
paper money. What is it called ? This piece of tech is called a cryptocurrency. How is this
even possible ? This technology is using one of the tech that was invented over thirty years
ago by U.S. government and also this tech is providing its functionality to many tools and
tech that being used by people in this era of advanced technology. What’s that ? That’s right,
it’s called the internet. This prove that when human invented a technology, they can build
another technology with other tech and that will provide greater benefecial to mankind. Few
people know, but cryptocurrencies emerged as a side product of another invention. This tech
is using a peer-to-peer electronic cash system. Which means, this kind of currency is a
decentralized digital cash system. In the nineties, there have been many attempts to create
digital money, but they all failed. Cryptocurrency was first invented in 2008 with it’s first
name “Bitcoin” by an unknown inventor called Satoshi Nakamoto. Bitcoin was not very
popular that year because people still have doubts and people back then was not very
intrigued about it. But a year ago, bitcoin gained its popularity when the price value reached
the amount of $5128.05 per 1 btc (now it’s $9295.24 per 1 btc). This shooked many people
that have invested in bitcoin because it’s the first time a digital money can reached the value
so high.

Bitcoin is popular in many countries across the world including third world countries.
Bitcoin is not just the only cryptocurrency are there in the internet. Many currencies like
ripple, litecoin, ethereum also a cryptocurrency. Yet its not that very popular when it’s
compared with it’s father of cryptocurrency, bitcoin. With this technology growing and
growing throughout the years, there have to be a few impact on world economy and there are
many countries against this particular technology because this currency can not be controlled
by government and the technology is so advanced that even some of the nation in the world
banned it because it will be not fit to used by people because the lack of knowledge and there
are many poverty occurred in third world countries.For instance, Asian countries like
Indonesia banned the used and trade of cryptocurrency because this technology for them
brings negative effect on the economic cycle. On January 13 th, 2018 Bank of Indonesia stated
that “It affirms that virtual currency or cryptocurrency including bitcoin is not recognize as a
valid payment instrument, so it is prohibited to be used as a means of payment in Indonesia”
(news.bitcoin.com). “Ownership of virtual currency is very risky and full of speculation
because there is no authority responsible”(news.bitcoin.com), said the central banker. But
even with the statement like that from the Bank of Indonesia, was not effective to restrict the
people of Indonesia to trade bitcoin.
 This was proven on March 2018 with maximum market cap in Indonesia reached
more than one trillion per day or about seventy one thousand dollar per day
(finance.detik.com). Which means Indonesian people ignores what government said to them.
This occurrence happened because there is no law or regulations that directly stated bitcoin is
illegal, yet the government still working and studying on it. But in the meantime Bank of
Indonesia will reinforced the law in this year and of course Bank of Indonesia will working
together with Financial Services Authorities. The main reason why Indonesian government
banned this amazing invention because there are a lot of criminal activities like drugs trade,
funds for an act of terrorism and other else are using bitcoin as a payment because transaction
in bitcoin is strictly anonymous and it’s difficult to trace the buyer and the seller. Head of
state police, Tito Karnavian also said there are many terrorist in Indonesia who is using
bitcoin for funding their activities. But there’s one question remains, will bitcoin influence
the economic activities in Indonesia to a better future for its people ? The answer is remain
unknown yet, but for this time , the people must obey the government to not using bitcoin or
other cryptocurrencies until government decided wheter it is good and beneficial to using
cryptocurrency or it will brings more problems and negatives occurrence to its nation and its
people.

All things considered it seems reasonable to assume that there are many advantages
and disadvantages of using virtual currency. There are quiet many benefits we can gain by
using virtual currency, for instance with using virtual currency it is very possible to be able to
send and get money anywhere in the world at any given time, also with the anonymous
transaction, user’s information are safe and kept hidden from prying eyes, keeping the users
safe againts identity theft. The main advantages of using virtual currency is the supply of
virtual currency can not be controlled by a person or a group and the system of
cryptocurrency is decentralized which means it is controlled by the traders and not controlled
by the bank or any government. But, with many advantages written above there are also quite
many disadvantages of using virtual currency. There are many criminal activities using the
technology because as written above, the transaction is quite anonymous and it is difficult to
track the traders. Virtual currency also cant fit that easily for people from third world
countries because the lack of using advanced technology. Virtual currency also have many
times of unstable prices because it is not controlled by a formal organization. Making it value
fluctuate time to time.

Above all, it seems pertinent to remember that when using the technology for greater
good, humans must learn to use technology with precaution and good morale for benefits for
all living being. In this case when using cryptocurrency, a person must decide that when he or
she is using such tech will brings benefit to all people or to making people suffer.