Grant Thornton Indonesia's Update

Is it Really a Goodbye for Bitcoin or Cryptocurrency Blockchain?

Bitcoin has lost more than half its value since hitting a peak of near $20.000 in the week before Christmas. Bitcoin is not recognized by any central bank and currently allows people to bypass banks and traditional payment methods to pay for goods and services.

Banks and other financial institutions have been concerned about bitcoin’s early associations with money laundering and online crime, and it has not been adopted by any government. Not mentioning that a lot of bitcoin buyers are common people who do not understand the underlying fundamentals of blockchain and cryptocurrency technology.

They just see the price rising and want to get in quick in order to cut off a slice of the pie for themselves. Many newbie investors buy up small amounts of bitcoins expecting astronomical returns in a short period. Digital currencies have also faced a global backlash from regulators and governments.

India’s finance minister said that the country does not recognize cryptocurrencies as legal tender and would take action against their use in funding “illegitimate activities”. US regulators are investigating the Bitfinex exchange and a cryptocurrency company called Tether. They are questioning whether tether, whose coins are used to trade digital currency, is backed by US dollars as it claims.

Facebook has banned bitcoin and other cryptocurrency adverts on its site. South Korea announced at the end of December that it was planning a crackdown on trading in the digital currency, preparing a ban on opening anonymous cryptocurrency accounts and new legislation to enable regulators to close coin exchanges if they felt there was a need to do so.

UK prime minister Theresa May has concerned that criminals were taking advantage of digital currencies. “In areas like cryptocurrencies, like bitcoin, we should be looking at these very seriously,” she said.

The Power of Technology

As the technology keeps growing, are we sure that Bitcoin will end its era in 2018?

Bitcoin and the cryptocurrency craze has had a rocky start to 2018 plunging to a two-month low of $7,695.10 according to CoinDesk.com. But some experts predict the digital currency mania will be going better.

At the start of the year, Blockchain Capital partner Spencer Bogart predicted that bitcoin’s price could rise to levels of up to $50,000 in 2018, over double its highest price in 2017. “I can’t tell you exactly what’s going to happen with price and neither can anybody, but when I look out over the next 12 months, what I see is a significant supply and demand imbalance at the current price levels.”

Imran Wasim, a financial analyst at AMSYS Group, has his predictions as well. “It has dropped in price, this is good. A lot more money is going to come into bitcoin, bitcoin will go up around $30,000-$35,000 this year – next couple of years? $100,000.”

Mark Carney is calling for greater regulation to bring the era of cryptocurrency “anarchy” to an end. “The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system,” the Bank of England Governor said in a speech at Bloomberg’s European headquarters in London.

Carney, who is also the head of the Financial Stability Board, joins a growing chorus calling for greater oversight of the technology after the explosion of new cryptocurrencies.  Does he mean blockchain technology?

As known, the main concept of Blockchain is decentralized including transactions, and being programmed to work through data called block. This technology uses a very secure system and is very important to manage financial data and digital currency development such as bitcoin.

It is safe cause by using Blockchain, users can get their transactions validated by adding block. Blockchain system can read a lot of data and very transparent. This term is also work on human, because if the identity is in the system, it will be secured.

Blockchain is giving a high secure guarantee because nothing can change it. That is why the identity of 250 million people is saved in a private blockchain.