TheJakartaPost
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Cryptocurrency: On blocks and bits
Over the past several months, more than US$10 billion in Bitcoin are exchanged every day on average and in 2017, an estimated $5 billion was raised through an initial coin offerings (ICOs).
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Cryptocurrencies are definitely something to watch. (Shutterstock/File)
P
eople have different responses to the spectacular rise in Bitcoin and cryptocurrency prices. Some say that the sharp increase in prices is not based on any fundamental economic value underlying these assets, and others say this phenomenon is similar to the Tulip mania that swept Europe in the 17th century.
We believe that there is real innovation going on, hence value is being created, and although there will be short-term fluctuations in prices, Blockchain and cryptocurrencies are here to stay.
Over the past several months, more than US$10 billion in Bitcoin are exchanged every day on average and in 2017, an estimated $5 billion was raised through an initial coin offerings (ICOs), a new means to raise funds through the issuance of new cryptocurrencies or tokens.
These are roughly 20 times the average daily trading value and 10 times the amount of funds raised by all IPOs on the Indonesia Stock Exchange in 2017.
All transactions are conducted without a single accountant, bank teller, lawyer, administrator, investment banker or brokerage and consequently, are done at the fraction of the usual costs.
The underlying technology and innovation behind Bitcoin and ICOs is called Blockchain, and it is one of the most promising emerging technologies of the last decade.
Blockchain maintains a record of transactions and keeps a copy of it in many computers all over the world.
