Bitcoin is a hot topic of conversation at the end of 2020. Bitcoin is considered not legal and is even referred to as MLM. In addition, there is some stigma or misconceptions about Bitcoin.
Here are 7 wrong stigmas about Bitcoin.
Bitcoin is Not legal in Indonesia
Bitcoin was banned by Bank Indonesia in 2018. At that time Bitcoin touched its highest price, around USD19,800 or IDR 260 million. However, the Indonesian government only prohibits Bitcoin as a means of payment.
The Indonesian Blockchain Association (ABI) and several crypto and blockchain asset developers continue to push the rules to the government. ABI at that time was led by Indodax CEO Oscar Darmawan.
Some time after that, the Ministry of Trade through the Commodity Futures Trading Supervisory Agency (BAPPEBTI) issued a regulation on the use of crypto assets.
Since then, crypto assets have become legal and can be owned. This is regulated by BAPPEBTI Regulation Number 5 of 2019. Bitcoin and other crypto assets are legal commodities that can be traded in Indonesia.
However, for those of you who want to buy Bitcoin, you also need to look at the legality of the marketplace or platform. Because only a few crypto asset companies in Indonesia, including Indodax, get legality from BAPPEBTI.
Bitcoin is MLM
Bitcoin is a digital asset. It is sold on the exchangers platforms.
Crypto assets do not use a multi-level marketing (MLM) sales scheme. So, to buy Bitcoin, you don’t need to invite other people to get rewards or bonuses.
The way to “play” is like trading any other asset. Buy an asset, then sell it when the price has gone up or is profitable. In fact, the Indonesian Blockchain Association and BAPPEBTI also do not allow MLM schemes to sell crypto assets.
For practitioners of crypto and blockchain assets, MLM can worsen the image of the world of blockchain and crypto assets.
Mining is The Only Way to Get Bitcoin
Bitcoin’s nature is the same as gold. Can be mined, even if mining is done digitally.
Bitcoin mining or mining is carried out using computers with hardware that reach hundreds of millions of Rupiah. Miners solve cryptographic formulas and get rewarded in the form of Bitcoin.
However, the way to get Bitcoin is not just mining. Because Bitcoin can be purchased on an exchange like on Indodax. You can have Bitcoins to collect and can sell them when the price goes up. This is also known as trading.
You can also have Bitcoin to send money to a digital wallet and it can be transferred abroad. So, even though Bitcoin can be used for overseas payments, you don’t need to spend hundreds of millions to buy Bitcoin mining equipment.
Cryptocurrency is Only Bitcoin
When you mention the word cryptocurrency, you might think of Bitcoin. Likewise, mentioning the word crypto asset or blockchain. However, did you know that Bitcoin is not the only crypto asset.
There are millions of crypto assets in the world. On Indodax alone, there are more than 100 crypto assets that you can own. Apart from Bitcoin, there is the crypto asset Ethereum, which is the most popular crypto asset after Bitcoin.
Each crypto asset has different utility or use and fundamentals. This is why the price and its up and down price movements are also different.
Bitcoin is Not a Long Term Investment
Bitcoin is often referred to as an investment that has a high risk compared to other investment products. Because the price fluctuates so drastically and fast, like a roller coaster.
However, in truth, Bitcoin is a long term investment. Bitcoin’s increase was only around 170% throughout 2020. This increase is indeed high compared to other investment assets outside of cryptocurrency.
However, other crypto assets have actually increased higher, fell deeper and at a faster tempo. Because other crypto assets such as those based on DeFi, namely yEarn Finance, Uniswap, and others recorded more fantastic performance. They can go up a hundred percent over a night or two. Then move down again.
Meanwhile, the increase in BItcoin seems to be slow but sure. Bitcoin’s rise has only been felt for one year, two years or more. This is why Bitcoin deserves to be called a long-term investment.
Need More Money to Trade Bitcoin
The price of Bitcoin at the end of 2020 has reached IDR 270 million. This increase was due to massive demand occurring from the middle of the year. There are several conglomerates and companies in the United States and other countries buying Bitcoin with a value of millions of dollars or trillions of Rupiah.
However, buying Bitcoin can also be started from a decimal fraction below 1 BTC. This means that Bitcoin can also be exchanged for 0.00001 or even cheaper.
At Indodax, the smallest fraction to buy Bitcoin is IDR 10,000 only. Cheap, right?
Bitcoin Only Owned by Conglomerates
Large conglomerates and corporations buy Bitcoin because Bitcoin is a safe asset during a pandemic. Meanwhile, other assets have not yet recovered. In addition, Bitcoin can also be used as an inflation hedge. That is, the increase in the price of Bitcoin will be higher than the increase in the price of other goods.
However, Bitcoin is not only owned by those who have millions of dollars. Anyone can own Bitcoin. Because you already have legality in Indonesia, you can also invest in Bitcoin starting from just ten thousand Rupiah in Indodax.