is there another "bitcoin" victim?
Lately bitcoin has become the most interesting topic discussed by some people. Bitcoin began to attack the community with a deadly stance and able to attract a lot of public interest, especially youth to invest in this crypto currency.
This phenomenon can not be ignored just because it concerns the fate of the economy, security politics and the sustainability of life later. Moreover, bitcoin one of crypto currency ditadang-gadangkan as a valid means of exchange that parallel to the rupiah currency that we use. Naturally the Minister of Finance, Bank Indonesia, and the Financial Services Authority (OJK) are so uneasy with the presence of these blockchain systems and technologies. As reported by Serambi Indonesia, January 23, 2018 "Government: Bitcoin haram in Indonesia" under the pretext of easy money laundering, financing of terrorism, lack of regulators and supervision that oversees bitcoin transactions.
Many world economic experts also gave their views on the rise of investment crypto currency. Robert Shiller, the Nobel Prize winner and author of Irrational Exuberrance and one of the most successful predictors of housing bubbles, the soaring house price because of the euphoria of society for future profits and eventually declining sharply as well.
Therefore I invite the readers to see further the phenomenon of bitcoin mania is deeper so that every decision that we will take will have at least some process of careful consideration.
Bitcoin itself is one of the crypto currency (virtual currency) created by Satoshi Nakamoto, has decentralized nature, is limited in number, not regulated by the government so its value purely from demand and supply in the crypto money market. To buy or invest in bitcoin is easy just a matter of minutes from creating a bitcoin account or wallet and then linking an account to the process of transferring money to a bitcoin wallet. Ease of access, personal data security also uses a peer to peer system without an intermediary party such as a bank, or other government overseer and transaction speed becomes another positive side that makes bitcoin favored by investors.
The other most recent way of making transactions in bitcon is by investing money into a bitcoin trading management company, that is, by the sale of bitcoins to profit from the difference between the buy and sell price.
Now many are hooked through this second way because it is easier, every member who joined simply handed money as determined and every 10 days the company will present a fixed income in the form of money transfer into account, this will be done until the contract expires.
The next question is whether the interest in bitcoin from this factor alone or because of other factors such as the desire to get fixed income money without working enough to invest some money?
If further investigated, the bitcoin value is identical with fluctuations or a very sharp rise and fall in prices. For example, in January 2017 the bitcoin price of US $ 1,175 / BTC rose to US $ 4980 / BTC. The drastic decline occurred during September 2017 to US $ 2,975 / BTC. Should it be used as a means of payment parallel to the rupiah how can we determine the price of the goods? Surely there will be a lot of chaos happening because of not fluctuating this currency.
Security Pass in Bitcoin
The security of investing with bitcoin is also much questioned after the tragedy of Nicehash and Youbit companies. Nicehash one of the service providers for the purchase of bitcoin ever hacked and suffered a loss of about US $ 4,700 BTC or about 60 million dollars (close to the price of 1000 trillions). Imagine if we are one of the bitcoin owners who use Nicehash services you may be one of those people who suffered financial loss.
While Youbit companies that move in the same field even fared worse, must be folded after hacked by hackers. The vulnerability of hacking and theft should make us a little more alert.
South Korea is the world's third largest bitcoin transactions country, and also held a massive raid against six banks including NHK Bank, Industrial Bank of Korea, Shinhan Bank, Kookmin Bank, Woori Bank and Korea Development Bank to ensure no one serves crypto currency bitcoin and other types). Even the Chairman of the Financial Services Commission (FSC) Choi Jong-Ku is very afraid of the existence of crypto money will bring adverse effects to his country such as money laundering, and unreasonable speculation.
How Does Bitcoin Prices Rise?
After I observed there are some things that cause bitcoin price movement so uphill. First, the high expectation of people to get passive income, in other words we simply invest some money to the company managing bitcoin then every 10 days will benefit the transferred kerekening each member.
Second, bitcoin is the money of the future, all future countries will use bitcoin like virtual money to make transactions, well before that happens we have to have it first. The advantage is definitely we can buy a cheaper price and can sell it with expensive price.
Third, the rich way instantly without working. Imagine that 100 million is enough to invest in a bitcoin provider and get this passive income easier than opening a business, for example having to spend a lot of energy for promotion and selling, not to mention the risk of unsold behavior. This way of thinking is done massively by many parties bitcoin enthusiasts to influence the community. Moreover, young people who tend to be lazy, but have strong financial support from parents, in this way they hope to become rich as easy as possible.
Fourth, expert predictions like Tom Lee, a Wall Street strategist, believe that the 2018 bitcoin penetrated the US $ 6,000 / BTC and in 2022 reached US $ 25,000 / BTC. In fact now the price of bitcoin penetrated the US $ 11,000 / BTC. This means that the confidence of experts in 2017 greatly affect the psychological community about bitcoin. Outside there are many economic experts who oppose bitcoin moves like Robert Shiller, Jamie Dimon, Stephen Roach and many more. Therefore we need to keep educating about the bad effects of bitcoin and similar crypto currents so that people are aware of this trap.
Fifth, bitcoin agent. They are the one who spread positive issues to the public, recognized or not very big role in influencing prospective investors want to join a member and of course with passive lure income.
Well, the five factors above cause the bitcoin price to soar over 1,000% over the year 2017. Whether the speculative bubble is said to have happened or has happened before or something like this has happened repeatedly and become human behavior in general.
Tulip Flower and Jade Stone of Aceh
Tulips were once a symbol of wealth and grandeur of his time. In 1593 M Holland imported tulips from Turkey. In its development, tulip trade changed the society's view of tulips (tulips not just flowers but the symbol of wealth and wealth storage instruments more attractive than gold).
In 1637 the price of tulips shot up to 6,000 florins (British coins) while Holland's annual income of 150 florins. We can assume that the tulips at that time were worth 40 times the income of the people of Holland. What if converted to the minimum income of the people of Aceh, such as Rp2.800.000 / bulan = Rp33.600.000 / tahun, then the price can penetrate tulip number Rp1.344.000.000. Fantastic is not it?
Nine years later, precisely in 1646 tulip interest prices decreased drastically enough and investors lost money.
The rationale of the decision to buy tulips with prices through billions can be proved by the market price of tulips now ranging from 300 thousand to 700 thousand dollars only.
The world was once thrown with the jade trade at one end of Sumatra island that is Aceh. Entering the year 2013, the assumption of jade is not just a handmade stone but began to assume that the jade is very well collected and resold. Psychological attraction of Acehnese society to jade seems to influence national and international market. Since then Aceh is known to have a super quality jade and even a lot of jade Aceh in trading out of the area after being transformed into various forms such as rings, bracelets, necklaces, glasses and the like.
I do not want to discuss more deeply about the superiority of jade of Aceh compared to other jade areas. The point of my observation, the jade price movement in the year 2013 to reach its peak in 2015, really make everyone amazed how the jade at that time worth millions of dollars if compared now the price may be hundreds of thousands only.
This phenomenon can be likened to the tulip phenomenon in Amsterdam, Netherlands. Have an introductory period, public expectations about higher prices in the future. Dissemination of information about good collecting it because it can be sold more expensive and ultimately tulips and jade prices back at a reasonable price.
Actually this speculative bubble phenomenon is very much, we can add as happened to the company of South Sea, 17th century MISSISIPI company, Wall Street in 1921, German 1923, housing bubble 2013 in America. The next big question will bitcoin fared the same?
Tulip and jade events and other speculative bubble sequences do involve the psychological upheaval of society, so the question of how much of a fair price is given to the object being traded is not on the basis of a single factor or intrinsic valuation factor. But it involves other factors more or less the same thing that happens to bitcoin. As I have pointed out above, the five factors that cause bitcoin prices to soar are psychological factors that are contributing to bitcoin prices in the market.
With such fragile ropes, are you sure bitcoin mania will not end up like tulips and jade of Aceh? After reaching the highest point of public euphoria on bitcoin, automatically after that bitcoin price will go down.
Robert Shiller says this is one of the symptoms of a speculative bubble (in economics defined where an object's sutau is given value / price exceeds its intrinsic value). The easiest way to see the speculative bubble is by seeing a very fast price spike like bitcoin in 2017 exceeding 1,000% and declining rapidly as well. According to Shiller, any bubble price event will end burst (explosion of price bubble down drastically). It's just a matter of time.
Chief Economist at Morgan Stanley Investment Bank, Stephen Roach in an interview by CNBC reporter Dan Murphy, said, "This is a toxic concept for investors. Over 30 years of work at Morgan Stanley has never seen a phenomenon like this where chart movement so uphill exceed 1,000 percent this year. Many investors do not have a good understanding of the crypto currency they just hope to profit from rising prices in the market. It is certain that the last person who entered the bitcoin trading chain will suffer a huge loss because at that time no one else dared to buy higher than you ".
And once again Roach agrees with Robert Shiller, every bubble must burst.
It all depends on you, I hope with this writing at least helps you in making investing decisions on crypto currency, either bitcoin or other types. If you or a company that manages funds get stuck at a high price when buying bitcoin, who will save you from financial losses? It is very different if you buy a stock that is sustained by real assets (in the form of ownership of the company) if the price falls as long as you buy a healthy company it will not be so influential as it gets dividends / profits shared by the company to shareholders.
There is one hadja Madja Aceh, "ube let tapak, taduek u bee let punggong" do not get for reasons of wanting to rich in quick time sacrificing the rationality of your thinking and your future.