Today, Bitcoin has broken the price of IDR 270 million per 1 BTC (around USD 19.300). It almost hit the highest price in history. Overall, the Bitcoin price increase so far this year is 170%. If you take it back, Bitcoin in early 2020 was sold for around IDR 99 million.
The early days of the pandemic caused the Bitcoin price to drop to IDR 65 million in March 2020. Slowly, the Bitcoin price then rose until it finally broke through the highest level. According to Oscar Darmawan, CEO of Indodax, the jump in Bitcoin prices almost reached the highest due to high demand.
Several factors contributed to Bitcon’s rise
Currently, many global people understand Bitcoin is a safe haven asset or as a protective investment asset in the midst of a pandemic crisis. “People understand that Bitcoin is a safe haven asset. In addition, many people think that Bitcoin is present as a new asset that can act as an inflation hedge, “said Oscar.
Oscar explained that there are several factors that support the increase in the value of Bitcoin. For example from the PayPal platform since October 2020 has allowed its users to buy and sell Bitcoin.
In addition, a number of large institutional investors expressed interest in buying Bitcoin. Guggenheim Partners, a Wall Street company also announced that it has invested USD 530 million in Bitcoin.
Another factor is the level of investors’ concern that the central bank’s efforts to deal with COVID-19 will trigger inflation. Gold and precious metals are usually used to hedge against this risk. Now investors think Bitcoin can also save current conditions.
“This is what keeps the demand trend continuously. The demand is increasing, the price is also increasing, “he explained.
Bitcoin Predicted to Touch USD 20,000He is optimistic that the price of Bitcoin will continue to strengthen and can reach the highest level of USD 20,000 or IDR 282 million. This is according to predictions written by Bloomberg.
In Indonesia, Bitcoin is regulated as a tradable commodity and is regulated by the Ministry of Trade regulations.
“So, Bitcoin trading is legal in Indonesia. People can buy and store Bitcoin in digital wallets and benefit when trading Bitcoin because there are basic rules, ”he said.
The Indonesian version of this article can be read in Gizmologi.ID