I choose this interesting topic because of this topic related with the material that we want to discuss about. In other side, this is become my question why Indonesia block transaction using bitcoin that very interesting to talk about.

The list important in this topic is:

• About bitcoin, the progress that make them popular
• The technology that they use related with IOT and blockchain
• The country that already legalize this technology

The development of technology brings two side effects between good things and bad things, this also happens due to cryptocurrency which brings efficiency but also carries the opportunity of crime. One of the most famous cryptocurrencies is bitcoin, “the price of bitcoin in January 2011 is US$0.3 and suddenly the price blows up into US$14000 in December 2017” (Sianipar, 2017). The rapid growth price of bitcoin makes them famous and everybody started to find out what is bitcoin, the popularity of bitcoin also brings many new investors that started to invest inside of bitcoin. According to supply and demand, “the high demand of bitcoin brings the price of bitcoin going to the highest price which is US$19349 in December 2017” (Setiawan, 2017). Because of that many investors, starting created the platform for people to do transactions one of the famous ones is Indodax that active since 2016, while the government started to learn what is bitcoin and try to understand. Behind all the success of bitcoin, they have a strong reason why bitcoin become something that very popular and the reason why they make everybody started to use bitcoin that will explain furthermore below.

           The technology that Bitcoin uses to maintain its product is the blockchain system, this technology interested because it is related to the uses of the internet of things. So, the uses of blockchain also make a question of how they work? This technology work with the process of the transaction with more efficiency rather than conventional because they don’t use centralized infrastructure. “Bitcoin and blockchain could find the solution of older cryptocurrency regarding the double-spending problem. Double spending problem refers to uses the digital money for spending the same currency twice and bitcoin could find the solution using blockchain with system distributed consensus” (Anggorojati, 2018). The blockchain technology inside of bitcoin executed with the cryptography method which read by using a scripting language, so every user in bitcoin could do a transaction in the real-time transaction. One example when someone buying bitcoin, the system will detect and record the blockchain system and will directly give validity. The concept of the system, the information the coin you already buy will spread into other and record that is now yours, it will make that coins can’t acquisition by others because already record to hole system using the internet. The whole process of transaction data begins by a given seal for the buyer of bitcoin that will bring into a saving folder if the buyer sells their bitcoin to another person the seal code will change. The file between the old seal and new seal could be said as data that become a block, the saving folder of the block is the blockchain. Another source said, “blockchain inside bitcoins also can prevent corruption or fraud because the data will directly spread and when the data write it become immutable, because of this system of course could reduce or prevent fraud or corruption” (Poerhadiyanto, 2016). So, the technology of bitcoin can’t develop as high as now without help from the internet of thing, the help of the internet makes bitcoin could doing the blockchain technology with efficiency in terms of money and time, provide transparency, and speed. The intervention of the internet help Bitcoin by the easier and everybody has access due to the internet. Makes the capability of blockchain could be implemented very well if the connection and access are hard to find it will be hard to develop the blockchain.

           The rapidly growing of the technology in bitcoin also bring some breakthrough within some big country that seeing big opportunity toward this financial technology. Three big countries that started to legalize bitcoin are the United States of America, Japan, Finland. In the United States of America, Bitcoin could be used as online shop payment, school or college payment and even another bill it supports the uses of bitcoin. America seeing bitcoin as one of good technology that could help people with their efficiency technology, that could bring everywhere following the owner of worldwide technology. Another big country that uses bitcoin is Japan, Japan achieve payment in many retailer and store using bitcoin.” In Japan there is one store that only achieves payment using bitcoin and does not achieve any other payment, Japan believes that payment using bitcoin is easier, faster and without any cost” (Prayogo, 2017). Another big country that also believe to use bitcoin is Finland, Finland is one of the countries that aware of the development of technology. They provide in every Money machine or ATM for purchasing bitcoin, exchange and top up bitcoin easily, using ATM or money machine Finlandia could record the data on how many transactions happen in their country easily. However, in some countries they still reject bitcoin regarding their opinion, the opinion of bitcoin leads to defraud the money and also related with reality that happen in the dark internet that uses bitcoin as one of the biggest payments they use for doing crime. One of the examples happens in Indonesia, Bank of Indonesia makes a verified statement that using bitcoin for payment is a danger because there is no guarantee. But Indonesia not close to the development of bitcoin that could be useful in the development of financial and economy of Indonesia.

           In the conclusion, the uses of technology in the development of financial and economy especially cryptocurrency create a bigger benefit, this also the beginning of blockchain in the reality and one of the triggers for much new technology using this. The rapidly increasing price of bitcoin also shown how to work their system is, it also shown by three big countries that using bitcoin as one of their system which are the USA, Japan, Finland. But of course, the development of technology not always bring positive impact like faster, proven from fraud, and efficiency. They also bring negative impact due to use the good impact on doing crime transactions, because of that the development of this technology is expected to have strong regulation and guarantee to proven from using bitcoin as the payment of crime transactions.

References used

Accountant, I. o. (2016). Masa depan uang. Jakarta: Institute of Indonesia Chartered Accountant.

Anggorojati, B. (2018, August 20). Universitas Indonesia Fakultas Ilmu Komputer. Retrieved from Bitcoin, Teknologi Blockchain dan Internet of Things: https://www.cs.ui.ac.id/index.php/bitcoin-teknologi-blokchain-dan-internet-of-things-iot/

Poerhadiyanto, D. (2016). Masa Depan Uang. Jakarta: Institute of Indonesia Chartere Accountant.

Prayogo, C. (2017, November 7). Wartaekonomi. Retrieved from Ini 6 negara yang melegalkan bitcoin: https://www.wartaekonomi.co.id/read161176/ini-6-negara-yang-legalkan-mata-uang-bitcoin

Setiawan, S. R. (2017, December 7). Kompas.com. Retrieved from Nilai bitcoin sempat sentuh level tertinggi di Rp 261 JT: https://ekonomi.kompas.com/read/2017/12/08/071938826/nilai-bitcoin-sempat-sentuh-level-tertinggi-di-rp-261-juta

Sianipar, T. (2017, December 7). BBC INDONESIA. Retrieved from Bitcoin dilarang otoritas keuangan Indonesia, ini fakta-faktanya: https://www.bbc.com/indonesia/indonesia-42265038

b) How Blockchain work

This is an example post, originally published as part of Blogging University. Enroll in one of our ten programs, and start your blog right.

You’re going to publish a post today. Don’t worry about how your blog looks. Don’t worry if you haven’t given it a name yet, or you’re feeling overwhelmed. Just click the “New Post” button, and tell us why you’re here.

Why do this?

• Because it gives new readers context. What are you about? Why should they read your blog?
• Because it will help you focus you own ideas about your blog and what you’d like to do with it.

The post can be short or long, a personal intro to your life or a bloggy mission statement, a manifesto for the future or a simple outline of your the types of things you hope to publish.

To help you get started, here are a few questions:

• Why are you blogging publicly, rather than keeping a personal journal?
• What topics do you think you’ll write about?
• Who would you love to connect with via your blog?
• If you blog successfully throughout the next year, what would you hope to have accomplished?

You’re not locked into any of this; one of the wonderful things about blogs is how they constantly evolve as we learn, grow, and interact with one another — but it’s good to know where and why you started, and articulating your goals may just give you a few other post ideas.

Can’t think how to get started? Just write the first thing that pops into your head. Anne Lamott, author of a book on writing we love, says that you need to give yourself permission to write a “crappy first draft”. Anne makes a great point — just start writing, and worry about editing it later.

When you’re ready to publish, give your post three to five tags that describe your blog’s focus — writing, photography, fiction, parenting, food, cars, movies, sports, whatever. These tags will help others who care about your topics find you in the Reader. Make sure one of the tags is “zerotohero,” so other new bloggers can find you, too.