Bitcoin Price Approaching IDR 400 Million

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JAKARTA - Bitcoin, the digital currency, again recorded its highest price, approaching IDR 400 million on December 27. This price has increased by more than 400 percent compared to the price in January 2020 which was around IDR 90 million.

"Bitcoin is now an increasingly attractive commodity and at the current price 1 Bitcoin is like having an apartment unit in Jakarta," said Indodax CEO Oscar Darmawan as quoted by Antara, Sunday, December 27.

According to him, Bitcoin recorded a good performance at the end of 2020. During December 2020 itself, the increase in Bitcoin almost doubled from IDR 230 million to IDR 400 million.

The high jump in the price of Bitcoin at the end of this year is completely beyond predictions. Initially, the Bitcoin price increase was predicted to only reach the level of US $ 20,000 or the equivalent of IDR 308 million (exchange rate of IDR 14,000) by many parties.

But it turns out that before the turn of the year, Bitcoin had passed this price level and even penetrated IDR400 million.

"The main cause of the significant increase in the price of Bitcoin is due to massive demand. Many companies from the United States (US) are buying up Bitcoin," he said.

For example, an insurance company, Massachusetts Mutual Life Insurance, bought up Bitcoin worth 100 million US dollars or the equivalent of Rp1.4 trillion. The Wall Street company also announced that it has invested US $ 530 million in Bitcoin.

In addition, he continued, there was a technology company, MicroStrategy, which announced that it had bought Bitcoin in the first phase for 250 million US dollars and the second stage for 225 million US dollars.

"The massive demand for Bitcoin has had a significant impact on price increases," he said.

Buying Bitcoin around the world is getting easier, besides the many exchange companies, PayPal also provides Bitcoin payment features.

The rise of Bitcoin purchases around the world is because investors consider this crypto asset with the largest valuation in the world to be the best performing asset this year and it has been proven for the last 10 years to continue to be the best performing asset in the midst of this digital era.

Even during the COVID-19 pandemic, Bitcoin has proven to be able to maintain its performance compared to other investment assets.

"Now, people have seen Bitcoin fundamentals that have been proven since the last 10 years and become a good inflation hedge," said Oscar Darmawan.

With the current price jumps making Bitcoin the most profitable investment commodity when compared to other investment instruments such as deposits, precious metals, stocks, bonds and even property.

According to him, demand for Bitcoin continues to increase worldwide while supply is limited so that the price of Bitcoin in the future has the potential to continue to rise in the long run, even some world banks predict the price will break more than IDR 1 billion per 1 bitcoin.

"This makes Bitcoin one of the most profitable investment commodities compared to other investment instruments," he said.