Keep Going Up! Bitcoin Price Reaches IDR 900 Million Per Piece

The price of Bitcoin now reaches 63 thousand US dollars (Blockchain News)

JAKARTA – One month after reaching an all-time high, the price of bitcoin has skyrocketed again. Bitcoin touched a new figure of USD 63.000 US dollars (approximately IDR 900 million) for the first time in the history of cryptocurrencies.

While the second highest cryptocurrency, Ethereum also touched its highest price on Tuesday, April 13. Other cryptocurrencies such as Ripple and Dogecoin have also experienced significant increases.

According to The Independent, the profit pushed the overall cryptocurrency market above USD 2 trillion (approximately to IDR 29 trillion). This number is higher than the two tech giants Facebook and Tesla combined.

Analysts predict this price rally is not over yet and will continue to rise. Some observers attribute this massive profit to the economic uncertainty caused by the lockdown regulations of world governments due to the pandemic.

Whereas before, in December 2020 bitcoin touched the figure of USD 20 thousand. But it suddenly jumped to USD 61.000 by 2021, according to a CoinMarketCap price index report.

Bitcoin has a limited supply, only 21 million bitcoins. Bitcoin's limited supply led investors to call it reliable "digital gold" as a safe asset during this uncertain period. Investors have turned to cryptocurrencies with fantastic amounts.

At the same time, governments around the world have issued stimulus and other policies to boost their economies to save jobs and businesses.

Market analysts warn that such methods could cause traditional (fiat) currencies to lose their value compared to limited commodities such as bitcoin.

"With the sharp decline of fiat currencies, investors began to lose confidence in (traditional money) storage and quickly realized the fact that bitcoin became better gold than gold (itself)", ITI Capital Capital Market Chief Stephen Kelso said as quoted by The Independent.

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"There are many reasons for this. As a digital asset, bitcoin is more cost-effective and more accessible than gold in the vault, which makes investors dependent on rising real interest rates. In addition, bitcoin allows direct access to its owners without relying on intermediaries such as administrators or asset managers, potentially different (in) jurisdictions".

Similar settlements will continue to push the price of bitcoin even higher in the coming months. The rise of bitcoin will also make Ethereum and other cryptocurrencies will also increase through the movement of their respective markets.

In the long run, the blockchain technology underpinning this cryptocurrency will also continue to develop its ability to transform the financial system through much more efficient payments and transactions through peer-to-peer networks.

"The ongoing pandemic may be driving the safe haven narrative for bitcoin, especially in emerging markets where bitcoin is in demand", said Paolo Ardoino, Bitfinex's Chief Technology Officer.

For information, safe haven is an investment that is expected to be maintained or increased in value when the market is volatile. Safe haven is a shelter for investors from losses when the market declines.

"While these all-time highs will make headlines, daily price movements have little consequence compared to the silent revolution that blockchain technology is making... This rally may mark bitcoin's first encroachment into the financial system and credit card industry", Ardoino added.