Get to know Bitcoin and Cryptocurrencies

Bitcoin and Cryptocurrencies, Bitcoin, Cryptocurrencies

Get to know Bitcoin and Cryptocurrencies

Get to know Bitcoin and Cryptocurrencies

What are Bitcoins?

Bitcoin is a digital asset that was born in 2009. Its emergence stems from the claims of a developer under the pseudonym Satoshi Nakamoto, which states that he has succeeded in creating a decentralized and intermediary-free currency. Bitcoin itself is on top of blockchain technology ( distributed ledger ).

Bitcoin's decentralized payment method means that no single legal entity controls it, allowing you to accept digital currency payments from anyone around the world. Bitcoin itself also has a borderless character and can be converted into almost any local currency around the world upon request.

Bitcoin has a very volatile price and can experience price changes in a matter of minutes. Many people believe Bitcoin is the new digital gold. The value of Bitcoin has increased by 2300% between January 2015 and January 2020.

Unlike in the past, now you can buy and invest in bitcoin anytime and anywhere easily, quickly, and securely via a mobile application. One of them is to use the Pintu application with the excellent features of instant trading. You can also store and manage your assets conveniently in the Pintu app.

What are cryptocurrencies?

Cryptocurrency (commonly abbreviated as crypto only) is a digital currency asset that is secured using cryptographic methods on an open database called a blockchain.

There are 2 types of crypto, namely coins and tokens. The coin is a cryptocurrency that stands on its own blockchain for example bitcoin and ethereum, while the token is a cryptocurrency that "rides" on the blockchain of other native assets, for example, IDRT and USDT which rides on the Ethereum blockchain.

Crypto Use Case

The most popular crypto uses today:

Investment Instruments (Trading)

Volatility (value instability) of crypto assets is used by many as a long-term investment instrument. The value of bitcoin itself has jumped by 3000% from 2015 - 2020. In addition, crypto can also be used as a  hedge or safe haven  (an asset with lower risk than other instruments) like gold to deal with high currency deflation due to a recession.

Investment illustration:

If Anggita bought and held  Bitcoin in 2010 worth 100,000 Rupiah, now Anggita's investment value has reached 1.7 billion Rupiah!

Another example, if you start buying bitcoins in March 2019 you will get a 40% ROI  Year on Year in March 2020, in other words, if you buy bitcoins worth 1,000,000 Rupiah in March 2019, then now (March 2020) the value of your bitcoin is worth 1,400,000 Rupiah!

Value Transfer

Crypto allows you to send value/money quickly, anywhere, anytime. The advantage of crypto compared to legacy/banking systems (current banking financial systems), you can send money to friends or relatives who are in different countries 24/7 and it will arrive in minutes!

Plus, crypto transactions are transparent and can be verified in real-time because all transactions will be recorded on the blockchain so that they can be easily traced by anyone through the blockchain explorer.

While transactions can be executed quickly, there is the issue of price volatility that makes crypto values ​​change rapidly. Fortunately, with Pintu, you can send crypto assets with more stable values ​​such as Rupiah Token (IDRT) and Tether (USDT), which are stablecoins.

Illustration of value transfer:

Hendra has to buy merchandise from a  supplier in China and the goods are limited so Hendra must make a transaction as soon as possible. With crypto, Hendra can send the USDT purchased at Pintu to the supplier's wallet and the funds will be directly received by the supplier in a matter of minutes so transactions can be completed quickly. In addition, the status of the transaction can be tracked by both parties in the blockchain explorer so that it is more transparent.

Bitcoin and Cryptocurrencies, Bitcoin, Cryptocurrencies

Get to know Bitcoin and Cryptocurrencies