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Cryptocurrencies, such as Bitcoin and Ethereum, have seen a huge rise in recent years. The Forbes report states that a total of 21,910cryptocurrencies are traded in the cryptocurrency market. With an average exchange rate of IDR 18,579 per unit, the total market value reached 697billion, or IDR 12,949.56 trillion. On the other hand, Bappebti reported that the number of crypto asset users or customers in Indonesia reached 11.2 million at the end of 2021 , an increase of 48.7% compared to the number at the end ofNovember 2022 of 16.55 million.
While some see the growth of crypto as a revolution in the global financial system, others worry about its negative impact on the global economy as a whole. On the other hand, this growth shows that crypto already has public trust and can be used as an alternative for financial transactions.
Cryptocurrency Improvement
Since its creation in early 2009, Bitcoin has become the most well-known cryptocurrency symbol. Their value jumped quickly from a few dollars to thousands of dollars. According to Forbes, on January 3 2023,Bitcoin’s market capitalization value reached 267.1 billion USD, or the equivalent of IDR 4,962.45 trillion. The value of Bitcoin has continued to increase in recent years. The price of one Bitcoin in May 2016 was around 370, according to Forbes. However, on January 3, 2023, the price reached around 13,877, an increase of 3,651%. There are 21,910 other cryptocurrencies, each with its own uses and features.
Cryptocurrencies offer many advantages that you can take advantage of. They enable transactions without conventional financial institutions, giving individuals more control over their money. Additionally, blockchain technology is primarily considered secure and transparent.
But there are problems that must be overcome. There are concerns about security and unestablished regulation, and high price volatility makes it difficult to use as a stable means of payment.
Impact on the Global Economy
Experts are still debating about the impact of cryptocurrencies on the global economy. There are some experts who argue that cryptocurrencies could give people around the world more access to the
financial system than conventional banks. This can help increase global financial inclusion.
However, there are also concerns that cryptocurrencies could cause economic instability as high price volatility could disrupt global financial stability and cause macroeconomic disruption. The use of cryptocurrencies for unlawful purposes, such as money laundering and terrorism financing, must also be addressed.
Regulation
Cryptocurrency regulation is one of the most complex elements. Because cryptocurrencies are decentralized, it is difficult for governments to effectively regulate them. However, proper regulation can address concerns about security and stability while encouraging growth and innovation in the crypto industry.
The rapid growth of cryptocurrencies such as Bitcoin andEthereum has rapidly changed the world of finance. The total market value of cryptocurrencies has reached trillions of dollars in recent years, indicating huge adoption by society and market players.
While there are clear benefits, such as greater financial control for people and greater financial inclusion, there are also problems. To ensure the long-term stability of cryptocurrencies, regulatory and security concerns as well as high price volatility must be addressed.
The impact on the global economy still needs to be understood and researched further. Some experts see the potential for macroeconomic disruption and illegal use, but there are also concerns about the potential for increased access to the global financial system.
Regulation is an important part of the cryptocurrency industry to maintain innovation and consumer protection. In the right way, regulation can create a safe and stable environment for sustainable growth in a global economy increasingly connected to crypto technology.
