Digital Currency that Rises in Leaves Besides Bitcoin

The bitcoin logo is attached to the ATM machine window at Waves Coffee House in Vancouver, Columbia. Photo / REUTERS / Andy Clark

By: Aulia Adam - August 16, 2017     Normal reading 3 minutes

Not everyone knows that Bitcoin is not the only crypto or digital currency available. Investment in other crypto is also common today.
tirto.id - The rival between the United States and North Korea which mentions nuclear weapons in the media, apparently has an impact on the Bitcoin exchange rate.

Last weekend, the price of one Bitcoin was closed equivalent to 4,224 US dollars or around Rp56 million. In the beginning of this week, he even touched the figure of 4,400 US dollars or equivalent to Rp58 million. Investors in financial markets turned out to prefer challenging investments in crypto aka digital currencies like Bitcoin, rather than investing in safe havens such as gold or US government bonds.

Bitcoin, with market capitalization for 71.5 billion US dollars or equivalent to Rp954 trillion (as of August 15, 2017), is indeed the largest crypto in the world until now. He is known as the "father" of all crypto, because it is present as the first decentralized digital currency. But, not everyone knows that Bitcoin is not the only crypto available. At least, from those noted by CoinMarketcap, a crypto exchange site, there are 848 other crypto, including Bitcoin itself.

Bitcoin came first in 2009. Two years later, Litecoin was present as a competitor. In March 2015, hundreds of crypto later followed. They present with their respective strengths, especially in security breakthroughs.

Bitcoin is known as the first crypto to introduce blockchain technology, which allows investment in digital currencies to grow. Basically, Bitcoin is electronic money transferred via the internet. It is distributed without the need to go through any intermediary including banks, directly from one person to another, so the transaction costs become much cheaper. Transfer time also becomes relatively shorter than banks.

He can even be accessed on a cellphone or personal computer via an electronic wallet. With digital money, we can also buy anything. Its use is as easy as sending an email. The security of the process is monitored and protected by a number of individuals called miners. They also verify each transaction which is then recorded in the internet cash book, meaning that it can be seen by everyone.

This technology is then followed by other digital currencies, but added to each other's distinctive breakthroughs. Litecoin, for example, was present in October 2011 as the first digital currency with a scrypt security system — which formed a keyword system based on the Key Derivation Function (KDF). Litecoin tightens the security of user passwords. They believe, similar to banking, security will affect the confidence of potential investors.

Now, Litecoin always enters the top 10 crypto with the highest market capitalization value. Until the beginning of this week, the value reached Rp. 30.5 trillion. But the exchange rate is still relatively low, 1 LTC is equivalent to around Rp.528 thousand.

In addition to Bitcoin and Litecoin that were first present, Ethereum is one of the crypto that is rising. In the first half of this year, the value of market capitalization rose even though it was unstable. When judged since the first time it came out in 2015, the value of ether - the term Ethereum currency - rose to 2,300 percent. Put it as the number two most commonly used and most valuable crypto after Bitcoin. CoinMarketcap recorded its market capitalization value of Rp. 374.1 trillion.

Compared to Bitcoin, Ethereum's growth is relatively slow. The Telegraph noted, in the first 18 months the exchange rate of 1 ETH was only equivalent to around 10 US dollars. Only in March rose slowly, and reached its peak with a value equivalent to 395 US dollars in June. Despite returning to 155 US dollars a month later in July. At the beginning of this August, he was back up at 298 US dollars.

However, compared to Bitcoin, the increase in Ethereum demand is higher in recent weeks. Especially in South Korea. According to CoinMarketcap, 40 percent of the enthereum trade is paired with the won, the South Korean currency. This is of course due to its geographical location which is close to the enemies of the US and North Korea. But, this increase has not managed to catapult the Ethereum value to the top again.

Among the top ten crypto with the highest market capitalization, only two of them recorded a steady increase. Besides Bitcoin, IOTA, the first crypto that offers free transactions. Compared to Bitcoin, the percentage increase in IOTA is actually four times higher. He entered the list of the top five crypto with the highest market capitalization price, valued at Rp36.4 trillion.

Another crypto that also experienced a surge was NEO, although it had dropped again earlier this week. Until August 12, the increase was 32.8 percent, but fell 7.58 percent on August 15. He entered number seven in the list of the top ten crypto with the highest market capitalization value. The value is equivalent to Rp. 30.5 trillion.

One of the wearers is Vinsensius Sitepu, an observer and practitioner of digital currency. "I hold 3.4 NEO. I bought a total equivalent to 500 thousand rupiah on June 20, 2017. Now the value is 2.2 million IDR, "he said, Monday, August 14, 2017. He himself saw the level of user confidence in the virtual currency from China was very large. "Because over the past week, NEO has scored some good performance, starting from the launch of the 2.0 version platform and roadshow in Japan," he added.

Reported by Forbes, NEO is indeed one of the rising crypto because of its breakthrough in the latest blockchain technology. It is one of the platforms that offers Smart Contracts — a software that can track and automate agreement fulfillment in blockchain technology.

Another crypto name that is also rising is Monero (XMR). It offers services that are not tracked, secure, and private, as opposed to transparent Bitcoin services. Make Monero a favorite of black world actors. Evidenced by the hacking of the temporal WansCry Ransomware that makes the world cry. His hackers convert the Bitcoin ransom they get into Monero, so the flow of this coffers is not tracked. In CoinMarketCap itself, Monero has penetrated to rank 13. Its market capitalization is up to Rp9.6 trillion.

Other crypto that are also popular are Ripple, NEM, and Dash, which are still in the top ten crypto lists with the highest market capitalization.

But, throughout its development, not a few crypto are closed and cannot compete. For example COINYE, a crypto company demanded by Kanye West — an American Hip-Hop artist — for using him as a logo. However, compared to the number that continues to increase, crypto-crypto fails does not seem to dampen the vibrant digital currency investment.

But that does not mean this investment is not risky. Because it is based on a free market, trading of digital assets such as virtual currencies has a high risk. The price is very volatile, can change at any time. Not to mention the risk of hacking on exchanger company sites, like what happened to Bithumb, in South Korea, early July.

Vincent, who invests digital assets in a number of crypto, has suggestions for those interested in investing in digital currencies.

"For newbies, they have to learn a lot from the start before jumping into this" game ". Digital currency ecosystem when the infant is still not mature. Beginners must equip themselves with as much information as possible to reduce the risk of big losses, "he told Tirto.

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Reporter: Aulia Adam
Author: Aulia Adam
Editor: Nurul Qomariyah Pramisti

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