Ir. Budi Rahardjo: the Bitcoin phenomenon is more like the ‘batu akik’ euphoria

In the recent years, the phenomenon of Bitcoin has been heavily discussed. The new digital currency is now worth up to tens, even hundreds of millions of rupiah. The growth of the Bitcoin exchange rate continues to skyrocket throughout 2017, and raises many predictions for the digital currency.

Lecturer of STEI-ITB, Ir. Budi Rahardjo, M.Sc., Ph.D., shared his opinion on this matter. According to him, as quoted from the article in, the Lecturer who is researching digital currency technology and cryptography, said that the phenomenon of Bitcoin’s skyrocketing value can be analogous to such as agate (“Batu Akik”) euphoria. “Remember the agate? It’s still there. But the price is back to normal, “said Budi to Tirto when contacted by phone (Wednesday, 20/12/2017). “If the euphoria is down, then the price will fall. Some are losing money and some are lucky, “added Budi.

In a post on his personal blog, Analogi Bitcoin, Budi also said that Bitcoin is currently like a food bazaar coupon that should be used to buy food but instead be traded. So people just sell and buy the coupon instead of enjoying the meal presented by the bazaar by redeeming the coupon. Budi concludes this with a stabbing question: “The bazaar will be over. How is the price of coupons after the bazaar is over? You know. ”

According to him, Bitcoin’s current position as an investment tool or “digital gold” violates its potential as a means of payment based on blockchain technology. Bitcoin as a digital currency based on a decentralized blockchain technology (not centered on one institution or server) has the potential to be used as a unique payment tool for transactions that are difficult to do via other payment methods. “For example, I sell electricity at my home from solar panels at a price of 10 dollars, a payment system that can accommodate 10 rupiah is not there,” said Budi.

more about bitcoin in article and Ir. Budi’s blog (Indonesian)