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November 25, 2017, 06:20:48 PM |
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Financial risk
Another risk associated with Bitcoin is the value of this very famous currency itself is very volatile. In early January 2013, for example, Bitcoin is priced at 13 US dollars per chip (1 BTC). That number rocketed to more than 1,100 dollars a chip in December of the same year, then trimmed to only half (about 500 US dollars), just hours after the ban on Bitcoin transactions in China.
This makes the value of Bitcoin owned to be unstable and become a problem for business people who use the virtual currency. The price of goods and the value of money paid can rise or fall sharply in a very short time so that potentially harm one of the parties involved in buying and selling.
Tiyo Triyanto from IBC said that one way to cope with price fluctuations is to use a Bitcoin financial service provider such as Artabit. "Purchasers, for example, pay the price of goods that have been determined in the form of Bitcoin to Artabit, the rest is handled by them so that the risk is not in the hands of the user."
Assuming no excessive fluctuations occur, Bitcoin offers its own advantages for businesses that market their products online because there is virtually no transaction fees for buyers and sellers. Likewise for the purposes of money transfers made easy and cheap compared to conventional currency.
Like any currency or commodity, hoarding or hoarding behavior also occurs with Bitcoin. In India and China, for example, the largest number of Bitcoin demand is derived from profitable speculators. There is no possibility that the price of Bitcoin can crash if a large number of virtual coins are removed at a time, especially with the current condition of Bitcoin which many called being bubble.
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