What are the Profits from Investing in Bitcoin?

Investing in Bitcoin has proven to be incredibly lucrative. In five months, the price of this virtual currency has doubled. On May 19, 2017, the price of Bitcoin surged more than 103 percent to US$1,938.04 (equivalent to Rp 25.78 million), compared to its position at the end of 2016. This figure also represents the highest price since its inception in 2009 and surpasses the price of gold.

In 2016, the price of Bitcoin also jumped more than 100 percent. In 2013, the exchange rate of this digital currency even soared by more than 5,000 percent. However, in 2014, it plummeted by more than 57 percent. Bitcoin is a digital currency that uses cryptography (cryptocurrency) to conduct transactions over the internet. Similar to real currency, Bitcoin can be used for online purchases and transfers between accounts via a Bitcoin wallet.

Despite becoming a widely used payment method in the digital world, the existence of this virtual currency, first introduced by Satoshi Nakamoto in 2009, continues to spark debate and controversy. Furthermore, it is not yet accepted as legal tender in many countries, including Indonesia. The exchange rate or price of Bitcoin is determined by the strength of demand from users of this digital currency, similar to existing fiat currencies.