Abstract
Blockchain technology has been a phenomenal discovery since its use on Bitcoin, a crypto currency created by Satoshi Nakamoto. Featuring decentralization, it allows Bitcoin to escape the interference of third parties and governments. Departing from Keynesian Theory, this study used a mixed quantitative and qualitative approach. The econometric quantitative approach uses the Vector Error Correction Model (VECM) modeling to predict the impact of Bitcoin investment on Indonesia's transaction of capital. A qualitative approach is used to analyze the LOFT effects of Bitcoin on Indonesia's economic resilience. Unlike previous studies, this study attempts to provide an explanation from the standpoint of national resilience, especially in the field of economic resilience. VECM analysis found that Bitcoin had a significant positive effect on Indonesia's transaction of capital in both the short and long terms Even though the magnitude of the influence of bitcoin is relatively small, it needs to watch out for macro performance through capital transactions. Qualitative data indicate that there is a change of Bitcoin function in Indonesia, from a payment method, into an instrument of investment. The finding explains that Bitcoin has the potential to weaken the resilience of the Indonesian economy through a reduction in the balance of payments, while Blockchain can be the main foundation of the financial industry revolution in Indonesia.
Highlights
The invention of the Internet holds an enormous impact to the history of human civilization by making geographical boundaries no longer meaningful
We made the analysis using the perspectives of Keynesian theory and Economic Resilience to Bitcoin investment and its effect on Indonesia's transaction of capital
It has been statistically proven that Bitcoin has a significant positive effect on Indonesia's transaction of capital in both short and long terms
Summary
The invention of the Internet holds an enormous impact to the history of human civilization by making geographical boundaries no longer meaningful. The initial discourse of crypto currency has emerged in 1983, started by an American academic named David Chaum (Bonneau, 2015), with his idea of making a payment method for cyberspace transactions, with the feature of being untraceable and moving based on a special system that enables a currency to be signed or validated by others openly and randomly, not centralized or controlled by a particular party. This system is driven by the technology, which later became known as blockchain. Szabo is later suspected to be hiding behind the name “Satoshi Nakamoto”, a pseudonym used by the inventor of Bitcoin in a mailing list, the identity has never been verified until now
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