Recalling the history of the development of the medium of exchange, it seems important to place the current position of the cryptocurrency electronic currency as a transaction instrument. In the past, salt (salarium) was used as an intermediary for transactions. The use of the salarium as a medium of exchange was initiated by the idea that in a barter system, exchange difficulties occur when there are large quantities of goods to be exchanged and there are security risks on the road. For that, we need a practical medium like wasilah. Furthermore, individual needs at the household level, rather than focusing solely on one item, For food only, they also need rice, vegetables, spices, and so on. If only one type of good is exchanged with a large capacity, there will be only so many exchange transactions to fulfill that one individual need.
With the existence of this medium of exchange, they become practical. They are free to go anywhere, and then, through the medium of exchange, they get everything they need. In effect, the medium of exchange becomes a necessity. There is work and energy that must be mobilized in order to master and obtain this medium of exchange. Weighing the drawbacks of the salarium, then switching to animal skins, then precious metals, then copper as a form of small denomination, then paper declaring a guarantee of ownership, and finally precious papers The latest, because the paper-making materials are decreasing, is to switch again to the use of digital cards.
This means that changes that occur in currencies and their models cannot be separated from a need for practicality, security, and exchangeability. Exchange power is born from the belief that the money formed has a guarantee that it can be used in exchange and has carrying capacity. We believe in transfer notifications via ATM or credit card because of the proven and repeated truth. Although the physical money we do not see
With this transfer machine technology, we can also appreciate the meaning of 1 rupiah value. With the provision of e-banking, I can transfer funds to any party, even though the currency reads 12 rupiah. In fact, if we were to look for the physical form of the 12 rupiah currency, we are sure we wouldn’t find it. Or maybe find it, but how difficult? As a result, these electronic cards and e-banking become valuable because they make 1 rupiah worth of money again. Today we enter the era of digital technology. With internet technology, we can easily reach any part of the world. The pace of trade is becoming increasingly accelerated with physical presence still in place. What is fast is the movement of his thoughts and data. While the physical remains the same in a recreation location or wherever it is located, In fact, you might even be able to contact a marketplace and make a sale and purchase transaction while you (sorry!) are still in the restroom, or even feeding a baby. However, this rate does not pass the toll road, which is free of data traffic. You are transferring money to another savings account. In essence, you are walking to the bank, then filling out the transfer documents at the bank, and then debiting the money to be sent to a certain number of accounts. So, three grooves or even more. From you, to your bank, to your friend’s bank, and then to your friend’s bank Four-point path In fact, transactions can already be done by direct contact. Why not just have a medium of exchange that connects you directly to your friends? If you are a blockchain and your friend is also a blockchain, why not just make transactions from blockchain to blockchain, or peer to peer (P2P)? Isn’t this more concise?
For this reason, a P2P exchange was created with an agreement in the form of a medium of exchange agreed upon by the two blocks. Then, what form of exchange is appropriate to make P2P continue, of course, on a digital basis? It is certain in this case, if this last wasilah was created, then there must be a way of being able to maintain the security of the intermediary, and at the same time, not be easily falsified electronically. Finally, they finally found a special cryptographic password which later became the basis of cryptocurrency. How Do Cryptocurrencies Have Exchange Rates? Presumably, the case of this cryptocurrency has its own ‘ainiyah position, resembling an era where paper money was still guaranteed by gold. Cryptocurrencies have exchange rates with a fixed reference to the value of conventional currencies. For example, let’s take the example of Bitcoin. 1 BTC, for example, costs 1000 USD. In fiqh, we read that 1 BTC is proof of ownership of 1000 USD. We call it “proof of ownership,” because what is used as a medium of exchange in business transactions is conventional currency, and not Bitcoin. Why? Because Bitcoin is a virtual currency that cannot be printed, but is recognized as a means of ownership that can be cashed in. Today, there are at least three ATM machine locations. Several sources that the author had referred to said that this ATM machine is useful as a converter from BTC to USD, or IDR (rupiah). Departing from here, it is clear that BTC is one of the examples of cryptocurrencies. In capital market parlance, it seems that this BTC resembles issued securities. In effect, it has collateral value. And unfortunately, this time around, cryptocurrency is still showing symptoms of high volatility. Crypto prices today could be different from crypto prices tomorrow.