Change in substantial holding
The first cryptocurrency the world ever knew was first described by a software developer named Satoshi Nakamoto in 2010. In the white paper he wrote, titled ‘A Peer-to-Peer Electronic Cash System’, he defined a decentralised distributed ledger that would determine ownership of a virtual coin and record all transactions that ever occurred in serialised blocks of encrypted information.
This elegant concept used distributed cryptography and proof-of-work to validate new transactions. Every transaction or transfer ever made is added to a “ledger” held by every owner of the currency in the network, with each additional transaction forming an additional ‘block’ which is chained to previous blocks.
With blockchain technology, the entire transactional history of the digital currency is available for viewing by every computer on the network– preventing duplication or editing of records, and ensuring robustness and security: the data in any given block cannot be altered without the alteration of all previous blocks and all the blocks that come after it, which requires vast computing power and the collusion of the network majority.
Everyone who owned Bitcoins, and everyone who owns a Bitcoin later, would have and receive the same “ledger” updates. Most importantly, no editing of transaction records would be possible.
This removed the need for a trusted middleman or agency, such as a government or bank, to guarantee the transactions between buyers and sellers of goods and services.
The rise of bitcoin
In essence, this new currency works via a peer-to-peer network in which the participants jointly emulate the central server that controls the correctness of transactions, in particular: it ensures that there is no “double spending”, i.e., a given coin was not spent twice by the same party.
It could in theory overcome any hostile party’s attempts to undermine, change or control its records. What’s more, each peer is incentivised to stay honest because they were allowed to mine and own new coins by taking part in the proof-of-work for new transactions.
Most importantly, the currency is also invulnerable to attempts to manipulate its value by governments, as well as hard to trace.
The first ever recorded bitcoin transaction was made on May 22, 2017, when two Papa John’s pizzas were purchased for 10,000 BTC.
Skip forward to today, and BTC is now accepted for payment at over a hundred companies worldwide. The market cap of bitcoin has surpassed 100 billion USD, with the coin touching an all-time high of $19,783 on December 17th 2017 before dropping back to its present level below $10,000.
However, adoption of Bitcoin as a mode of payment is slowing.
One of the reasons is that as bitcoin began to be traded at higher and higher prices, it was increasingly seen as an store of value instead of a currency. Technological issues too, such as a slow transaction rate per second and rising transaction fees, means it is now more attractive for cryptocurrency punters to hold on for the long-term, than to use bitcoin for what it was actually created to do: pay for things.
Besides, there are now more 1,300 other cryptocurrencies in the market, many of them based on much faster technology and lower transaction fees, which makes them more practical to use and own as virtual currencies.
The rise of new cryptocurrencies
Like bitcoin, these new cryptocurrencies are “independent” currencies whose exchange rates fluctuate freely. They owe their popularity mostly to the fact that they have no central authority, and hence it is infeasible for anyone to take control over the system, “print” the money (to generate inflation), or shut the entire system down.
The majority of them are made available to the public globally via what is called Initial Coin Offerings (ICOs), which is akin to Initial Public Offerings (IPOs) held by corporations. A total of 235 ICOs were launched in 2017, raising a total of 3.7 billion dollars.
Virtually everyone who hasn’t been living under a rock has heard of these ICOs and the amount of capital they raised in short amounts of time, which is unprecedented in the history of capitalism.
But experts caution that most cryptocurrencies, including bitcoin, are overvalued, and that the ‘bubble’ for bitcoin itself will burst as it has not fulfilled its purpose as a currency.
Despite this, people are still buying many new cryptocurrencies during ICOs, as they want to cash in on the promise of quick and easy gains. However, many crooks too have jumped into the game, and many companies launching ICOs have inexperienced people at their helms as well.
How to choose a safe ICO
So, before buying into a new ICO however, ask yourself these four questions:
1. Does the ICO’s white paper inspire you with its vision? Or do you feel like you are afraid to miss out on value creation if you do not take part in it? This is the primary tactic scammers use to manipulate readers.
2. What is the team’s track record, reputation and trustworthiness?
3. Does that business or use case really require blockchain? Or is it simply using the word to generate buzz and raise capital?
4. Is it the onlu company delivering this kind of product? How does this company intend to differentiate itself from the rest in future?
Not all ICOs will make money in the long term; not all ICOs are scams. So do your due diligence before committing your hard earned money.
For more information on ICOs, please contact us at 02 8880 3688 or email us at email@example.com
Indonesia’s start-up financial technology (fintech) industry is a hotbed of innovation. In 2016, the Indonesia Fintech Report 2016 reported that there were more than 150 fintech startups in Indonesia, and that this number had increased by 78% from 2015. 
By September 2017, the fintech industry was assessed in a CNN Indonesia report as having the greatest potential for growth in Indonesia, which is itself the largest country in South East Asia with a population of over 261 million – twice the size of the Philippines.
Analysts in the CNN report projected that every digital business in Indonesia will eventually need fintech services. Fintech is especially considered a high-growth sector in Indonesia because:
1. Indonesia is a country of Small and Medium Enterprises (SMEs)
Indonesian SMEs contributed 60.6% of Indonesia’s GDP in 2015. Deloitte (2015) highlights that Indonesian’s SMEs have created a total of 107.6 million jobs in Southeast Asia.
In light of this, the Indonesia Government under current President Joko Widodo has in recent years rolled out a slew of packages and measures aimed at supporting the growth of its SMEs, including digital startups, to boost the country’s status as a startup destination.
2. Indonesia has fewer banks (and branches) compared to other economies
According to Data World Bank (2015), banks with fewer branches are unable to maximise customers’ usage of their services, particularly in rural areas. 
Financial technology can help these banks improve their delivery of services to existing customers in rural areas. Additionally, fintech is expected to provide Indonesian SMEs with wider and cheaper access to loan facilities, money transfers and other financial services, hence galvanising the growth of the economy in tandem with local fintech.
3. Cash is still King in Indonesia
Both traditional and online purchases in Indonesia are still dominated by cash payments. According to Emarketer, Indonesian online shoppers are not familiar with digital payments, and 65.3% of them are more comfortable with cash on delivery (COD).
In fact, only 36 percent of Indonesian adults have bank accounts, according to the World Bank’s 2014 Global Findex database. This presents multiple opportunities for fintech startups to bring banking services to those who are not currently being served – the unbanked and unbankable – which together make up over 60% of Indonesia’s adult population.
4. However, The Future of Indonesia Is Cashless
Even while over 60% of online shoppers in Indonesia prefer cash on delivery, fintech is creating more ways for Indonesian citizens to go cashless.
The rising popularity of various local online marketplaces such as Tokopedia, Bukalapak, Blibli, Mataharimall and Elevania, is leading to ever more online shoppers using e-payments services or virtual wallets to pay for their purchases.
Customers are encouraged to use these e-payment services via cashbacks and marketplace discounts.
5. The Indonesia Government Is Long On Digital Startups
In Indonesia Fintech Report 2016, Bank Indonesia defines Fintech as a transformative business model that combines financial services and technology, allowing both unregulated start-ups and regulated financial institutions to provide banking services.
In 2014, Bank Indonesia announced the launch of a national cashless movement called the National Non-Cash Movement, which aims to build public awareness of non-cash payment instruments, thereby gradually fostering a less-cash society.
In 2016, the Indonesian government launched a 1000 Digital Startups National Movement program (Gerakan Nasional 1,000 Startups Digital) https://1000startupdigital.id/i/. This program aims to turn Indonesia into ‘The Digital Energy of Asia’ by developing 1000 digital startups by the end of 2020, with an expected total valuation of around $10Bn.
The government has also announced plans to establish a dedicated section within its main stock exchange to host initial public offerings by startups. This would lead to the set up of a new trading market at the Indonesia Stock Exchange called the ‘technology board”, to make it easier for founders and investors to take their startups public, thus enabling even easier access to capital.
By November 2016, the Indonesian government had also, through its Central Bank, launched new regulations on Payments Transaction Processing to provide legal assurance for new and existing payments business activities.
In addition, the Indonesian government has created a Fintech Office (through Bank Indonesia) to facilitate discussions, share ideas, provide market intelligence, and assess the benefits, risks and potential of fintech startups. The Fintech Office will also provide assistance to fintech startups with regards to government policies.
Under the framework of the Fintech Office, a regulatory sandbox has also been established which allows fintech startups to test and develop their business models in a safe space before roll-out to customers (Jakarta Globe, 2016).
Conclusion: Indonesia’s Fintech Industry Is Set For Explosive Growth
With the government’s support, and digital payments set to grow along with e-commerce in one of the world’s biggest markets by population, Indonesian’s fintech space is now one of the most potentially rewarding places in the world for fintech investment.
And with a wide footprint in Australia and Asia, R3D Global Limited is well positioned to provide pertinent information and research on Indonesian fintech companies. Contact us at +61 2 8880 3688 or email us at firstname.lastname@example.org to discover more about this sector.
 Indonesia’s Fintech Report 2016
https://dailysocial.id/report/post/indonesias-fintech-report-2016, extracted 8 Jan 2018
 Fintech Diprediksi jadi Bisnis Paling Potensial di Indonesia
 Indonesian Economy: Micro, Small & Medium Sized Enterprises
 Indonesia’s Tech Sector: A Look At Government Policies, Promises To Buoy The Emerging Economy
https://inc42.com/indonesia/indonesia-government-policies-tech/, extracted 8 Jan 2018
 World Development Indicators 2015
https://blogs.worldbank.org/opendata/release-world-development-indicators015, extracted 8 Jan 2018
 Cash On Delivery Still Wins Among Digital Shoppers In Indonesia
 Indonesia Reaches Out To Unbanked
http://www.thejakartapost.com/news/2016/10/29/indonesia-reaches-out-to–unbanked.html, extracted 8 Jan 2018
 Bank Indonesia Launches National Non-Cash Movement
http://www.bi.go.id/en/ruang-media/siaran-pers/Pages/sp_165814.aspx, extracted 8 Jan 2018
 Aksi Perdana Gerakan Nasional 1000 Startup Digital Di Kota Surabaya
https://1000startupdigital.id/i/guide/press-release-ignition-surabaya, extracted 8 Jan 2018
 Indonesia plans to create startup IPO market to draw investors
 Bank Indonesia Issues Rules for Payment System Service Providers
Doing business in China can be a very risky venture for companies who do not have the knowledge, connections and experience working with the Chinese.
In the past decade, China’s economy has been transformed through manufacturing and exporting. China has been produced 80 percent of the world’s air conditioners, 70 percent of the world’s mobile phones and 50 percent of the world’s shoe production. (Source: BCG 2017, The Guardian 2017). The main appeal factors that China economy has been growing rapidly are:
1. Lower Cost Labour
Workforce is one of the vital resources in companies. The essential attractions of doing business in China is the availability of lower cost labour. According to Bay Source Global 2017, labour cost can be reduced by as much as 80 percent by shifting operations to China.
2. Raw Material Cost
China offers a cost-effective option for access to lower raw materials. These, in turn, translates to lower manufacturing cost and production cost.
Apart from those factors, there are several aspects that shape the growth and new opportunities in China including:
1. Rising middle-class population
Currently, more than 50% people in China has been moving from rural areas to big cities. It will affect their spending lifestyle. According to research by PwC, middle-class households in urban cities will increase by 50 percent within the next five years.
2. Government policies
The government is actively planning and creating ‘smart cities’, as well as investing in infrastructure to support the growth of business operations in China.
3. Explosive e-commerce activities
Consumer behaviour in China is rapidly evolving. According to the Economist 2016 and Business Insider 2017, online businesses in China have grown to over $100 billion within a short period of time. E-commerce in China has shaped new and unique shopping experiences for consumers and created new opportunities to many businesses.
Understanding the above factors are crucial if you are considering expanding your business to China. There are also other factors that need to be observed and explored like the language and culture in China. Learning how to speak with Chinese business partners in Mandarin is essential. The Chinese prefer to deal with people who can speak Mandarin. Trust must be built first with partners and clients before engaging in business deals.
As with any new endeavour, R3D Global encourages you to always do your research first before expanding to new territories. It will be useful also to reach out to people who are already connected in China or who understand their cultures and business policies.
For more information, please contact us at +612 8880 3688 or email email@example.com.