BIDR price prediction: What is BIDR?

Can BIDR bring stablecoins to Indonesia?

BIDR                                 
BIDR is linked to the Indonesian Rupiah - Credit: Currency.com
                                

Contents

The BIDR stablecoin is a stablecoin with a difference. Rather than being based on the US dollar, it is linked to the Indonesian rupiah. This means that making a BIDR price prediction, when the BIDR coin should, basically, be worth the same as the rupiah, that is, somewhere between $0.000065 and $0.00007, roughly speaking, may not be helpful. Nevertheless, this particular crypto has been attracting attention from outside Indonesia lately. Let’s take a look at it and see if we can find out what it does, who it is for, and how it works.

What are stablecoins?

The idea behind stablecoins is a reflection of the massive volatility that has an impact, both good and bad, on many cryptocurrencies. Because prices can fall and rise pretty substantially in a short time, many potential investors, who might otherwise like the idea of a crypto, are put off from putting their money. On the other hand, there are many issues that crypto enthusiasts have with a traditional, fiat currency.  For instance, there are potential concerns about the lack of privacy surrounding traditional currencies, which are regulated by central banks and governments. There are also some people who feel frustrated by what they see as a collective reliance on centralised financial institutions such as banks and regulators, while there are worries about people who do not have bank accounts, and their inability to access the worlds of finance. Iit is these people who are often seen as the motivation behind so much of the world of crypto, with their plight often cited by organisations and cryptocurrencies associated with the world of decentralised finance (DeFi).

The speed of fiat transactions is something else that comes in for frequent criticism, as well as the high fees charged to those who need to send money internationally. These issues are usually not a problem when it comes to crypto.

Stablecoins can serve as a kind of compromise. The idea is that they have the stability of traditional fiat, while they also have the privacy, flexibility, theoretical low cost and speed associated with crypto. Stablecoins are cryptocurrencies whose prices are pegged to a particular fiat currency. Some of them have reserves, with one stablecoin backed by one fiat currency unit, while there are also, somewhat controversially, algorithmic stablecoins. These use the supply of another cryptocurrency to maintain their price, with the regular crypto burned when the price gets too high, and the stablecoin burned when the price gets too low. This particular mechanism became notorious after the UST algorithmic stablecoin became depegged in May 2022, causing the LUNA cryptocurrency, which it was linked to, to collapse and bringing about a serious crypto market crash. 

Stablecoins are usually linked to one particular fiat currency, the US dollar. However, there is nothing in theory stopping a stablecoin being linked to one of the 179 other fiat currencies in the world.

BIDR explained

BIDR is one such example of what we might call an alt stablecoin. This crypto is not linked to the US dollar but rather the Indonesian rupiah. What makes BIDR notable is that, if we are being ultra technical about things, it is not really a stablecoin but, instead, a stabletoken. This is because, ultimately, it is based on the Binance Smart Chain, hence the name, which technically is short for Binance IDR, with IDR standing is the international trading ticker for the Indonesian rupiah. That said, phrases like “BIDR token price prediction” seem rather unwieldy, so we will not be using them here, not least because, as we will soon see, making a price prediction for a stablecoin is not exactly the most needed activity in the world of crypto. 

BIDR does not have a whitepaper of its own. Instead, there is some documentation, which is linked to the Tokocrypto exchange, which is, ultimately, the organisation behind the BIDR stablecoin. Tokocrypto has its own native token, called the Toko Token, or TKO. The idea is that people buy BIDR in order to utilise it to purchase coins and tokens on Tokocrypto. What, however, the documentation does not say is whether or not the stablecoin is backed and, if so, what it is backed by. There do not appear to be any signs of auditing. What follows on from that and may cause concern is the possibility that BIDR could be an algorithmic stablecoin. That particular kind of stablecoin has been under the spotlight since the depegging of UST caused the collapse of LUNA in May. Since we do not actually know how the price of BIDR is maintained, because there is no whitepaper, this may put off potential investors, because on the surface there is a considerable degree of uncertainty about the token's stability.

Rupiah
The rupiah forms the bases of BIDR's price - Photo: Shutterstock

BIDR price history

If we look at BIDR’s price history and combine it with a history of the IDR to USD exchange rate, we can see that the crypto has been, on the whole, largely pegged to the dollar since it first came out in the autumn of 2020. Even when BIDR reached an all-time high of $0.00007379 on 4 January 2021, that was not too far off what the rupiah was worth in dollar terms ($0.00007104) at the time. Likewise, the stablecoin’s all-time low, of $0.000063 on 18 April 2021 was, in general terms, in a similar sort of ballpark to the $0.00006866 exchange value of IDR.

With it operating in such a tight bandwidth when it comes to its price, any divergence on a price chart can look like a far bigger deal than it actually is. As of 19 July 2022, BIDR was worth about $0.0000666, slightly below the $0.0000668 that IDR itself was worth. At that time, there were 225.72 billion BIDR in circulation, out of a total supply of 645.7 billion. This gave the crypto a market capitalisation of about $15m, making it the 668th largest cryptocurrency by that metric. 

BIDR price prediction

In terms of a BIDR price prediction, we run the risking of falling into a fairly familiar trap. Because many price prediction sites make use of an algorithm to make the crypto forecasts, all we can see is that the algorithm predicts growth in the long term because, on the whole, markets tend to grow over time. For instance, PricePrediction.net has a BIDR price prediction for 2025 of $0.00027129 while DigitalCoinPrice makes a BIDR price prediction for 2030 of $0.000305. In both of these cases, the dollar would have to drop pretty substantially, or the value of the rupiah would have to go up considerably. As it stands, the exchange rate between the dollar and the rupiah has remained relatively stable over the past few years, so those prices do seem rather unlikely.

Final thoughts

The lack of a whitepaper might well leave some potential investors put off. Without a clear whitepaper for BIDR itself, we are left in the dark as to how the stablecoin maintains its price in relation to the rupiah. This does leave open the possibility that BIDR is algorithmically backed, which would cause a lot of concern afterwhat happened to UST.

There is also the question of what sort of reserves it has, if it has reserves at all.

Third, there is a particular limited usage for BIDR in general. It is based on the Tokocrypto exchange, which has been relatively popular in Indonesia, but has not crossed over to overseas success. As always with cryptocurrency, it is important to act with due care and consideration when it comes to investing in BIDR.

FAQs

How many BIDR are there?

According to CoinMarketCap, on 19 July 2022 there were 225.72 billion BIDR in circulation, out of a total supply of 645.7 billion.

Is BIDR a good investment?

It depends. The stablecoin looks likely to keep its value somewhere in the region of the rupiah, although with no information as to how it maintains its price, that cannot be guaranteed. We also do not know how IDR will work in relation to USD, so there is always the possibility that the stablecoin could do what it is designed to do and maintain the price of the rupiah, even if that means it goes down against the dollar. You will need to be careful and do your own research.

Will BIDR go up?

We don’t know. This will all depend on whether the Indonesian rupiah goes up against the US dollar. There is the possibility that it could rise independently, but if there is any significant growth away from the value of IDR, that would indicate that there is a problem with BIDR. It is important to also remember that prices can go down as well as up, even with stablecoins. We should also remind you that there is always the risk the BIDR could become depegged, which would see its price collapse substantially. 

Should I invest in BIDR?

This is a question that, ultimately, only you can answer. Before you do so, you will need to do your own research, remember that not only can prices go down as well as up but that stablecoins run the risk of becoming depegged, and never invest more money than you can afford to lose. 

Further reading

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