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Bitcoin Luxembourg – Blockchain and cryptocurrencies at full speed

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Having gone almost unnoticed by the general public in recent years, the blockchain and cryptocurrency phenomenon has been gaining momentum since the beginning of 2017 and has been accelerating since the middle of the year. The cause? The price of Bitcoin, the most famous cryptocurrency, has increased from $1000 at the beginning of the year to more than $ 18,000 in early December on some trading platforms.

While for a long time Bitcoin was the only geeks matter who saw a great technical invention and criminals who hoped to hide their transactions with an unregulated currency, it seems that today everyone wants to have some, everybody wants to be involved in..

This explains the soaring Bitcoin, the most famous cryptocurrency, but the others have followed the same movement: Litecoin, Ether, Ripple, Monero, and many others, the list is long.

But what set fire to the powder is the agreement of the SEC (US Stock Exchange authority) to authorise the creation of futures markets on Bitcoin, in other words we can now bet on the rise and downward of this asset as on the others, thereby removing the risk long advanced by opponents of crypto-currencies legislation prohibiting Bitcoin (at least in the West).

Distrust the banking finance

Since the financial crisis of 2008, individuals have seen bank failures (United States, United Kingdom, Iceland) and bank accounts seized with authority to bail out banks (Cyprus). Individuals and especially savers are very reserved about the safety of the banking system, and more worried because the debt ratio of the states has increased further since that date limiting their room to support the financial system in case of bankruptcy or new crisis.

Now admitted as a financial asset, crypto-currencies are not just means of payment. They allow to retain the value, the risk of legal prohibition now moving away, just like gold or other physical asset, Bitcoin with other cryptocurrencies can make it possible to cope with a possible fall of the international financial system, the blockchain principle governing these currencies being by nature decentralized and unregulated by central banks.

Cryptocurrencies the new far-west?

There is not a week without its share of rumors, piracy, scam about cryptocurrencies. Whether the bankruptcy of the marketplace MtGox (650 000 bitcoins were stolen in theory by hackers) or the cyberattack “Adylkuzz” simply consisting of a “Trojan” (like WannaCry) using a weakness of the Windows operating system in its old versions (not updated) and that uses the resources of the infected computer to create cryptocurrency Monero and repatriate these created Monero to the initiators of the attack and so enrich them.

Despite these recurring problems crypto-currencies are gaining momentum and nothing now seems to be able to stop the progression.

The ICOs how to create money from … nothing

An “Initial Coin Offering” is a technique that allows startups to bypass traditional financing and raise funds in a new cryptocurrency, in other words the investor brings dollars (or euros) and receives a new cryptocurrency created from scratch whose value is likely to be appreciated in two ways, first by the market itself (see the soaring prices of crypto-currencies these last months) and then by the activity of the startup whose development will allow the fame of this currency which will be used more for transactions and therefore will be desired by investors.

The blockchain as a cultural revolution

Crypto-currencies work with blockchain technology, a technology based on the sharing and public registration of transactions, this publicity guaranteeing authenticity (thinking that we do not see transactions made in Bitcoin is a mistake, they are visible to all). This is the exact opposite of the current system of centralisation (a central organisation that organises) and the secrecy of transactions. The blockchain is not just a technical revolution, it is a revolution of minds, transparency and sharing are guarantying the security and authenticity of data and transactions since they are shared and therefore not modifiable or manipulable.

The blockchain adapted to all sectors

Once this technological and cultural revolution is accepted, the blockchain finds its application in all fields: the currency/finance as we see it with crypto-currencies (Bitcoin in the lead) in terms of issuance andexchange platforms (how buy Bitcoins, how to store Bitcoins), but also in real estate with for example the American company Rentberry offers a platform for decentralised management of tenants and deposit with the blockchain and reward in cryptocurrency to any participant becoming tenants guarantor.

Conclusion

Well beyond a technical revolution and the only appearance of crypto-currencies blockchain is a cultural revolution that can be applied to all sectors of the economy.

Read also: Luxembourg – Cryptocurrency at the Central Bank?

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