Sweden Officially Backs a Cryptocurrency, Establishing It As Their Official Coin

It’s finally happened: a major government has just bestowed a huge vote of confidence and legitimacy onto the world of cryptocurrencies. Sweden, in an unprecedented move, just announced that they are officially adopting a certain cryptocurrency as Sweden’s official coin!

The Swedish government just informed us that they have chosen a preferred firm for the purchase and marketing of their new coin – Kryptonex Research Group. The sales of Sweden’s coin officially started on Saturday, May 19th and currently these coins can be bought only from Kryptonex Research Group.

Industry experts weren’t surprised when Kryptonex was chosen by Sweden as their preferred firm for the release of their official coin. They had all seen for their own eyes the cutting edge insight that Kryptonex had brought to the cryptocurrency markets for their clients.

For CryptoCoinHubs, , Kryptonex Research Group is not an unknown company as we’ve received dozens of e-mails from our readers

This is a firm that is widely known as the best in the industry for getting the information that is only available to a select few that lead them to be able to give their clients calls such as the 1734% rise in VEN, or the 540% rise in ETH, or the crazy 3204% increase in EMC2, and the list goes on and on.

The most astonishing part of this news may just be that a Kryptonex representative also informed us that the starting price for the official coin will be only €0.30 CENTS! That’s right, their coin is incredibly inexpensive in comparison to most other coins out there. Bitcoin for example trades at €9,000 at the time of this writing, and Ethereum, trades at around €700.

In fact we were able to get the famed billionaire investor Michael Soros’s thoughts on Sweden’s new coin and this is what he had to say:

Michael Soros states: “Anytime a major corporation announces even a small partnership with an individual cryptocurrency that coin’s value skyrockets. I can’t wait to see what happens when a government officially adopts a crypto. When the name of Sweden’s coin is released many people will become millionaires practically overnight.”

A few of us at CryptoCoinHubs were curious enough to buy a couple coins just to see how everything looks and what the trading fees are like.

It was fairly easy to get the coins, but I will show you the whole process below for those that are interested.

First step was to fill out all the details. As you can see, nothing complicated so far.

Second step, I was taken to a deposit page to fill out my details.

For €250, I received 757 coins at 0.33 cents each. You can see current value of my coins on the same page.

The whole process was simple and I even received a phone call from one of Kryptonex Research Group’s friendly agents, but I didn’t really need any help as the whole process was easy enough.

To my shock literally after about 4 hours of finishing this article I checked my wallet again to see this:

In only 4 hours, the price increased from €0.33 to €0.68. At this point, I was positively surprised. I may either hold onto the coins or flip them for another coin that the people at Kryptonex told me about which they predict will also increase in price by 4 times in less than 48 hours. Their track record speaks for itself, no wonder Sweden chose them.

Kryptonex Research Group was kind enough to give us a 100% accurate coin movement price counter, so everyone can see the increase directly on this page.

OFFICIAL PRICE CURRENTLY
1 COIN = €0.66 CENTS
(Note – price is being updated every 30 minutes)

With a story of this nature news seems to be breaking every so often, we’ll be sure to update the story as needed.

You can find their promo video as well as direct coin sales by clicking on the picture below.

Philippines Legalizes Cryptocurrency in Economic Zone of CEZA

The Philippine government is welcoming nearly a dozen cryptocurrency companies to operate in a special tax-friendly economic zone situated in close proximity to a number of neighboring countries.

According to a Reuters report, the Philippines will legalize the entry of  top 10 blockchain and cryptocurrency companies to operate in the Cagayan Economic Zone Authority (CEZA), a government-controlled economic zone that is within an hour’s flight away from the likes of Hong Kong, China, and Taiwan.

The government aims to woo cryptocurrency companies to operate out of the economic zone with tax benefits to help generate employment opportunities locally, Cagayan Economic Zone Authority chief Raul Lambino told Reuters.

Notably, the official confirmed that the government will also license – in effect legalize – the cryptocurrency firms in the special zone.

The companies will also be allowed to operate exchanges, offer initial coin offerings (ICOs) and engage in cryptocurrency mining within the zone, he added, stating:

We are about to license 10 platforms for cryptocurrency exchange. They are Japanese, Hong Kong, Malaysians, Koreans…They can go into cryptocurrency mining, initial coin offerings, or they can go into exchange.

There is a caveat, however. Any exchange of fiat money into cryptocurrencies or vice-versa should be conducted beyond Philippines’ borders to avoid infringing the country’s laws.

To aid in bringing jobs to those companies, the economic zone’s regulator is also considering establishing a new financial technology university in the economic zone with a specific focus on blockchain technology, Lambino added.

The embracive stance follows newly introduced rules by the CEZA in February which allowed cryptocurrency companies to legally establish offices and facilities in the special zone. To gain a license, companies must invest at least $ 1 million in the zone over two years and pay up to $100,000 in licensing fees.

Meanwhile, in the mainland, the Philippines’ central bank was previously known to be reviewing the applications of a dozen operators vying to register and launch cryptocurrency exchanges in the country as recently as December. It remains to be seen if these operators have since switched tact to register in the economic zone instead.

The Philippines became one of the earliest nations in the world to publish regulations for cryptocurrency exchanges in early 2017. The deputy director of the central bank, appearing in a televised interview in October 2017, lauded the ‘pioneering regulation’ and said bitcoin, as a monetary instrument, is “fast, near real-time and convenient”.

Ethereum , Ripple and other cryptocurrecies values riseas Bitcoin price spikes

The price of bitcoin rose by $1,000 in less than an hour, sparking massive gains across cryptocurrency markets

Bitcoin’s sudden price rise has resulted in gains across cryptocurrency markets, with ethereum, ripple and litecoin all surging in value.

Within the space of an hour on Thursday, 12 April, bitcoin rose by more than $1,000 – breaking above $8,000 for the first time since March.

The movement’s of the world’s most valuable cryptocurrency is usually reflected across other virtual currencies, and this unprecedented spike was no exception.

Ethereum, which boasts a market cap of around $45 billion, shot up in price by 10 per cent, taking it close to $500. At its peak in January, one ether was worth more than $1,300.

Similar percentage gains were experienced by ripple, which has the third highest market cap behind bitcoin and ethereum.

The altcoin EOS saw the largest gains out of all the top five most-valuable cryptocurrencies, rising by over 30 per cent to take its market cap above $7 billion.

The market-wide shift follows several months of steadily sliding prices for bitcoin, which peaked at nearly $20,000 in December 2017.

Dramatic market movements are not unusual for the notoriously volatile cryptocurrency, which can often be triggered by positive or negative news surrounding regulation and laws.

The latest surge does not appear to be related to any significant news within the cryptocurrency space, however, with some analysts suggesting the gains come from a change in sentiment amongst investors.

“In this scenario traders with short positions will start to lose money and liquidate their positions by buying bitcoin,” Ed Cooper, head of mobile at fintech startup Revolut, told The Independent.

“This causes the price to rise further and as more people start to notice the rise they buy in for a quick gain. This continues the cycle.”

Despite the gains, Cooper advised investors to be cautious about betting on a positive direction of the market beyond the short term.

“We’d need to see a sustained rise over a number of weeks to signal the end of the bear market,” Cooper said. “We’re definitely not there yet.”

Bitcoin 7% Increase as Cryptocurrency Market Rebounds From Yesterday’s Losses

After dipping below $6,500, the price of bitcoin has increased 7 percent to $7,100, as the rest of the cryptocurrency market recovered over the past 24 hours.

Since March 30, the valuation of the cryptocurrency market rose from $250 billion to $268 billion, by around 8 percent.

Correlated Movements

On March 29, Cornell professor Emin Gun Sirer stated that a mature market should have assets that are performing independently from each other.

“Indeed, a mature market should be decentralized, with independent coin prices decoupled from each other, each moving in concert with the future prospects of the specific coin,” said Sirer.

For many weeks throughout February and March, the entire cryptocurrency market has demonstrated correlated movements, as the vast majority of both major and minor cryptocurrencies recorded similar gain and loss patterns with extreme volatility.

Today for instance, as the bitcoin price increased by 6 percent, Ethereum, Ripple and Litecoin all increased by the same 6 percent. With the exception of a handful of cryptocurrencies, which have been likely affected by pump and dumps, most of the cryptocurrencies in the global market have all moved in a similar pattern since the major correction occurred in February.

As such, given the extreme volatility in the market and its correlated price movements, it is evident that the market has not stabilized from its recent correction, and thus may need more time to recover from its losses.

The market demonstrated a necessary rebound from the $250 billion mark, and major cryptocurrencies like bitcoin have been able to sustain their resistance levels, even though volumes still remain relatively low across all cryptocurrency exchanges.

History

Bitcoin’s latest correction has been brutal, and it led to millions of dollars in losses for many individuals and institutional investors holding the cryptocurrency on behalf of organizations. But, it is important to acknowledge that identical patterns have occurred in the past, throughout 2013 to 2018.

2018’s bitcoin correction is the third worst correction the cryptocurrency has ever experienced, after two 80 percent corrections it suffered in 2013 and 2014. Both corrections took nearly 12 months for bitcoin to recover from.

The market moves up and down, and volatility is stronger in markets like the cryptocurrency market that have lower liquidity and volume than other regulated markets. The cryptocurrency market was not largely affected by the prohibition of cryptocurrency ads or other news relating to regulation, contrary to the narrative the media has tried to portray. Rather, it was the market simply acknowledging that the price of most cryptocurrencies have increased to a point in which they were difficult to justify based on tangibles and sustainable models.

 

Tron for example, was worth $16 billion, and neared the valuation of SpaceX. While it is entirely possible for Tron to achieve that market cap again in the future, Tron has only released its testnet this week.

 

The valuation of most cryptocurrencies were not proportional to the impact they had on the respective industries they were targeting, and the cryptocurrency market experienced a correction because investors could no longer support the prices of them.

Bitcoin Raise 7% to $8,460 Overnight as Cryptocurrency Market Rebounds

After dipping below $7,300 on most major cryptocurrency exchanges, the price of bitcoin has raised 7 percent overnight, increasing from $7,240 to $8,467, triggered by a variety of factors.

G20

Many analysts have attributed the recent increase in the price of bitcoin to the result of the 2018 G20 Buenos Aires summit, during which the Financial Stability Board (FSB), the global watchdog that oversees banks and financial networks as a representative of 20 major economies, stated that existing regulations on cryptocurrencies like bitcoin will be held and no additional restriction or regulation shall be issued.

FSB’s official report referencing FSB Chair and Governor of the Bank of England Mark Carney’s letter read:

“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. The market continues to evolve rapidly, however, and this initial assessment could change if crypto-assets were to become significantly more widely used or interconnected with the core of the regulated financial system.”

Previously, up until this week, several analysts noted that the upcoming G20 meetup has contributed to the decline in the value of cryptocurrencies, as investors anticipated the G20 financial watchdog FSB to crackdown on cryptocurrencies and issue stricter regulations. Investors expected major economies to come together to regulate the global cryptocurrency market with harsher policies.

However, governments have decided to accommodate existing regulations on the global cryptocurrency market, which are already strict in regions like the US and Japan, and follow the regulatory roadmap of leading cryptocurrency markets to facilitate the rapidly growing demand for the emerging asset class.

It is highly unlikely that the G20 meetup was the sole factor behind the recent price surge of bitcoin and the entire cryptocurrency market. But, the cryptocurrency market was in need of an optimistic and positive development to secure an upward trend again, after being in a slump for over a week.

Consequently, the valuation of the cryptocurrency market recovered beyond $310 billion, subsequent to falling below $280 billion, and is eyeing to initiate a short-term rally.

In previous reports, CCN emphasized that the January correction would require several months to recover because many investors were hurt by the decline in the price of cryptocurrencies. In 2017, the cryptocurrency market was considered the path for short-term profits. In early 2018, investors have stated to view the market differently, and speculators or weak hands have left the market.

2018 saw significantly developments in bitcoin, Ethereum, and other major cryptocurrencies along with emerging blockchain technologies. Yet, the price has not represented the magnitude of developments that have happened in the space, most likely because speculators and weak hands were not interested in the technology, but rather in short-term profits.

Short-Term

In the short-term, given the continuous increase in the dominance index of bitcoin, it is highly likely that bitcoin will maintain its dominance over the market in a volatile period like this. Bitcoin’s dominance index is already at 44 percent, and has been increasing since February, as more investors have started to eye bitcoin as a safe investment over other cryptocurrencies.

Cryptocurrency news: Will Litecoin ever overtake Bitcoin?

LITECOIN is currently ranked as the fifth cryptocurrency on the market, it has grown more than 3855.16 percent over the past year and has shot from $4.26 this time last year to a price of $168.49. So why has it experienced this remarkable growth and could it overtake the number one cryptocurrency bitcoin?

Litecoin was founded in 2011, two years after bitcoin was born.

The token is often referred to as the ‘silver to bitcoin’s gold’, as it was launched using the same code as bitcoin and its aim was to improve on the transaction speed of bitcoin.

Instead of using bitcoin’s SHA256 network, Litecoin used scrypt functions which helped to improve transaction speeds.

Bitcoin creates a block of information with data encrypted in 10 minutes, whereas Litecoin does it in two and half minutes per block.

As a cryptocurrency, it is favoured by traders as it is considered to be not as congested as bitcoin and is a lot cheaper as a result.

And experts claim Litecoin has asserted itself as a cryptocurrency which deserves to be in the top five, but does it have the potential to ever overtake bitcoin?

Will Litecoin ever overtake Bitcoin?

Litecoin has experienced remarkable growth this year, increasing in price by 3855.16 percent, compared to bitcoin’s 593.39 percent.

Bitcoin has been plagued by extended transaction speeds as users flood the network – many have said it has become a victim of its own success and has become too congested.

Despite this, experts do not predict Litecoin overtaking bitcoin any time soon.

Bitcoin was the first cryptocurrency on the market so has first advantage and is recognised as a well-know cryptocurrency name, Nicholas Cawley, analyst at Daily FX explained to Express.co.uk.

The number one cryptocurrency managed to garner a critical mass and drew in investors and traders, and Mr Crawley said he does not envisage Litecoin ever outshining bitcoin.

However the analyst also predicts Litecoin will overtake another cryptocurrency this year, which is currently fourth on CoinMarketCap.com.

“I think Litecoin will overtake Bitcoin cash but in market capitalisation terms will struggle to overtake Bitcoin,” Mr Cawley said.

Bitcoin Cash has just under 17 million tokens in circulation against a maximum of 21 million, while Litecoin has 55.5 million of a maximum 84 million in supply, so if prices remain the same litecoin’s market cap will grow faster than Bitcoin Cash.

“I also like the Litepal payment system and when we eventually see the launch of the Litepay debit card, then I can see Litecoin overtaking Bitcoin Cash.”

Kristjan Dekleva, head of product development at Blocktrade was in agreement and did not forsee Litecoin taking the number one spot on the cryptocurrency market.

Mr Tekleva said: “I don’t believe that Litecoin will overtake bitcoin. Litecoin does its intended job well for certain intents and purposes and has somewhat wide market penetration.

“But one it lacks the name recognition that Bitcoin has, which helps it stay where it is despite its flaws, and two there are numerous other altcoins that do Litecoin’s intended job, quick and cheap transactions, much better.

“Ultimately, it functions ok, but not well enough to break out of mid-market in the long run.”

While Andrei Barysevich, Director of Advanced Collection at Record Future, believes Litecoin has the capability to overtake bitcoin at some point, but not in the current climate.

“Bitcoin is not going anyway, everybody knows about bitcoin, in my view, it is going to remain as a gold standard. People will continue to use and continue to store money in bitcoin,” he said.

“However in day to day operations, I think Litecoin is to become more dominant currency, as soon as we start to see established e-commerce websites accepting Litecoin, that’s the time when i think Litecoin is going to dominate bitcoin cash.”

Mr Barysevich added to say he believes Litecoin will continue to experience growth in 2018 and will add on the success it is already experienced.

 

Israel: Steps Toward Cryptocurrency Support

In terms of technological innovation, Israel has been labeled by some as “The Startup Nation”with Israeli ventures raising over $5 billion in capital in 2017. This is almost 10% of China’s yearly fundraising total. While there’s a number of popular applications, platforms, and products including USB flash drives, the Waze navigation app, SodaStream carbonation machines, the country has set its foot in the crypto industry as well.

Back in 2017, Hapoalim, Israel’s largest bank, partnered with Microsoft to create a Blockchain-powered platform to “make the process of signing up guarantors simple and quicker.” And in February 2018, the Israeli Tax Authority (ITA) stated that cryptocurrencies will be taxed by the capital gains as properties.

On February 26, 2018, the country took it even further, when the Israeli Supreme Court handed down a decision that would temporarily block Leumi Bank, limiting a local broker, Bits of Gold, from facilitating the sale of cryptocurrency.

Though many were quick to laud the temporary ruling as ‘precedent-setting,’ it still leaves ample room for further developments. The judge ruling the case, Anat Baron, said that her decision was “not intended to harm the bank’s rights to analyze with specificity every transaction that takes place with the bank account or to take any actions that are related to minimizing risks.” This likely means cryptocurrency brokers and exchanges putting transparency first will be regarded as lawful—for now

Founder and CEO of Bits of Gold Yuval Roash sees this decision as justified, saying,

“Regulation is one of the things that has been important to us since the beginning. From the very beginning, we saw the problem with Bitcoin in terms of its anonymous characteristics, and we wanted to receive a currency service certificate—and we received it in August 2013.”

This is significant progress from December of last year, when a Tel Aviv district court ruled in favor of Leumi Bank, who had refused service to Bits of Gold because of Bitcoin’s inability to meet anti-money laundering standards. Bank Leumi had also been piggybacking on the Bank of Israel’s June labeling of exchanges as “websites that facilitate gambling transactions”, which is a sore spot for Israel especially. The country proved to be careful about upsetting the balance within its borders, and even blocked popular ride-sharing application Uber from an Israeli debut.

After examining the last five years of Bits of Golds’ operations, Judge Baron determined Leumi’s previous assumption that violations of the law would occur if Bitcoin were left unchecked were false.

In relation to the ruling, Yair Geva, head of the Hi-Tech Department of Israeli law firm Herzog, Fox & Ne’eman, remarked:

“It should be emphasized that the Court did not rule on the fundamental question—which has not yet been decided—whether Bank Leumi is entitled to refuse banking services for cryptocurrency trading. Although the final decision is still pending, it seems that this recent verdict of the Supreme Court will continue to give tailwinds to the tremendous growth of the crypto industry in Israel particularly, and to hi-tech as well as the financial industry in general. One of the reasons for this is that the Supreme Court clarified that Bits of Gold operated transparently and did not violate any statutory provision. In other words, the Supreme Court determined that currently there is no direct legal prohibition on cryptocurrency trading in Israel. It remains to be seen how regulators in Israel will respond to this landmark decision.”

Regardless of how regulators will respond, it’s already clear that progress on Israeli blockchain innovations hasn’t slowed.

“As with any new and promising technology, jurisdictions that instate well-balanced policies to promote innovation and adoption, will find themselves attracting talent and business to their ecosystems on grand scales. The best frameworks will be the ones that take a learning approach, allowing entrepreneurs and institutions to deeply understand how these technologies affect all stakeholders and develop the policies which are beneficial to most while educating the public on tradeoffs and accountability. Israel has always seen the advancement of technology as a strength and opportunity, and is well positioned to lead in Blockchain development and applications,” said Galia Benartzi, Co-founder of Bancor.

Itay Nagler, Israeli citizen and CEO of blockchain-driven travel startup Cool Cousin, says that Israelis, as a default, undercut the perception that things can’t or shouldn’t change.

“We are almost raised to believe that there is always a better, more efficient way to do things. That is one of the main reasons such a small country is home to many great innovative companies and individuals. This is also an explanation to why Israelis were among the firsts to adopt blockchain technology and crypto. A lot of us see it as a wonderful solution to many problems and our mentality of “no fear” to change, and relatively easy access to quality human resources and funding allows us to act on it. This, I believe, helped us during the past decades to position ourselves as pioneers and experts in many industries.”

Even though there were no concrete regulations of the industry before, it didn’t stop entrepreneurs from launching blockchain projects of their own. Bancor was one of the first major ICOs, raising over $150 million in mere minutes, and has its origins in Israel. IOTA , an IoT-focused Blockchain solution, recently opened an office in Tel Aviv, noting that the city is “a well-established tech hub, always ranking in the top 10 of start-up reports.”

These positive changes, however, go contrary to the recent decision by the Israeli regulators of not including companies involved in the crypto industry in the TASE, Tel Aviv Stock Exchange indices, due to its ‘trading volatility.’

Israel appears to be setting itself in the Blockchain ecosystem, along with the rest of the world, but tries first guarantee that the market’s grey areas be limited while its most useful attributes allowed to flourish

Vladivostok as Russia’s New ”Crypto Hub”

Bankers and government officials have discussed the possible creation of a crypto valley on Russia’s Pacific coast. Representatives of the Central Bank and the executive power in Moscow have taken part in the consultations initiated by the Fund for Development of the Far East. The city of Vladivostok, where local authorities want to allow cryptocurrency trade, may become a crypto hub.  

Test Site for Crypto Regulations

The Fund for Development of the Far East has proposed the creation of a crypto valley, centered on the Russian city of Vladivostok, its general director Alexei Chekunov told RNS. The FDFE, along with the digital platform “Voshod” [sunrise], are currently discussing the idea with representatives of the Central Bank of Russia and government officials. The necessary regulatory framework and the risks associated with the project are under examination, as well.

“From around $2 billion dollars raised though crypto assets offerings, Russian projects account for about 5%, or approximately $100 million. It is obvious that the potential of our country in this new and perspective field has not been fully realized”, Chekunov said. He noted that the FDFE had been tasked by President Putin to explore the possibility of setting up a financial center in Vladivostok. “We have proposed to combine these two initiatives”, he added.

Chekunov called the experiment a “Russian Crypto Valley” and described it as a “test site for technical and regulatory approaches”. This week a local representative of the Russian Association of Cryptocurrencies and Blockchain told lawmakers in the Duma that Crimea’s jurisdiction can also be used to test the crypto “phenomenon”. A couple of days ago the head of the Russian republic of Udmurtia urged deputies to quickly adopt regulations and offered its territory for pilot projects. Other regions want to set up large mining facilities.

FDFE has also announced intentions to turn Vladivostok into Russia’s first crypto hub, taking advantage of the special economic ecosphere in its Free Port. The Deputy Finance Minister of Russia recently said that authorities in the administrative center of Primorsky Krai were interested in hosting cryptocurrency trade. The nearby Russky Island has been mentioned as a zone of free crypto interactions.

“At the moment we are focused on finalizing the regulatory rules and analyzing the possible risks. The Voshod platform is ready to start operations with crypto assets. We are working with all interested parties to begin trading after the adoption of the legal framework in mid-2018”, FDFE director Alexei Chekunov said. The Fund for Development of the Far East was created by Vnesheconombank, the government owned Russian development bank.

Do you think Moscow authorities will create a crypto valley in the Far East to experiment with crypto technologies and regulations? Tell us in the comments section below.

Belarus Wants to Run a Global Crypto Hub

Belarus President Alexander Lukashenko, who’s labored for years under the title of Europe’s last dictator, is making a bid for a shiny new image as the continent’s freewheeling cryptocurrency king.

 Lukashenko, who’s ruled the former communist republic that’s wedged between Poland and Russia since 1994, signed a decree on Friday offering tax breaks and legal incentives for dealing in digital currencies in an effort to turn Belarus into an international tech haven.
 “Belarus will become the first government in the world that opens wide opportunities for the use of blockchain technology,” Lukashenko said in a statement in his website. “We have every chance of becoming a regional center in this area.”
 The decree legalizes business based on blockchain — the technology underlying cryptocurrencies such as bitcoin — and all digital “tokens,” as Belarus seeks to become a global crypto coin hub for raising funds via so-called initial coin offerings, or ICOs. Revenue and profit from all operations using digital tokens will be exempt from taxes until 2023, while there’ll be measures to simplify the flow of venture capital between Belarus and other countries, according to a summary of the decree published by Viktor Prokopenya, one of the businessmen lobbying for the legislation

Belarus is seeking to capitalize on a thriving tech industry that’s grown up there in recent years as young programmers have created products that appeal far beyond the borders of the former Soviet republic. The phone messaging application Viber was developed in Belarus as were the NYSE-listed offshore programming company EPAM Systems Inc. and the popular online gaming service World of Tanks, which made founder Victor Kislyi the country’s first billionaire.

Sandbox Haven

Even as Alphabet Inc., owner of Google, and Facebook Inc. snapped up Belarus-made startups, the country’s restrictive business environment made it all but impossible for venture capital to flow freely into promising ideas. Lukashenko’s new law may change that.

Belarus plans to cloak its repressive reputation with a “sandbox” — the creation of a legal tech enclave where companies working with digital currencies will pay no taxes and rely on some elements of English law in commercial matters, a radical innovation for a country whose security service is still called the KGB.

The sandbox would be set up within the so-called Hi-Tech Park, which the authorities opened in 2005 near the capital, Minsk, to try to spur innovation. Today, most of the park’s  residents are offshore software companies taking advantage of cheap and skilled local programmers as well as reduced taxes to serve foreign clients.

’Tech Nation’

Lukashenko said this month that his goal in signing the decree is to make Belarus a “tech nation.” The country’s major technology companies lobbied for the legal changes, which also gained support among government officials and in the central bank.

The novelty of the proposed law is that Belarus would provide legal clarity for dealing in digital currencies which is yet unseen in other countries, said Denis Aleinikov, whose law firm Aleinikov and Partners helped to draft the decree. It also establishes a direct legal link between issuers of tokens and their obligations toward the holders.

To protect against fraudsters, the regulation would set capital requirements for operators of cryptocurrency exchanges. It would also introduce “smart contracts” in Belarus — self-executable computer-coded applications that serve as an alternative to traditional paper agreements.

“The decree has been written exactly the way our tech community wanted it,” Vsevolod Yanchevsky, head of Hi-Tech Park, said in an interview in Minsk. “Belarus will be one of the best jurisdictions in the world for cryptocurrencies and blockchain.”

CRYPTOCURRENCY : From Centralization to Decentralization

CRYPTOCURRENCY

From Centralization to Decentralization

The major drawback of the traditional fiat currency payment system is high transaction fees with a long settlement period, which has led people to alternative currencies that allow for shorter peer-to-peer (P2P) processing time without intermediaries, resulting in a thriving market for digital currencies that have lower settlement risk. Prior to the creation of cryptocurrencies, there were many other types of digital currencies. The most common example is a digital currency created by an institution and transacted on a platform. Such currencies can be loyalty points created by companies or digital coins created by Internet-based platforms. The institutions or legal entities control the creation, transaction, bookkeeping, and verification of the digital currencies. In other words, these platform-based digital currencies are centralized. A notable example is the loyalty points of e-commerce companies like Rakuten and iHerb, which function like cash on the platform. Q-coin, introduced by the Chinese social platform Tencent, can be bought using the Renminbi and can be used to buy services at Tencent. World of Warcraft Gold is a game token that can only be earned through completing in-game activities and cannot be bought or exchanged into fiat currencies .

These centralized digital currencies are transacted within a specific platform and are designed to support the business of the issuing institutions. It is difficult to use them as a substitute for fiat money because these centralized digital currencies are not legal tender. Therefore, decentralized digital currencies seem a potential replacement for fiat money as no central authority is needed to verify the transactions. However, there are still many obstacles to overcome without the use of an intermediary or central authority. One main obstacle is the double-spending problem: It is possible to spend the same digital coin more than once. This problem has remained unsolved for a long time, discouraging the prevalence of decentralized coins. To ensure every transaction is accurately reflected in the account balance for digital currencies to prevent double spending, there is a need for a trusted ledger without a central authority.

The first cryptocurrency, eCash, was a centralized system owned by DigiCash, Inc. and later eCash Technologies. Although it was phased out in the late 1990s, the cryptographic protocols it employed avoided double spending. A blind signature was used to protect the privacy of users and served as a good inspiration for subsequent development. Shortly after the discovery of cryptography protocols, digital gold currency became popular, among which the most used was e-Gold. It was the first successful online micropayment system and led to many innovations, making transactions more accessible and more secure. However, the failure to address compliance issues finally resulted in its liquidation in 2008, despite an annual transaction volume of over US$2 billion .

The global financial crisis in 2008, coupled with a lack of confidence in the financial system, provoked considerable interest in cryptocurrency. A ground-breaking white paper by Satoshi Nakamoto was circulated online in 2008. In the paper, this pseudonymous person, or persons, introduced a digital currency that is now widely known as bitcoin. Bitcoin uses blockchain as the public ledger for all transactions and a scheme called PoW to avoid the need for a trusted authority or central server to timestamp transactions . Because blockchain is an open and distributed ledger that records all transactions in a verifiable and permanent way, it solves the double-spending problem.

Bitcoin and “bitcoin”

The cryptocurrency, denoted by bitcoin or BTC, can be accepted as a payment for goods and services or bought either from other people or directly from exchanges/vending machines. These bitcoins can be transacted via software, apps, or various online platforms that provide wallets. Another way to obtain bitcoin is through mining.

The Bitcoin system runs on a P2P network, and transactions happen directly between users with no intermediary. Bitcoin decentralizes the responsibilities of verifying the validity of transactions to the entire network. Transactions are recorded in the public ledger called blockchain and are verified by network nodes, which could be any individual using a computer system with Bitcoin software installed. Once users have made a transfer, the transaction will be broadcast between users and confirmed by the network. Upon verification, it will be recorded in the blockchain, and then the transfer is completed. This record-keeping process is referred to as mining, and people offering the computing power to do so are called miners. Bitcoins are created as an incentive for solving the cryptography puzzle using transaction data; thus, successful miners are rewarded with the newly created bitcoins, on top of transaction fees.

Each transaction contains inputs and outputs. An input has the reference to the output from the previous transaction, and the output of a transaction holds the receiving address and the corresponding amount . In general, in a transaction, a certain number of bitcoins is sent from a bitcoin wallet to a specific address, if there is a sufficient bitcoin balance in the wallet from previous transactions. Transactions are not encrypted and can be viewed in the blockchain with corresponding bitcoin addresses, but the identity of the sender or receiver remains anonymous. Typically, bitcoin wallets have a private key or seed that is used to sign transactions. This secured piece of data provides a mathematical proof that the coins in the transaction come from the owner of the wallet. With the private key and the signature, the account can only be accessed by the owner, and transactions cannot be altered by someone else.

Mining is also the process of adding newly verified transaction records to Bitcoin’s public ledger. The records are grouped and stored in blocks. Each block contains a timestamp and a link to a previous block so that the blocks are chained together, thus the name blockchain. The blocks are mined in sequence, and once recorded, the data cannot be altered retroactively. A complete record of transactions can be found on the main chain. Each block on the chain is linked to the previous one and can be traced all the way back to the very first block, which is called the genesis block. However, there are also blocks that are not part of the main chain, called detached or orphanedblocks. They can occur when more than one miner produces blocks at similar times, or they can be caused by attackers’ attempt to reverse transactions. When separate blocks are validated concurrently, the algorithm will help maintain the main chain by selecting the block with the highest value.

There are several systems by which miners can earn rewards through the mining process. Bitcoin uses the Hashcash PoW system and the SHA-256 hashing algorithm. Under the PoW system, rewards are given according to the number of blocks that are mined successfully. Therefore, mining is quite competitive; the miner who first solves a given puzzle or gets the highest value will take all the newly created bitcoins, and the other miners will receive nothing. Rewards thus encourage miners to take an active part in mining data blocks. In addition, mining usually involves a large amount of computation and can be quite energy consuming.

Another commonly seen system is proof-of-stake (PoS). Unlike PoW, no additional work is required under the PoS scheme because investors are rewarded based on the number of coins they hold. For example, a user holding 1% of the currency has a probability of mining 1% of that currency’s PoS blocks . In general, this system does not require a large amount of work for the computation. It provides for higher currency security and is usually used in combination with other systems, as in the case of Peercoin, the first cryptocurrency launched using PoS.

Because the supply of bitcoins is limited to 21 million, the bitcoins awarded to a miner for successfully adding a block will be halved every 210,000 blocks (approximately every four years), according to the Bitcoin protocol. When Bitcoin was first run in 2009, the reward amounted to 50 newly created bitcoins per block added to the blockchain, but the reward has been halved twice to 12.5 as of July 9, 2016. The supply of bitcoins on the network is 16.907 million as of March 6, 2018, with a total circulating supply market capitalization of US$ 159.1 billion.3

Features of Bitcoin

Decentralized. Similar to conventional currencies that are traded digitally, bitcoin can also be used to buy things electronically. Unlike any fiat money or platform-based digital currencies, however, bitcoin is decentralized. In other words, there is no single group or institution that controls the Bitcoin network. Its supply is governed by an algorithm, and anyone can have access to it via the Internet.

Flexible. Bitcoin wallets or addresses can be easily set up online without any fees or regulations. Furthermore, transactions are not location specific, so bitcoins can be transferred among different countries seamlessly.

Transparent. Every transaction will be broadcast to the entire network. Mining nodes or miners will validate the transactions, record them in the block they are creating, and broadcast the completed block to other nodes. Records of all transactions are stored in the blockchain, which is open and distributed, so every miner has a copy and can verify them.

Fast. Transactions are broadcast within a few seconds, and it takes about 10 minutes for the transaction to be verified by miners. Thus, one can transfer bitcoins anywhere in the world, and the transactions will usually be completed minutes later.

Low transaction fees. No transaction fee is required to make a transfer historically, but the owner can opt to pay extra to facilitate a faster transaction. Currently, low priority for mining transactions (a function of input age and size) is mostly used as an indicator for spam transactions, and almost all miners expect every transaction to include a fee. Miners historically have been incentivized mainly by newly created coins, but that is changing. As the number of bitcoins in circulation nears its limit, transaction fees will eventually be the incentive for miners to carry out the costly verification process.

Altcoin Market

Bitcoin is open source and the source code is available on GitHub.4 Therefore, coders around the world have been enlightened by the invention of Bitcoin and have created hundreds of cryptocurrencies, which are referred to as alternative cryptocurrencies, or altcoins. Bitcoin is not perfect. Every new purpose or pain point is an incentive to invent new coins. Coins are invented to address specific issues such as high computation cost of PoW, to increase the number of transactions per second, to increase the block size, to ensure that the ledger is not as transparent, to accommodate more efficient use of smart contracts, and so on. Moreover, to pay for development and launch expenses, developers can raise funds for the project even before the cryptocurrency is launched. In particular, initial coin offerings (ICOs), initial crypto-token offerings, and initial token sales are similar approaches to raising funding to develop new crypto-tokens and cryptocurrencies. ICOs allow people to invest in a project by buying part of its cryptocurrency tokens or prelaunched ERC20-compliant tokens residing on the Ethereum network in advance, typically based on a white paper or other documents on the project for investors to evaluate.

As of October 6, 2017, 869 cryptocurrencies and 269 crypto-tokens were launched and traded,5with a total market capitalization of over US$148.4 billion. Different from fiat money, cryptocurrencies have a circulating supply, total supply, and maximum supply. Maximum supply refers to the best approximation of the maximum amount of coins that will ever be created in the lifetime of the cryptocurrency, and total supply is the total number of coins existing at the present moment. However, some coins will have been burned, locked, or reserved or cannot be traded on the public market, so the circulating supply is computed by deducting those coins from the total supply. When determining the market capitalization, circulating supply is used because it denotes the amount of coins circulating in the market and accessible to the public.

Based on cryptocurrency market value as of June 27, 2017, Bitcoin dominated the market with more than half of the total market value and the highest price. Ethereum, Ripple, and Litecoin also have large market capitalizations of more than US$1 billion. In addition, the supply of different coins varies substantially due to the unique characteristics of each coin, and some coins are not mined, suggesting a fixed amount of supply. The price of the coins ranges from US$0.002 to well over US$1,000.

In general, some altcoins are very similar to bitcoins, whereas others are created by adopting very different methods or ideas. Market capitalization, different categories of altcoins, .

Appcoins, such as MaidSafeCoin, function like digital shares in a decentralized autonomous organization and are sold in token sales for a portion of future profits. Most altcoins are direct copies of Bitcoin, with some minor changes in parameters such as block-generating time and the maximum limit of coin supply. However, many altcoins have adopted other innovative changes. Among the widely accepted altcoins, Ethereum is the one with the most innovative ideas and widely followed besides Bitcoin. The value token of the Ethereum blockchain is called ether and denoted by XRP. It provides a decentralized Turing-complete virtual machine that features smart contract functionality, as do four other altcoins that have launched based on Ethereum: Ethereum Classic, Golem, Augur, and Gnosis. NEM falls under the third category in  (i.e., coins coded in a different programing language): It is operated using JAVA programming, as is Nxt. Stellar Lumens and Factom are excluded because they are based on Ripple and Bitcoin protocols, respectively.

To conclude, many cryptocurrencies other than bitcoin are traded actively with a wide assortment of features for investors to invest in. The complet coins list with over 1300 cryptocurrency , tokens and altcoins on https://cryptocoinhubs.com