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Prague Cryptocurrency

By the end of last year, only 2 buildings in the world have been bought using cryptocurrency, and one of them was in Prague.

The property, an apartment in the Strasnice district, was sold for 35 Bitcoins, the equivalent of over 5 million Crowns.

Reportedly there is a café accepting Bitcoin in Holesovice accepting Bitcoin for buns.

And on May 19, Prague will host a major conference on crypto currency and Block Chain Technology.

But the question on most people’s lips is ‘what the hell is it?’

It’s a form of currency, created digitally and regulated by Blockchain technology. Still not clearer?

Foto: fotolia

Ok, let’s say I give you my sandwich. I had it, I gave it to you, now you have it and I don’t. A simple transparent transaction. What if, however, I were to digitise my sandwich, and sent it to you by email?

You would have a copy of it, but how would you know I didn’t send it to a lot of people?

So, what if we link everyone’s computer together and we agree that only one sandwich exists. Everyone would know I sent it to you and would record the transaction. I couldn’t send 2 because everyone agreed from the get-go there was only one, and if another showed up, everyone would know about it.

In Blockchain technology, each link between computers is a Block. Separate from every other but connected too. It’s very difficult (but not impossible,) to defraud, especially as the network gets really big.

Anyway, getting back to my digital sandwich.  Is it worth anything? Well, there’s the debate. In terms of cryptocurrency, some say it’s worth a fortune and will replace existing currencies. Some say it’s a bubble and will burst. At the time of writing, in the last 24 hours, the value of one Bitcoin has fallen by £1,111. Tomorrow it may be up by a similar amount.

Like my digital sandwich, Bitcoin (and the other 1383 cryptocurrencies) aren’t tangible, it exists only in noughts and ones on your hard drive. It goes up in value only because enough people believe it will. But that’s the same as paper money say its defenders, and they’re correct.

There was a time when the pound in your bank represented a pound of gold in the Bank of England’s vault, but that hasn’t been the case since 1931 when Britain left the Gold Standard allowing the Government to print more money. So, what’s the difference? None, I guess. Once enough people agree to believe/accept the value of cryptocurrencies, then the currency will be truly born.

There are signs that that day is not far away; cryptocurrencies are becoming less volatile, a number of market leaders are beginning to emerge, and growing numbers of national Governments are proposing regulation, suggesting the birth date is nigh.


Perhaps Prague will be the nursery ground of those currencies? Like much that has occurred with cryptocurrencies thus far, your guess is as good as anyone's.

Author: Perry Wilson, a Wealth Manager with The deVere Group in Prague, Prague 08.03.2018

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