[MUSIC] Blockchain technology, like any new technology, can be used for good or bad things. In this lesson, we will look at the flip side of the digital coin. We can't predict if all the scenarios of blockchain usage will succeed, or what an individual might do with the technology. But, we can be aware of the challenges, and potential misuse of the technology, and the implications of it. In this lesson, we'll look at some of those. Like often we hear, the first thing when we talk about cryptocurrency, that's just for criminals on black markets. it ain't so. But, cryptocurrencies are more or less working like cash, and the UK Bank, Central Bank for example, estimates that 25% of UK cash are used for illicit purposes outside of the traditional economic system. So yes, a high percentage of cash in every country is used for illegal purposes. And so, we will see illegal use of cryptocurrencies as well. But I ask you, should we ban all cryptocurrencies, like we should be banning all cash transactions? Probably not. The benefits of having a currency are outweighing the risks very, very often. And I think we will say the same with cryptocurrency. Bitcoin, as the gold standard of cryptocurrency, started to have the first bad reputation. But, if we start to peel back the onion and look a little closer, you can see that in the bitcoin blockchain, every transaction is actually completely transparent. So governments start to see the upside of using bitcoin and supporting the bitcoin ecosystem. Criminals will have moved from the bitcoin usage to other cryptocurrencies, that are providing a higher degree of anonymity. Currencies, like C-Cash or Monero, provide much higher privacy protection than Bitcoin, which in some countries and some environment might be beneficial, but it also has more often than not, a criminal scenario behind it. From an economist perspective, every restriction and force inefficiency comes with a cost. I ask all of us to be clear, who carries the cost, if you put an restriction on cryptocurrency blockchain technology, and really think through what´s in the best interest of the economy and the society, we have learned to deal with the black sheep as societies mostly. And actually, with blockchain technology a lot of countries see that through the transparency of the transactions, things like corruption for example, are much easier to track than they would be with cash currencies. But whenever there's money involved, some people simply try to engage and to steal it. So we need to be aware and protection of our currencies and of our infrastructure. There are bad player out there, so security and security models are absolutely important. And so, as money and technology evolves, so do the threats. And all of us need to understand, that bad players are out there. And we need to take responsibility for keeping our environment and our customers as safe as possible. Distributed ledgers and blockchain technology create unparalleled opportunities, and paradigms, and also risks. The technology, business, society, compliance and government regulations are discussions worthwhile having. Like when the Internet started, we have as a society have to have those discussions, how we can embrace cyber currency and blockchain technology to drive our environment, our economies and our societies forward in a safe way. Every technology brings challenges and opportunities. It can be used for good and it can be used for bad. It alters business models and create new ones. You always want to make the opportunity to create an environment that is the right for you.