>If the Bitcoin crypto currency were more developed and widespread, this event could the silver bullet that would trigger the beginning of the end of the traditional banking system.
Like 90% of the past 5 years, this isn't a banking problem, it's a government problem. The IMF can suggest ways to fund a bail out, but the government has to accept it. Confiscating your citizens money is a horrible precedent.
Goverments steal purchasing power already via targeted 2% inflation. There is a precedent already - this is just a different way to skin the cat (or more to shear the sheep!)
Not really. Unexpected inflation hurts. Central banks don't hide the fact that they target positive inflation figures. If you stuff your money in a mattress, you will lose PP. Not if you put it in practically ANY investment vehicle, throughout history. Though, I get your point.
Nobody guarantees the value of your dollar earned over any period of time, nor that it won't diminish in value with the production of more dollars.
The news broke out today. All banks are closed on Saturdays except Co-operative Banks. However, even those were essentially closed today as people gathered to minimize their losses (ie, withdraw all their money from the bank).
Nobody could withdraw or transfer any money today to any account, period. No matter how much money you had.
A friend of mine, a banker, said that (he hopes that) these news are just a fear mongering attempt and that it will never pass through the parliament (scheduled for an emergency meeting on Sunday).
What I'm saying is that in theory there is nothing preventing you from "just putting their savings in bitcoin" but in practice, when you don't have cash and all your money is just numbers in a bank screen, you don't really have any savings.
The fact that the state can at any time take any percentage of your money is theft, plain and simple. It's not about being politically right or left, it's just theft and unlawful and absolutely unconstitutional. I really don't know how something like this can pass through the parliament but, at the same, I have zero trust on our politicians to act like rational human beings.
Personally, I wouldn't mind paying high taxes if I saw a real social, public, shared benefit for doing so. But paying high taxes, getting lower wages, and being ripped off so easily and without consent or even a warning is just too much.
More and more educated and skilled Cypriots are not even considering of going back to Cyprus, if they are abroad, and those who are in Cyprus are eager to figure out a way to escape.
In addition to this recent economic crisis, there's also a ton of political bullshit, fighting, and wars since the early 1900's and even before that. Unfortunately Cypriots, although a strong and proud people, were never able to grow a pair, agree on something, and fight for it.
You could avoid the risks associated with holding BTC by putting it in your mattress. Generally people say that this is a stupid idea, but it's doing 7-11% better than leaving it in a bank today.
