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What Cypriot assets? They lost Euros, which happens to be the same currency that their trading partners use, so there's no value to be gained relative to them.

And no, I haven't assumed that Bitcoin will regain in its 30% in value - it already has. But that it can gain (or lose!) so much value relative to the common currency is a big difference, since the common currency can't gain or lose value against itself.




If you believe that, and are given a choice between (a) an asset which is going to lose 30% of its value but then gain it back and (b) a confiscatory 6% tax on cash, you still prefer (b); you eat the tax, wait for the devaluation of bitcoin, buy bitcoin, and enjoy the appreciation.

Of course, that's a silly hypothetical, because the reality is that bitcoin (or gold) is just as likely to stay devalued longer than you can remain illiquid.

Your logic is based on the idea that Bitcoin must at some point return to some predictable equilibrium valuation, or even that it must appreciate. The point upthread was, no, obviously that's not true. Next week it be worth pennies, or nothing, and stay that way forever. Which is why moving all your money into Bitcoin is not a rational risk management reaction to confiscatory 6% taxes.


I'm not saying buying Bitcoins is a good move; I myself own none. I'm saying the two situations aren't similar.


I think you're making a moral comparison, not a practical one.




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