Problem with Greece is that the government (previous) had been giving money to easy. So the budget of Greece was full of holes by which money was lost. Today part of EU and current Greece government negotiations is to fill up the holes and change the way money are spent (which means cutting many socials and so on). Unfortunately Greece is not the only one in EU that been spending too much money and now have budget problems or will have in the near future.
As for bitcoin it may help in the future but right now Greece need to cooperate with EU or they will go down.
Topic: Bitcoin showing it's disruptive power in Greece (Read 276 times)
http://finance.yahoo.com/news/bitcoin-could-shift-balance-power-202835319.html;_ylt=AwrXnCegqodVeXkAfI7QtDMD;_ylu=X3oDMTByb2lvbXVuBGNvbG8DZ3ExBHBvcwMxBHZ0aWQDBHNlYwNzcg--
Over the past week, both the price and volume of bitcoin has been increasing (it's up 11 percent so far in June) - this is similar to the activity that occurred when Cyprus introduced capital controls in 2013. During the Cyprus crisis, citizens were not only locked out of their bank accounts but many found that some of their money was confiscated when the banks re-opened. This confiscation went by the "friendly" moniker "bail-in." In the Cyprus bail-in, any deposit above 100,000 euros were converted into Bank of Cyprus shares. Given this precedent, it is no surprise that Greeks are seeking a safe haven for their savings.
Since 2013, the bitcoin ecosystem has matured and it is now easier than ever to purchase and securely store bitcoins. This makes bitcoin the ideal instrument for Greeks to use as a store of value.
What is most striking about the use of bitcoin as a safe-haven asset is that doing so completely disrupts the balance of power between the government, the financial system and its citizens. Part of the European negotiating strategy with Greece has been to make conditions so bad for ordinary citizens that they force politicians to concede to onerous adjustments. So far, this tactic has failed to force Greece into a deal. I am skeptical of this tactic because Greek politicians have little to gain by accepting a deal with the European Union. Since the new government was voted in with the mandate to end austerity, it would be political suicide for them to accept a deal that continued down this path. It would also be economic suicide as further austerity measures will likely push Greece further into depression and result in an even higher debt-to-GDP ratio.
...What an interesting way for Bitcoin to serve as the confident alternative to the frustrations of poor government decision making!
Over the past week, both the price and volume of bitcoin has been increasing (it's up 11 percent so far in June) - this is similar to the activity that occurred when Cyprus introduced capital controls in 2013. During the Cyprus crisis, citizens were not only locked out of their bank accounts but many found that some of their money was confiscated when the banks re-opened. This confiscation went by the "friendly" moniker "bail-in." In the Cyprus bail-in, any deposit above 100,000 euros were converted into Bank of Cyprus shares. Given this precedent, it is no surprise that Greeks are seeking a safe haven for their savings.
Since 2013, the bitcoin ecosystem has matured and it is now easier than ever to purchase and securely store bitcoins. This makes bitcoin the ideal instrument for Greeks to use as a store of value.
What is most striking about the use of bitcoin as a safe-haven asset is that doing so completely disrupts the balance of power between the government, the financial system and its citizens. Part of the European negotiating strategy with Greece has been to make conditions so bad for ordinary citizens that they force politicians to concede to onerous adjustments. So far, this tactic has failed to force Greece into a deal. I am skeptical of this tactic because Greek politicians have little to gain by accepting a deal with the European Union. Since the new government was voted in with the mandate to end austerity, it would be political suicide for them to accept a deal that continued down this path. It would also be economic suicide as further austerity measures will likely push Greece further into depression and result in an even higher debt-to-GDP ratio.
...What an interesting way for Bitcoin to serve as the confident alternative to the frustrations of poor government decision making!
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