Bitcoin Forum

Why Greece Should Not Switch To Bitcoin

In some discussions about Greece exiting the euro, it has been suggested that Greece should swap the euro for bitcoin. At first glance, bitcoin may appear to be the cure. But if the euro is the problem, switching to Bitcoin would be like trying to cure a headache with a bullet to the brain.

...

If bitcoin is successful, it will not replace any country’s local currency, not even Greece. Bitcoin is poised to become not the currency of any particular country but the global, digital currency of the Internet, by the people and for the people.

http://techcrunch.com/2015/02/28/why-greece-should-not-switch-to-bitcoin/?ncid=rss

That's the most dumb analogy I've ever heard and an even more stupid explanation of why Bitcoin is a bad idea, people really still have no fucking clue about how it works and refuse to learn about it.

I would be shocked if any politician anywhere said that a currency with a fixed money supply was a good thing. Governments depend on the ability to print money to pay debt.

However, he is right that Bitcoin would not help Greece. The problem with Greece is not the currency. The problem is with their inability to control their spending.

When I can eventually get someone to look at Bitcoin they do understand it, the information is clear as day for anyone to look at, these people are either doing this on purpose or are a special kind of stupid.

There are many times when it's depressing when I'm right, but other times it can be absolutely hilarious :P

Seems to me the dude is merely pointing out why bitcoin is necessary for the people of the world vs fiat currencies which benefit govts and the special interests that feed off them. I thought the point was made rather well yet I can't imagine any govt-media 'news' outlet putting forth such a truth-telling article. This is the kind of article that needs to be passed around so people can reflect on what their fiat money actually does and internalize the fact that holding just fiat means they lose value over time thx to inflation.

If Greece switched and then continued to have financial problems due to debt the failure would be blamed on Bitcoin. A good idea would be to simply ignore the debt and start anew, like Iceland ;)

How do you "ignore" debt?  ;)  { In my opinion .... you can choose not to pay it and then your assets become someone elses property or you negotiate terms... } They have reached the point, where not even the assets cover the cost of the debt...  :(

They can hold onto the Euro .....but it would not change the spending habits. {The corrupt government is also not helping}

Yes, Bitcoin is not the 100% solution to their problem, but it could protect the value of their current money.  :(

Correct me if I'm mistaken but isn't volatility a huge problem when using Bitcoin as a main currency? A country that is facing a crisis isn't going to want to switch to a currency where the value can change so much in a single day. Or would volatility no longer be a problem once the size of the Bitcoin economy becomes large enough?

Another thing; the inflexible supply model of Bitcoin might not work well in some hypothetical situations. Not all economic problems are a result of the nation's currency and one of the means to sort out a nation's economy is some sort of flexible monetary policy.


Holding fiat does lose value over time if you store it under a mattress or buried in your yard but when stored in a bank, it can actually gain value as long as interest rates are above that of inflation. New Zealand (where I'm from) has an annual inflation rate of about 2.7 percent averaged over time while the interest rate for savings accounts tend to hover between 3 and 4 percent with term deposits approaching 5 percent or more.

I don't think it would be a good idea personally. Seems like too big of a risk with such a drastic change at the moment. Bitcoin needs time to grow.


I would actually prefer the citizens to adopt it as an alternative means if they wish, but not have it thrust upon them. This kind of growth would be better in my opinion.

wow more BS.

When is it ever going to stop?

Greece has to curb its spending and lives within means.

You can say that about practically any country. The US is trillions in debt but just keeps lending more with blatant disregard for their or the world economy and the tax payers always foot the bill http://www.brillig.com/debt_clock/

Yes. But people are willing to lend money to the US at the moment.

Of course they are because they get in back (eventually) with interest. It's just legalised money laundering of tax  payers money into the banks and private corporations.

Wences is saying that, for political and economical reasons, governments need to control the money supply. It's called monetary policy, and a country can't function properly without one. Like he said "It is akin to adopting gold as a national currency and giving up monetary policy".