Greece to adopt Bitcoin as currency

[Erdogan]

Yep, you guys are right... A state can't really go and adopt Bitcoin, they need to distribute the money somehow, and they can't do this with Bitcoin. Just think of it this way: A state may want to use Gold as money, but it doesn't have any reserves and is already bankrupt. How are they supposed to get their hands on the gold in the first place???

With the same logic, it is clear that the state does not want gold as money, either. Historically, when gold was used by kings, it was because gold already was money. But they might want gold backed money, where they control the backing. It has two advantages for the state 1: All gold will flow to the government and 2: The gold backed money can be devalued at will. Only private money, denominated in some weight, gold or gold backed, but in that case with no central bank guarantee, will work (as sound money).

[BtcMagazin]

How could that possible? They can easily publish they will adopt Bitcoin as currency. Does it give them any help to ease the burden of large amount of debt and the collapse of their institutions?

[Erdogan]

On what day are pensions and government salaries due?

[BillyBobZorton]

Well, what alternatives does Varoufakis have at this point? What seemed a joke to me, doesn't seem that much of a joke anymore. It's clear they are stuck in a permanent loop of negotiations that never go nowhere, so they'll either end up disappointing all the country by getting fucked by Troika, go back to drachma, or start a crypto based economy.

[Amph]

Yep, you guys are right... A state can't really go and adopt Bitcoin, they need to distribute the money somehow, and they can't do this with Bitcoin. Just think of it this way: A state may want to use Gold as money, but it doesn't have any reserves and is already bankrupt. How are they supposed to get their hands on the gold in the first place???

Well, they could invest in a serious mining operation and use that money to distribute it.
Also jobs would get paid with BTC.

they have a high debit, and you are proposing for a big investment like that? it does not sound so smart

the only way for them now is to ask for more fiat at the BCE, and maybe then they convert a portion of this in bitcoin, by buying it directly, without all the hassle of the mining

they can use those bitcoin to move their economy(trade) with extra eurozone countries, in this way they could at least avoid the typical convertion rate with two fiat system

[oblivi]

Yep, you guys are right... A state can't really go and adopt Bitcoin, they need to distribute the money somehow, and they can't do this with Bitcoin. Just think of it this way: A state may want to use Gold as money, but it doesn't have any reserves and is already bankrupt. How are they supposed to get their hands on the gold in the first place???

Well, they could invest in a serious mining operation and use that money to distribute it.
Also jobs would get paid with BTC.

they have a high debit, and you are proposing for a big investment like that? it does not sound so smart

the only for them now is to ask for more fiat at the BCE, and maybe then they convert a portion of this in bitcoin, by buying it directly, without all the hassle of the mining

they can use those bitcoin to move their economy(trade) with extra eurozone countries, in this way they could at least avoid the typical convertion rate with two fiat system

The negotiations are already over, we are just watching a complete circus to keep things more or less stable until july, then things will have to come to the surface, and it's either more austerity measures for Greece or leaving for the drachma/god knows what else.

[minerpumpkin]

Yep, you guys are right... A state can't really go and adopt Bitcoin, they need to distribute the money somehow, and they can't do this with Bitcoin. Just think of it this way: A state may want to use Gold as money, but it doesn't have any reserves and is already bankrupt. How are they supposed to get their hands on the gold in the first place???

Well, they could invest in a serious mining operation and use that money to distribute it.
Also jobs would get paid with BTC.

they have a high debit, and you are proposing for a big investment like that? it does not sound so smart

the only for them now is to ask for more fiat at the BCE, and maybe then they convert a portion of this in bitcoin, by buying it directly, without all the hassle of the mining

they can use those bitcoin to move their economy(trade) with extra eurozone countries, in this way they could at least avoid the typical convertion rate with two fiat system

I agree, they can't invest in any mining operation. Following that logic, you would always make money by investing in mining operations or mining bitcoins yourself. The mining gear "arms race" of last year and end 2013 has showed us that buying coins is cheaper. And if they aren't able to just buy the coins, they also won't be able to invest in any mining operation.

[Erdogan]

To the question: How will a goverment aquire the bitcoins to use in a country? Well this is the whole point of bitcoin, they can't just by magic start with an amount of coins. Every coin has to be taxed to get in the hands of the government. When they tax, the public will want to know what the tax is for, thus limit the government.

This is also the answer to: Will a government adopt bitcoin as the currency of a country?

[ensurance982]

To the question: How will a goverment aquire the bitcoins to use in a country? Well this is the whole point of bitcoin, they can't just by magic start with an amount of coins. Every coin has to be taxed to get in the hands of the government. When they tax, the public will want to know what the tax is for, thus limit the government.

This is also the answer to: Will a government adopt bitcoin as the currency of a country?

But then - in this hypothetical scenario - the whole country of Greece would be left with no money at all for the people to use. If the left the Euro, the people would have no money whatsoever. Sure, they could keep their Euros, but the government would have to introduce a "better" currency in order to get them to use that instead. I don't know if this would work with Bitcoin.

[Erdogan]

To the question: How will a goverment aquire the bitcoins to use in a country? Well this is the whole point of bitcoin, they can't just by magic start with an amount of coins. Every coin has to be taxed to get in the hands of the government. When they tax, the public will want to know what the tax is for, thus limit the government.

This is also the answer to: Will a government adopt bitcoin as the currency of a country?

But then - in this hypothetical scenario - the whole country of Greece would be left with no money at all for the people to use. If the left the Euro, the people would have no money whatsoever. Sure, they could keep their Euros, but the government would have to introduce a "better" currency in order to get them to use that instead. I don't know if this would work with Bitcoin.

Bitcoin will not solve the problem for the greek government, no money type will - they are insolvent! They will have to default and start anew, with a smaller government. For individuals in Greece, bitcoin is useful.

[ensurance982]

To the question: How will a goverment aquire the bitcoins to use in a country? Well this is the whole point of bitcoin, they can't just by magic start with an amount of coins. Every coin has to be taxed to get in the hands of the government. When they tax, the public will want to know what the tax is for, thus limit the government.

This is also the answer to: Will a government adopt bitcoin as the currency of a country?

But then - in this hypothetical scenario - the whole country of Greece would be left with no money at all for the people to use. If the left the Euro, the people would have no money whatsoever. Sure, they could keep their Euros, but the government would have to introduce a "better" currency in order to get them to use that instead. I don't know if this would work with Bitcoin.

Bitcoin will not solve the problem for the greek government, no money type will - they are insolvent! They will have to default and start anew, with a smaller government. For individuals in Greece, bitcoin is useful.

I agree, I also believe that Bitcoin wouldn't solve their problems. And I was merely raising concern as to how Greece could actually adopt Bitcoin if they wanted to. And I continue to believe that they couldn't adopt it. Individuals could very well try to hedge their holdings and savings by using Bitcoin!

[cellard]

To the question: How will a goverment aquire the bitcoins to use in a country? Well this is the whole point of bitcoin, they can't just by magic start with an amount of coins. Every coin has to be taxed to get in the hands of the government. When they tax, the public will want to know what the tax is for, thus limit the government.

This is also the answer to: Will a government adopt bitcoin as the currency of a country?

But then - in this hypothetical scenario - the whole country of Greece would be left with no money at all for the people to use. If the left the Euro, the people would have no money whatsoever. Sure, they could keep their Euros, but the government would have to introduce a "better" currency in order to get them to use that instead. I don't know if this would work with Bitcoin.

Bitcoin will not solve the problem for the greek government, no money type will - they are insolvent! They will have to default and start anew, with a smaller government. For individuals in Greece, bitcoin is useful.

Greece is on a serious dead end right now, the political movements that once were supporting Syriza are now seeing what they have on store if they follow their steps. Only if they do something incredibly risky and revolutionary they will have my respect, because the alternative is continue getting buttfucked by Merkel's Troika.

[thezerg]

Well, what alternatives does Varoufakis have at this point? What seemed a joke to me, doesn't seem that much of a joke anymore. It's clear they are stuck in a permanent loop of negotiations that never go nowhere, so they'll either end up disappointing all the country by getting fucked by Troika, go back to drachma, or start a crypto based economy.

Either/or?  Try all 3.  Although you could argue that Greece started the fucking (by taking low interest loans they could never repay) and knew it:

http://imgur.com/rViiGrI.png (for the mythology-challenged the coin pictures the rape of Europa by Zeus... you've gotta admit, the Greeks have panache  )