Bitcoin fixes a Greek problem – but not the Greek debt problem

[LakeBTC]

Someone has finally managed to find a decent economic use for Bitcoin. This isn't what those of us interested in the nitty-gritty of economics ever really expected, to be quite frank.

All of which makes sense given the porous ban on exporting capital from China. (Even LakeBTC, a bitcoin exchange headquartered in Shanghai, is seeing a 40% increase in visitors using computers in Greece.)

Of course, he billionaires aren't having such problems but China's economic development has been so staggering that there's a vast middle class there now.

That is, people who really wouldn't mind getting a few tens of thousands of $ out of the country and into somewhere where you know that the law allows you to keep your own money. Once you're actually in that alt-coin world those bans on moving money across borders rather disappear.

[...]

http://www.theregister.co.uk/2015/07/16/bitcoin_fixes_one_greek_problem_but_not_greeces_problem/


But in the end of article, the author assumes that Assuming, that is, that one ends up using whatever tiny portion of the alt-coin universe that is not simply an out-and-out scam.

[Lauda]

Bitcoin can help with a lot of things, however it is not a magical tool for saving countries from bankruptcy. Actually I doubt that there is anything that is going to fix the Greek debt that we're seeing now.
The citizens on the other hand could have saved themselves if they had invested into Bitcoin much earlier.

[bornil267645]

I think whoever posted the topic "CAN BITCOIN SAVE GREECE", got caught up in the moment and thought this would make a nice thread. And one thing led to another voila, we had ourselves a very hot but irrelevant topic in our hand. But if we take a deep look at the main reasons for bitcoin invention in the first place; it was never about saving any country from bankruptcy, it was about giving people the freedom of using a currency.

[Eastwind]

If a state has to borrow bitcoin not printalbe fiat to fund it welfare system, it will think twice before borrowing. It will help its debt.

[Amph]

it was expected bitcoin a tiny market which is right now can't help a whole nation, to recover their whole debt

how cna someone think that a 4B market cap asset can help their huge debt, not to mention that many are bagholders and don't wnat to sell their coins

[Kakmakr]

Nobody in the Bitcoin community said, Listen Bitcoin will solve your debt problem. Yes, we did say that Bitcoin will allow you to move your money freely within your countries borders and beyond that.
Let's not inflate the situation, based on what is flying around in the media. They get it wrong 80% of the time, when it comes to Bitcoin. The debt problem is a whole other beast on it's own. ^hmf^

In reality, if all the Greek people invested their money early into Bitcoin, the price would have gone up and they would have been able to pay for some of that debt in the short term future. If they went back to the Drachma, their money would have been less valueble. <Some economist predicted up to a 50% drop in value>

[mezmerizer9]

Bitcoin canot save them and just a currency! If they bought early, it would just help them keep or transfer money! Their fundamental problem is still the same and keep borrowing money.

[aso118]

In reality, if all the Greek people invested their money early into Bitcoin, the price would have gone up and they would have been able to pay for some of that debt in the short term future. If they went back to the Drachma, their money would have been less valueble. <Some economist predicted up to a 50% drop in value>

Greek people making paper gains on Bitcoin wouldn't solve the Government's debt problems. 
If Bitcoin's price went up because Greeks decide to enter it as a short-term measure, it would also go down when they decide to exit.

[Q7]

Well it does solve the problem for the people by allowing the money to be stashed away for good and use it anytime when it is needed. After this round, I'm sure they realize how bad it is by keeping money in banks especially when it comes to chaotic situation. I do agree this helps the people but not the underlying problem for the whole economy. You still can't create money out of thin air.

[Herbert2020]

well it was very well expected.
because first of all bitcoin is not yet grown to the level that can save anybody and make a huge change, besides the price is so volatile that it can not be reliable

on the other hand people of the greece has accepted bitcoin (to some extent) not the country and the government, so it can only help the few who bought bitcoin.

[scarsbergholden]

Bitcoin can fix pretty much all the corrupted financial spending from government but governments are too happy wasting money and just using their people to keep getting on bigger debt.

[Scamc0p]

Countries that have the limit restrictions of how much is allowed out of their country is many. Even in 1st world ones, the limit to travel is $10,000. If they see more, they say you are trafficking or money laundering so they red flag you and confisiate that money.
The Phillipines  come to mind of which country uses the ease of the bitcoin network for transferring more than their allotted amount allows to their families.

[pooya87]

well, bitcoin can not solve the government debt issues , and all those increased visitors that everyone is reporting is just the people who desperately are trying to save up some money in a different form and maybe get some profit on top of it.

[galbros]

While bitcoin could not solve Greece's debt problem, in many ways as a deflationary currency it would be even worse for debt than the euro, it could have solved the citizen's liquidity problems caused by the closing of the banks.  So it would have solved one of the most damaging consequences of the crisis for them.

[jonald_fyookball]

If a state has to borrow bitcoin not printalbe fiat to fund it welfare system, it will think twice before borrowing. It will help its debt.

ha.  a government getting a loan in BTC.  no one on earth would make such a foolish loan.
that's the whole point of BTC, it's not a debt instrument.  the new era is coming where governments
will have to learn to live within their means.

[oblivi]

You have to generate the wealth, of course Bitcoin isn't magic internet money. You have to work for it so people are willing to give you their money. What Bitcoin does better than any currency is simply improving this tool of exchange, it's the best form of money we've ever seen. But again this doesn't mean a happy ending for every country that accepts BTC.

[Mageant]

Plan for a country saving itself from bankruptcy/getting rid of debt with Bitcoin:

1.) Secretly buy lots of Bitcoin.

2.) Announce that Bitcoin is now (by law) the official currency of the country.

3.) Profit from price rise (offer Bitcoin directly to creditors so that price won't drop).

Note that this will probably only work for the first ones to do it.

[aso118]

Plan for a country saving itself from bankruptcy/getting rid of debt with Bitcoin:
1.) Secretly buy lots of Bitcoin.

For a country like Greece, which is struggling to meet its pension payments, this is not an option. 

[Alexis]

Greece got margin called on OKCoin and lost everything 
They are left with less than nothing, and have resorted to selling itself (Islands) to celebrities and the EU. A bit like prostituting itself.

[Amph]

Plan for a country saving itself from bankruptcy/getting rid of debt with Bitcoin:

1.) Secretly buy lots of Bitcoin.

2.) Announce that Bitcoin is now (by law) the official currency of the country.

3.) Profit from price rise (offer Bitcoin directly to creditors so that price won't drop).

Note that this will probably only work for the first ones to do it.

they can't buy a lot of bitcoin, the supply is too limited in comparison to what bitcoin is worth today, and the real available coins are even less than many think, there is no work around for this

bitcoin value is simply to low to satisfy a whole country