Upcoming Puerto Rican bankruptcy:Any impact on Bitcoin?

[tyz]

It is very likely that Puerto Rico will be officially bankrupt on 1st January 2016.
Does it have any impact on Bitcoin and/or crypto currencies?
What do you think?

[jaysabi]

I think the better question is what would make you think it would? (That's an "no" from me).

Also, we have to accept that PR will even go bankrupt. Since so many PR bonds are held by institutional U.S. investors because of the advantageous tax status of them, a PR bankruptcy would create ripples across the U.S. financial system which may not be small. A default may be more likely than a bankruptcy, and a default would create political pressure for some type of bailout. I personally don't think a bankruptcy is likely.

But in any event, bankruptcy or not, I don't expect PR to move the Bitcoin needle at all.

[tyz]

Interesting opinion. I did some research. I do not believe in an significant impact, too.

I think that the russian inflation (12.6% this year, higher inflation expected in 2016) will have a much stronger impact.

[jaysabi]

That's a good point. I think anywhere there is considerable inflation, people will be more open to alternative stores of value like Bitcoin. On the other hand, Bitcoin is also extremely volatile compared to the Russian currency, so it's not as if holding Bitcoin is necessarily less risky. Bitcoin can (and frequently does) drop 12 percent in a week, sometimes even a day. That makes a 12% annual inflation rate look stable by comparison. High inflation may move some folks to experiment with Bitcoin, but the risk is high enough that I wouldn't expect mass adoption because of it unless the inflation rate was out of control.

[Z00]

According to a newspaper, Puerto Rican bankruptcy would be the 4th biggest in the history. The country has got 70 billion USD debt.

[mobnepal]

According to a newspaper, Puerto Rican bankruptcy would be the 4th biggest in the history. The country has got 70 billion USD debt.

That may impact in other assets or doesn't impact any at all. But that couldn't have any relation with bitcoin and its price.

[darkangel11]

If they go bankrupt there should be no impact. If they decide to widen their acceptance of Bitcoin, the impact will be huge.

[fricircled]

According to a newspaper, Puerto Rican bankruptcy would be the 4th biggest in the history. The country has got 70 billion USD debt.

It is Jan 10 2016, nothing happened to the Puerto Rican. So the bankruptcy has been avoided or delayed.

[tyz]

Yes, the bankruptsy is delayed because the country has still some reserves to pay the bonds. It is expected that the country will be bankrupt within the next weekss.

http://www.cnbc.com/2016/01/08/insurers-ambac-assured-throw-latest-punch-in-pr-fight.html

According to a newspaper, Puerto Rican bankruptcy would be the 4th biggest in the history. The country has got 70 billion USD debt.

It is Jan 10 2016, nothing happened to the Puerto Rican. So the bankruptcy has been avoided or delayed.

[Pab]

Deleyed Puerto  Rico  bankruptcy
You will even not to see that in the newsJP Morgan bankruptcy can be much better

[jaysabi]

There is a legitimate question as to whether Puerto Rico can even declare bankruptcy. It has already defaulted, but that's not the same as bankruptcy, which is a court action.

[countryfree]

I can't imagine anything happening in Puerto Rico having an effect outside of Puerto Rico. Just look at Greece: it was huge drama for the Greeks, but nothing changed in Germany or in the rest of Europe. Where's Puerto Rico, by the way? I forgot.

[nonbody]

No, just small islamd.I doubt they have any legit bitcoin business there.

I can't imagine anything happening in Puerto Rico having an effect outside of Puerto Rico. Just look at Greece: it was huge drama for the Greeks, but nothing changed in Germany or in the rest of Europe. Where's Puerto Rico, by the way? I forgot.

google for you! https://en.m.wikipedia.org/wiki/Puerto_Rico
It has no any resource to produce, rely on imports, has huge amount of debt. I doubt how they will pay off. It is economy correlating with US.

[BellaBitBit]

I can't imagine anything happening in Puerto Rico having an effect outside of Puerto Rico. Just look at Greece: it was huge drama for the Greeks, but nothing changed in Germany or in the rest of Europe. Where's Puerto Rico, by the way? I forgot.

I have to agree with this.  We have seen these big crashes come and go with a lot of hype and nothing earth shattering happens to the markets, commodities, precious metals, or bitcoin.  I thought Greece was going to have an effect... but nothing.

[Swordsoffreedom]

It is very likely that Puerto Rico will be officially bankrupt on 1st January 2016.
Does it have any impact on Bitcoin and/or crypto currencies?
What do you think?

Just some ripples because of its relationship with the United States
Other than a small contagion effect I don't see a strong enough fear correlation unlike Iceland or Cyprus were.
The politicians are eating it up though being election season and all and Sanders press release etc.

[fricircled]

I can't imagine anything happening in Puerto Rico having an effect outside of Puerto Rico. Just look at Greece: it was huge drama for the Greeks, but nothing changed in Germany or in the rest of Europe. Where's Puerto Rico, by the way? I forgot.

As long as there is no run away inflation there, people will not reach for bitcoin to protect their wealth.

[DimensionZ]

Aren't Puerto Rico very close friends with the USA? Maybe Obama will offer financial help to bail the country out of the imminent bankruptcy?

[helloeverybody]

I think its very unlikely that the majority of puerto rico would end up putting their money (which they can actually get hold of) into bitcoin, but even if we can get a small percentage of those people it would be a great step for bitcoin. I can assume we will suffer a pump from the news though and maybe it will stay higher once said pump is over and done with. 

[Z00]

My guess: Not Puerto Rico will push the Bitcoin price in the next months, but China definitely will.

[fricircled]

My guess: Not Puerto Rico will push the Bitcoin price in the next months, but China definitely will.

If the Chinese guys put 0.001% of their wealth into bitcoin, the bitcoin price will go through the roof.