[2016-11-16]Bitcoin Bull Run Alert: Italy to Begin Banking Bail-In

[WishICanTurnBackTime]

Bitcoin Bull Run Alert: Italy to Begin Banking Bail-In

Bitcoin has proven a few things true over its relatively short existence in human history. One, it has proven that it is not going anywhere, regardless of how many times the mainstream media pushes it into the cornfields. Two, the inherent value of Bitcoin’s currency and underlying technology are so strong and undeniable that the world’s largest nations, banks, and corporations are building their future business models around it. Thirdly, Bitcoin is the world’s newest financial “safe haven,” as market turmoil means great gains can be made in the world of digital currency like Bitcoin.
This truth may come into play once again, as the year comes to a close. Reports out of Italy indicate another European Union member nation is beginning to implode, and a banking “bail-in,” or “debt conversion” are starting in earnest. Is another Bitcoin “bull-run” in the offing?

https://cointelegraph.com/news/bitcoin-bull-run-alert-italy-to-begin-banking-bail-in

[DooMAD]

A similar article has been published on The Merkle, as some people have voiced concerns over cointelegraph as of late:

Trouble is brewing in the financial ecosystem in every part of the world, and chinks in the armor are becoming more apparent every day. One of the countries often overlooked during the turmoil in Asia and the crashing oil prices is Italy, even though this country’s banking crisis is spelling disaster for the entire Eurasian region. Bitcoin users might want to rethink their strategy of converting to fiat currency unless they have no other choice that is.

Bitcoin users who have been keeping an eye on the financial news over the past few months may remember how the European Union created a new mandate regarding bail-ins. As a result of this mandate, bail-ins must be absorbed by bank shareholders and debt holders, before taxpayer money can be used to help cover the rest of the costs. Any deposit worth EUR 100,000 or more are at risk of not being covered by European deposit guarantees

http://themerkle.com/looming-italian-bank-run-makes-bitcoin-more-viable/


Supposedly savings are protected up to €100,000, or £75,000 here in the UK, but I can't help but think if all the banks decided to fall over at the same time, they couldn't print that much money out of thin air without doing some serious, irreparable damage to the economy.  And they would be printing it out of thin air, because it's not like there's some vault full of spare cash laying around.  Colour me dubious.

[richardsNY]

Supposedly savings are protected up to €100,000, or £75,000 here in the UK, but I can't help but think if all the banks decided to fall over at the same time, they couldn't print that much money out of thin air without doing some serious, irreparable damage to the economy.  And they would be printing it out of thin air, because it's not like there's some vault full of spare cash laying around.  Colour me dubious.

People really concerned about this go in depth about all the possible outcomes in cases such a thing really happens. But that isn't really the case for the average joe. They hold tight to the policy of their money being protected, and that gives them enough confidence to let go of any worries. For them it's like this - Do I get my money back? Yes? Then it's all fine. They look at the numbers, and not worry from where this money is coming, and what impact it has on the economy.

[yayayo]

Bitcoin Bull Run Alert: Italy to Begin Banking Bail-In

Bitcoin has proven a few things true over its relatively short existence in human history. One, it has proven that it is not going anywhere, regardless of how many times the mainstream media pushes it into the cornfields. Two, the inherent value of Bitcoin’s currency and underlying technology are so strong and undeniable that the world’s largest nations, banks, and corporations are building their future business models around it. Thirdly, Bitcoin is the world’s newest financial “safe haven,” as market turmoil means great gains can be made in the world of digital currency like Bitcoin.
This truth may come into play once again, as the year comes to a close. Reports out of Italy indicate another European Union member nation is beginning to implode, and a banking “bail-in,” or “debt conversion” are starting in earnest. Is another Bitcoin “bull-run” in the offing?

https://cointelegraph.com/news/bitcoin-bull-run-alert-italy-to-begin-banking-bail-in

I can agree to the first two propositions, but remain partly skeptical regarding the third one - at least regarding a direct causal short term relationship between "market turmoil" and gains in Bitcoin fiat valuation. This theory was first established after an increase in Bitcoin price occurred at the same time as the Cypriot expropriation event. However all data we have are pure correlations, which do not allow to draw the conclusion that it was in fact immediate safe haven demand that led to Bitcoin's price increase. Personally I doubt it, because:

1) Compared to traditional safe havens like precious metals, Bitcoin is not yet well established;

2) buying the currency involves some effort and technological knowledge to store it safely and hence is time-consuming.

However I do agree that Bitcoin works as a safe haven and inflation hedge in the medium and long term.

Overall I doubt that an Italian default will lead to significant price increases via capital flight. If there will be a short term effect, it will be primarily speculation-based.

ya.ya.yo!

[Goms]

People really concerned about this go in depth about all the possible outcomes in cases such a thing really happens. But that isn't really the case for the average joe. They hold tight to the policy of their money being protected, and that gives them enough confidence to let go of any worries. For them it's like this - Do I get my money back? Yes? Then it's all fine. They look at the numbers, and not worry from where this money is coming, and what impact it has on the economy.

And that is the main reason fiat currencies keep growing weaker, central banks won't stop printing money out of thin air, plunging countries into debt.