In 2012, the Bank of Cyprus non-prudently purchased Greek government bonds. When the Greek government bond management defaulted, the Cyprus banking system suffered heavy losses, exceeding 30% of the GDP of the year, and the Serbian domestic debt crisis occurred. In response to the crisis, the Serbian government issued a solution that was opposed by the people and was terrible: a levy of 6.75% and 9.9% of the deposits for 100,000 euros and more than 100,000 euros, respectively, to raise funds, after the veto in Congress Finally, the decision was made to sacrifice the benefits of uninsured depositors to obtain a bailout, and the deposits above 100,000 euros were frozen to solve the debt problem. These misconducts have caused great panic among the general public and the middle class, as well as strong doubts about the safety of banks. Many domestic and foreign depositors are eager to take out their deposits, and even angry locals are driving bulldozers to withdraw funds. This caused a large amount of capital flight and increased the crisis in Cyprus.
Some people in the country found that bitcoin, which is independent of sovereign currency and whose price is in a rising cycle, may be able to cope with this crisis, so some funds poured into the narrow bitcoin market in an attempt to hedge themselves and in the international media. Advocating, people rush to buy bitcoin.
The price rose from around $100 to $1,100, and then with the pressure of the Chinese central bank's policy, it quietly turned off and entered the bear market that was "long" for two years.
"The Times 03/Jan/2009 Chancellor on brink of second bailout forbanks" written by Nakamoto Satoshi under the creation of the world is particularly vocal. The masses do not have to pay for failed national decisions. Which currency and monetary policy should be used? The foot voted.
In some developed countries, critique Bitcoin as a currency issue without collateral seems to be politically correct, without “authority”, without “endorsement”, and without “anchor”. But in the tens of thousands of years of human civilization, most of the time Human beings are not based on government credit, the credit currency endorsed by state power, but the metal currency of gold, silver and copper that are incomparably "barbaric" and "backward". Further down, the author of the metal currency endorsement, and what anchors, they have practical use value (except for the use of precious metals caused by the electrical revolution in the past 150 years, the ancient civilization only for precious metals) The need to store value). The money demand for metal money comes from the consensus of mankind.
“Gold and silver are not currencies, but the currency is naturally gold and silver.” – Karl Heinrich Marx Karl Heinrich Marx
The basic characteristics of money: the existence of value scales, means of circulation, value storage, and means of payment. As long as an object has all of the above characteristics, it can become a currency, without the need for authorization without collateral, and the deviation of most people's cognition is actually deceived by the lies that the Keynesian government has made for currency overshoot.
To be continued.
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