EUR negative interest incoming - BTC panic buys ahead?

[serenitys]

Are you referring to the crash of the us economy or elsewhere?

In any event, using US as an example, if our economy started its free fall nosedive, the value of the usd would drop rapidly. Those who jumped to "cash out" so to speak and trade for bitcoin, would obviously be getting less since the purchase power still applies in the exchange.

It's boggling sometimes to look at all these factors - the economic instability vs all the new innovations and all these people investing in bitcoin technologies and new breakthroughs in science and medicine - like we're all building and growing while almost oblivious it seems to the foundation crumbling beneath our feet.

Who survives an economic crash where the currency's value has imploded?

[Lauda]

Are you referring to the crash of the us economy or elsewhere?

In any event, using US as an example, if our economy started its free fall nosedive, the value of the usd would drop rapidly. Those who jumped to "cash out" so to speak and trade for bitcoin, would obviously be getting less since the purchase power still applies in the exchange.

It's boggling sometimes to look at all these factors - the economic instability vs all the new innovations and all these people investing in bitcoin technologies and new breakthroughs in science and medicine - like we're all building and growing while almost oblivious it seems to the foundation crumbling beneath our feet.

Who survives an economic crash where the currency's value has imploded?

Maybe once the USD crashes, Bitcoin and the likes of it will replace it? Imagine after a crash, the whole world relying on cryptocurrencies.

[serenitys]

Are you referring to the crash of the us economy or elsewhere?

In any event, using US as an example, if our economy started its free fall nosedive, the value of the usd would drop rapidly. Those who jumped to "cash out" so to speak and trade for bitcoin, would obviously be getting less since the purchase power still applies in the exchange.

It's boggling sometimes to look at all these factors - the economic instability vs all the new innovations and all these people investing in bitcoin technologies and new breakthroughs in science and medicine - like we're all building and growing while almost oblivious it seems to the foundation crumbling beneath our feet.

Who survives an economic crash where the currency's value has imploded?

Maybe once the USD crashes, Bitcoin and the likes of it will replace it? Imagine after a crash, the whole world relying on cryptocurrencies.

OMG I do already! I'm kinda rooting for it actually, if I was to be truly honest. I would love to see bitcoin/crypto become the world currency. It would be a game changer and topple all the wrong empires. Dismantling old school government is one of my fondest dreams.

To the future 

[hd060053]

it wont happen until 25.5  (eu elections).

After that, i am really interested what will happen. I think at least the € will drop significantly.



Anyway, normal people will act only when its already too late - like when there is a 100€ bank withdrawal restriction.

[DeathAndTaxes]

a) you have an IQ of 160+ but most people don't. Most people are too dumb to clean their ass properly. I thus believe it will make all the difference in the world when the nominal interest rate on savings accounts and such, becomes negative. Adjusted for inflation? Most people don't even know what that means. If people see the negative interest deductions on their account, no matter how small, the stampede will start. When Joe and Jane Doe see a -0.01 EUR interest payment in their account it will commence.

Nominal interest rates on checking accounts won't be negative.  People would simply take the money out of the bank.  Until you can enforce negative interest rates of cash (physical paper currency) that will remain an option.  Banks will simply absorb the impact by other means.  They could raise the fees on checking accounts by 1 euro per year as an example, or lower the interest charged on debt products to grow their balance sheet that way and eliminate or reduce the amount of funds they need to transfer to the ECB.

The only people who will see negative interest rates ARE SOPHISTICATED financial types (bond purchasers, pension funds, accountants for major corporations, etc) who already understand the concept of real returns.

[leopard2]

Maybe quite soon?

Tax to rise unless HMRC can raid accounts says PM: Cameron insists taxman must be given new powers to seize money

http://www.dailymail.co.uk/news/article-2624775/Tax-rise-unless-HMRC-raid-accounts-says-PM-David-Cameron-insists-taxman-given-new-powers-seize-money.html

Ohhhh. Does he own Bitcoins and is trying to pump them with this idea? 

[leopard2]

a) you have an IQ of 160+ but most people don't. Most people are too dumb to clean their ass properly. I thus believe it will make all the difference in the world when the nominal interest rate on savings accounts and such, becomes negative. Adjusted for inflation? Most people don't even know what that means. If people see the negative interest deductions on their account, no matter how small, the stampede will start. When Joe and Jane Doe see a -0.01 EUR interest payment in their account it will commence.

Nominal interest rates on checking accounts won't be negative.  People would simply take the money out of the bank.  Until you can enforce negative interest rates of cash (physical paper currency) that will remain an option.  Banks will simply absorb the impact by other means.  They could raise the fees on checking accounts by 1 euro per year as an example, or lower the interest charged on debt products to grow their balance sheet that way and eliminate or reduce the amount of funds they need to transfer to the ECB.

The only people who will see negative interest rates ARE SOPHISTICATED financial types (bond purchasers, pension funds, accountants for major corporations, etc) who already understand the concept of real returns.

Are you the same D&T who elaborated about money laundering implications awhile ago?  Yet don't realize that cash withdrawals are not practically possible due to regulations? In most countries on this planet amounts over 1000-5000 get you in hot water, with deposits being even worse. And deposits you need to do, because cash payments are also not accepted for most transactions.

So no, people cannot have most of their money in cash outside of bank accounts, unter their mattress or whatever.

True, they will absorb if for awhile but not forever, if primerate is -1% you will have a deduction on your checking account for sure.

[DeathAndTaxes]

True, they will absorb if for awhile but not forever, if primerate is -1% you will have a deduction on your checking account for sure.

Tell you what, how about we each put 1 BTC into escrow and if a major bank in the EU charges negative interest on a personal checking account you win.  If they don't by the end of 2014 I win and if you lose you can double or nothing for 2015 and 2016 by doubling the escrowed amount.  Sound good?

There are SO many ways banks can raise revenue that they aren't going to do something as stupid as charge negative interest on depositors.   I mean the CFO would have to be a brain dead chimp to do that.  The negative PR alone would cost them 10x whatever token revenue that raised.  In the US banks pay about 0.2% insurance premium on deposits to FDIC.  There is nothing that prevents them from billing consumers 0.2% of the amount of their deposits but it would be an equally horrible business decision to do so.

[mikis]

I see some confusion going on here, the negative interest rate would be on deposits at the ECB made by private banks in order to stimulate other kinds of investments, private deposits will yield at whatever interest rate your bank applies. Close to 0 anyway in most cases.

The euro is on a negative trend over the dollar since a few days, so buying T Bills would have been a good idea and probably still is. I think that they'll do "whatever it takes" to push it close to 1.20 or so. Otherwise it will blow for the joy of bitcoiners all over the world 

Half Europe is deflating, we will know in early june if the ECB is doing something against it, there's also some talking about a QE or some other sort of assets buying. European elections results may be crucial.

Definitely not the best time to hold euros IMHO