Slashdot Mirror
Greek Financial Crisis Is an Opportunity For Bitcoin
An anonymous reader writes: Greece's economy has been in trouble for several years, now, and a major vote next weekend will shake it up even further. The country can't pay its debts, and the upcoming referendum will decide whether they face increased austerity measures or start the process of exiting the Euro. One side effect of the crisis is that alternative currencies like Bitcoin suddenly look much more attractive as the "normal" currencies become unstable. "Tony Gallippi, the co-founder of bitcoin payment processor Bitpay, tweeted on Sunday night that he expected the price of bitcoin to rise to between $610 and $1,250 if Greece exits the Euro. The currency is currently worth $250. Part of the reason why the crisis is so tempting for proponents of the cryptocurrency is the echoes of a previous crisis in the Eurozone: the banking collapse in Cyprus in 2013, which saw that nation also impose capital controls to prevent massive outflows of currency from the panicking country. That collapse came at the same time as the first major boom in the price of bitcoin, which began the year at less than $20 and peaked at ten times that by early April – before it all came crashing down."
The funniest thing is that with the capital controls in place, you just can't send money abroad, so no bitcoin buying frenzy, sorry.
"Thing is, the one who stole money is Greek government."
Yes. With the enthusiastic help of French and German governments and Goldman Sachs.
It is not that it's some kind of a secret but, still, I find amusing that the obvious fact that current Greek situation was a well planned trap of central/northen Europe and economical lobbies against south Europe economies doesn't gather but a fraction of mindshare than the "Greeks must pay" and "Greeks lived above their means".
Just some examples:
* Greek economical situation was falsified by Goldman Sachs, so Greece apparently reached the required levels to enter de EU and Euro currency. German government knew it (and even now, Mario Draghi, GS ex-consultant is current head of the European Central Bank). Still, I don't see anybody asking Goldman Sachs for billionary fines and compensations.
* Greece can't (partially) default its debts, not at least within the monetary union, still Greece hasn't still seen a dime of Germany's war compensations (I'm not even going into it's legal weight, but the obvious fact is that this helped to develop Germany's economy and now Greece is in a position to be returned the favour). Double standard anyone?
* Greece spends a quite above average percentage of its GDP on defense (at about 2.5% -a percentage significant enough as to put an end to Greece's crisis on its own), mostly on weapons bougth to... Germany and France, mainly to protect European interests on the zone. Do you know what Germany and France are *not* saying? They are not saying "return me back our planes and tanks, which are well above the level you need for self-defense, and so part of your debt gets settled".
* Most of the money lent to Greece isn't going to support Greek economy so it can go stronger, produce more taxes and return the debt but it is going back to Germany and other northern European countries and to support the Greek *private* banking system (again an example on the 'privatization of benefits but nationalization of loses', some "liberals" are so keen of). Even IMF concludes that no more than 11% of lends ended up being used to support the country's operations.
All this has not to be understood as if the Greek people voluntarily decided going that path (rising defense expenses to 2.5% of GDP, allowing Goldman Sachs to falsify the accounts, giving public contracts to cronies, etc.). This all was the result of a corrupt government with aquitance of (mainly) German government and banks, which are the same that now tear their robes in anger.
No, it was not that the Greeks were expending abover their means, it is that Germany -with the help of Greece's corrupt politicians, was robbing Greeks above their means and now Germany tries to hide their tracks just by shouting up loud.