Euro crisis and the case for Bitcoin

The European common currency, the Euro, is in trouble. As usual.

The past week the European Central Bank (ECB) gave a bleak forecast. The BBC reports…

The European Central Bank (ECB) has cut its inflation and growth forecasts for 2015 and the next two years.
It expects inflation in the eurozone to remain “very low” for some years as threats to economic growth increase.
ECB president Mario Draghi said Europe’s economic recovery would continue, “albeit at a somewhat weaker pace than expected”.
The euro fell sharply as Mr Draghi also hinted that the bank could expand its stimulus programme if necessary.
He was speaking after the ECB kept its main interest rate on hold at 0.05%.
The ECB is now forecasting economic growth in the eurozone of 1.4% in 2015, down from 1.5%, and 1.7% in 2016, compared with its previous projection of 1.9%.
However, Mr Draghi said that risks to the outlook for economic growth and inflation had worsened since mid-August, when the latest projections were calculated.

The Euro was doomed from the beginning–and is only kept alive by political prestige and with taxpayers money. But that can only go on for so long.

This ought to be a golden opportunity for Bitcoin.

From Greece and Cyprus we have learned that banks might close or limit withdrawals–or simply take peoples money. When the next crisis hits the Euro (we don’t know when or where, but it will happen over and over again) people simply cannot trust the banking system.

  • Bitcoin provides a firewall between banks, the government and peoples money.
  • Bitcoin provides a free, swift and simple method for payments even when banks are closed.
  • Bitcoin stands free from political manipulation, bureaucratic intervention and national economic meltdowns.

Everyone ought to have at least a few bitcoins. Before you know it, this might be the only workable way to send and receive funds. Seriously.

/ HAX

On the Euro: BBC | The Guardian | The Telegraph | NYT | Bloomberg

A good introduction to Blockchain and Bitcoin, from the BBC (radio) »

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