Greece’s Varoufakis: Bitcoin Can Be Used in Eurozone ‘As Weapon Against Deflation’
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In some discussions about Greece exiting the euro, it has been suggested that Greece should swap the euro for bitcoin. At first glance, bitcoin may appear to be the cure.
But if the euro is the problem, switching to Bitcoin would be like trying to cure a headache with a bullet to the brain.
The main problem with the euro is that Greece cannot print more of it; only the European Central Bank can. But at least someone can. In theory, Greece could persuade the European Central Bank to print more euros for them.
On the other hand, if Greece were to switch to bitcoin, it would have no ability to control how much of their currency they could issue, and no one could be persuaded to issue more bitcoins not the European Central Bank, not the U.
Federal Reserve, not the U. A defining characteristic of bitcoin is that its supply is fixed and capped. There are 13, bitcoins todaythere will be 20, bitcoins on Yanis varoufakis bitcoin stock price 1,and there will never be more than 21, bitcoins. There are about 10 million people who own bitcoins.
If bitcoin is successful, we can expect 1 or 2 billion people to own bitcoins sometime in the next 20 years. The only way 1 or 2 billion people can have 21 million coins is by the price of bitcoin increasing significantly. But he goes on to yanis varoufakis bitcoin stock price that bitcoin is a flawed currency because it is deflationary. This misses the point. Bitcoin is not a currency for a government; it is a global currency for the people.
People will generally prefer a currency that goes yanis varoufakis bitcoin stock price in value over time which is called a deflationary currency, like bitcoin over one that loses value over time like all country currencies, which are called inflationary. It is a bad idea for Greece or any other country to renounce their currency and adopt bitcoin.
It is akin to adopting gold as a national currency and giving up monetary policy. Monetary policy, used responsibly, has been a step forward for public finances and prosperity. Monetary policy, however, has also been abused by governments that choose to print too much currency. This has created inflation and devastated the finances of the poorest people in these countries. These people have had no choice but to hold on to their national currency as it loses value, in many cases losing everything.
Bitcoin gives people yanis varoufakis bitcoin stock price an alternative. Anyone with a smartphone can hold bitcoins as a refuge from a currency that is losing value. This sends a message to their governments: Bitcoin is poised to become not the currency of any particular country but the global, digital currency of the Internet, by the people yanis varoufakis bitcoin stock price for the people.