While European politicos negotiate in Brussels, deciding the fate of other people's money in Cyprus, the free market has already moved in to help Cypriots get access to their money via other means...
Banks have been closed for the last week in Cyprus and if they do re-open on Tuesday, it has now been announced that daily withdrawal limits at ATMs will be 100 euros per day.
As the Cypriot Drama unfolds before our very eyes, I began pondering what tangible solutions there are to bank holidays and bank runs. What could I do to help in Cyprus and all other countries (like Spain, Greece and Italy) for which, as we have predicted at TDV, bank closures are coming? The answer wasn't hard to come up with. If these people had simply bought bitcoins with their savings, not only would they currently have 100% access to their funds, but also they would have enjoyed a parabolic move to the upside over past months. -...
AN ENTREPRENEUR has announced he is keen to introduce in Cyprus the world's first ATM for virtual currency, bitcoin, which is not regulated by a central bank but has instead been growing via its online peer-to-peer community.
Jeff Berwick, founder of StockHouse.com and CEO of TDV Media said on his blog on dollarvigilante.com that he plans to set up the world's first Bitcoin ATM in Cyprus to enable people to deposit flat currency into it and get bitcoins in their account, as well as put bitcoins in their account and get flat currency back.
Bitcoin, which was designed and implemented by a mysterious programmer known by the pseudonym of "Satoshi Nakatomo," is based on a peer-to-peer network similar to the BitTorrent protocol for sharing files over the internet, the European Central Bank (ECB)has said in an October 2012 report on virtual currency schemes.
It can be used as currency for a number of transactions, from internet services and online services to buying clothes, electronic goods, while a small number of restaurants, hotels and retail stores across the world do accept bitcoins.
With restrictions likely in place when the banks do reopen, Berwick said he "began pondering what tangible solutions there (were) to bank holidays and bank runs."
"If these people had simply bought bitcoins with their savings, not only would they currently have 100 per cent access to their funds, but also they would have enjoyed a parabolic move to the upside over past months," Berwick said.
The currency is not pegged, with supply and demand determining the exchange rate. People need to download a free and open-source software to start using bitcoins that can be purchased using a currency, and are then stored in a digital wallet on users' computers or via online services. Transactions are not restricted by a Central Bank, are faster, and cheaper or free. Although users are drawn to the currency for transaction privacy and anonymity, the system has been criticised for being vulnerable to cyberattacks or for being attractive as an alternative currency to fund illegal activities.
The ECB said in its report that it considered bitcoin "as a high-risk system for its users from a financial perspective" citing a number of issues that "raise serious concerns regarding the legal status and security of the system, as well as the finality and irrevocability of the transactions, in a system which is not subject to any public oversight".
On the other hand, Berwick said that individuals have suffered "through the confiscation and devaluation of their savings through techniques like taxes, levies and inflation" by the ECB, the International Monetary Fund, and the German Federal Government.
"I am convinced bitcoin will be the currency of the future... and all the attacks on it by governments and central banks shows they know it," Berwick said. finance yahoo, how to finance your money, finance 101, finance 101 wharton, finance 101 lecture, finance 1, personal finance 101, finance 240 sdsu, finance 201, finance 2014, finance 2, bitcoin finance 2014, finance 301, finance 5 program, finance 5, american economy animation, american economy collapse, american economy collapse 2014, when will american economy collapse, american economy documentary, american economy explained, american economy history, american economy may 2014, american economy shrinks, american economy today, how the american economy works, american economy 1950s, american economy 2014, global economy animation, global economic collapse, global economy documentary, global economy explained, global economy journal, global economy kagundu, global economy mean, global economy news, global economy outlook, global economy pdf, global economy ryan harvey, global economy reset, how does the global economy work, global economy zimmer, global economy 2014,