Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
Adopting BTC as national currency would be suicide for Greece. Their problem is not that the Euro inflation is too high, but it is too low. Bitcoin is deflationary in the long term, so their debts would explode, when BTC price rises.
That would be contrary to the aforementioned Gresham's Law. I'd indulge you to read it here: https://en.wikipedia.org/wiki/Gresham%27s_law
The undervalued currency would (in this case) be the EUR. That means the debt in EUR will be lowered as the BTC would go up and finally eliminated when BTC reaches a high rate. Such an experiment is -of course- non applicable on a country under a sovereign coalition, so we can only assume here (both me and you) what we *think* it will happen.
You could also be right and me just typing nonsense here.
Thanks for the link, quite interesting lecture. My conclusion is that we talked about two different things: Gresham's Law is driven by the public, while the official legal tender is issued by more or less state-controlled institutions. It may well be possible that the greece public will adapt BTC as an unofficial currency for everyday use.
Yanis Varoufakis has an opinion regarding Bitcoin though. The following article is more than 2 years old and I am sure it has already been posted here. But maybe someone finds it interesting:
http://yanisvaroufakis.eu/2013/04/22/bitcoin-and-the-dangerous-fantasy-of-apolitical-money/