Quote from: Inedible on July 04, 2013, 04:09:05 PM

Quote from: Kaiji on July 04, 2013, 02:59:25 PM

I never understood how the last bitcoin bubble was caused by the Cyprus crisis. Is it known fact or just an assumption? With the blocking of withdrawals in the banks in Cyprus how were they able to put money into bitcoin exchanges in the first place? Or were Cypriots more tech savvy than other countries and saving their wealth in bitcoins just an easy step?

I'm of the same way of thinking.

I can't see that Cypriots rushed to Bitcoin as their solution. Someone already feeling cornered isn't going to take on additional risk with a cryptocurrency that they've never heard of or likely don't understand.

Even if they were to come across this 'solution' I can't see them keeping money in it due to the massive fluctuations in value. They would sell their Bitcoins as soon as possible either in a different currency or in a country where they could open another bank account and deposit their Euro. Not sure how easy it is to open an account in the rest of the Eurozone but in the UK it requires a great proof of address and photo ID.

There was a chart that showed the increased activity for BTC in Cyprus after the crisis that does prove some activity. I am not sure where that link is. So there was some increase for sure. I am sure that is overblown. Isn't everything overblown here on the forums though? Wink