From Forbes: “….Bitcoins are a peer-to-peer currency named
after the file-sharing technology, Bittorrent. Rather than banks and
governments issuing Bitcoins, a network of Bitcoin holders’ computers does the
heavy lifting. Touted as untraceable,
Bitcoins are heaven on earth for libertarians and others who dream of a global
economy outside the control of governments. .
And since crisis erupted in Cyprus, the value of Bitcoins
have soared. And why not? The crisis in Cyprus led to a spike in fear about the
risk in government-run currencies. As the New York Times reports, the genesis
of that fear was Cyprus’s policy of accepting few-questions-asked cash and
charging companies an ultra-low 10% tax.
Cash flooded Cyprus from around Europe — a third came from
Russian oligarchs. And those deposits turned into loans. According to the
Times, a bank would give a a £20,000 loan and a £5,000 credit card to a
depositor with a monthly salary of £400. Much of this money went into real
estate that soared in price…
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