Author [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] Topic: A Better Solution for Greece - Crypto Drachma  (Read 935 times)

0 Members and 1 Guest are viewing this topic.

Offline starspirit

  • Hero Member
  • *****
  • Posts: 948
  • Financial markets pro over 20 years
    • View Profile
  • BTS: starspirit
A Better Solution for Greece - Crypto Drachma
« on: February 06, 2015, 12:13:33 AM »

Greece is struggling to convince its creditors that the un-payable level of debt should be recognised as such to give the economy room to breathe and grow. Unfortunately the European elites know that Greece's negotiating power is constrained by the knowledge that failure to meet the demands of the Troika would ultimately force a Greek exit from the euro, which is not really considered a palatable option even by most Greeks, given this would involve a return to the Drachma, which has a history of corruption and hyper-inflation. The people of Greece have a choice between continued bowing to the European community for a generation or more, or a return to a poor and corruptible currency.

However, crypto-currency introduces a new option - a currency that is transparent and non-corruptible. If the Drachma could potentially be re-introduced in crypto-currency form, the people of Greece could have a currency they have faith in, without the risk of high inflation. And further, if it had the property that the public had ownership of the currency system through a voting system - whereby they could for example, vote on or veto any changes to the source code that underpins the currency - the people of Greece could finally have faith in true ownership of their own currency. If such a system were actually viable today, and discussed openly among Greeks, it may give them another solid option to deal with the crisis, or at a minimum, real negotiating power with its creditors should it prefer to stay on the Euro.

How could the current situation change if the crypto-currency community designed a realistic approach that could be presented to Yanis Varoufakis, the Greek financial minister, and the Greek people? How convincing might this be to the world if it were forked and set up, ready-to-use at a moment's notice, giving it real present tangibility? Could we create the crypto-Drachma today if given the go-ahead?

Personally I think it would need to meet the following criteria, though others may think of more:

1) there would have to be strong confidence that the currency would not be excessively volatile

There should be no attempt by the central bank to peg the new currency, as this could be very naive and costly - it should be allowed to find its own equilibrium exchange rate against other currencies.  But then volatility will be a clear concern. For a start, volatility concerns discount global cryptos like bitcoin that are subject to the whims of a global speculative marketplace. At least for now, this needs to be a currency owned by Greece. If the currency were officially accepted for all wages, goods, services, debt payments and taxes in the Greek economy, its use in all transactions, combined with a known and transparent supply, ought to provide enough stability, at least as much if not better than most fiat currency today. Regardless, initial volatility for a period may be unavoidable as the currency settles to a natural level.

2) it would need to be as easy to use as Euro or any other currency today

At least in the medium term, it may be necessary to facilitate paper cash or credit transactions for most people. Perhaps this could be achieved through an independent body exchanging freely 1:1 between crypto-Drachma and cash-Drachma notes (the latter backed by the crypto-Drachma), providing 100% reserves and full public audit ability. This at least would provide options for those not comfortable with digital wallets.

3) the voting system would need to be fair and incorruptible

Though PoS voting systems usually weigh votes by stake, the preference of the people may be for one citizen one vote. Decentralized voting systems would need to accommodate this and allow for proper identification processes.

These are just some seed ideas, all of which are open to debate. So is this potentially a feasible option for Greece?

Offline GaltReport

Re: A Better Solution for Greece - Crypto Drachma
« Reply #1 on: February 06, 2015, 12:26:55 AM »
I think they will look for help from Russia,China & Brics "Bank".


Offline liondani

  https://bitshares.OPENLEDGER.info/?r=GREECE  | You are in Control | BUY | SELL | SHORT | SWAP | LOAN | TRADE |  

Offline mf-tzo

  • Hero Member
  • *****
  • Posts: 1665
    • View Profile
Re: A Better Solution for Greece - Crypto Drachma
« Reply #4 on: February 06, 2015, 07:28:41 PM »
The only thing that Greek people need right now is Bitshares to be known to the Greek people so they can exchange all their euro deposits to biteuro and protect themselves from a Grexit. Unfortunately as far as I know we are only a couple of Greeks involved with bitshares and we are very bullish in BTS to exchange them for biteuro now. There is no biteur demand and liquidity and this creates uncertainty about holding biteur. Whenever I talked to Greek bitcoiners about bitshares in bitcointalk, the response was "we only believe in bitcoin and nothing else".

There is a huge opportunity now to let Greek people know about their alternatives by holding biteur. Increased demand for biteur will send bitshares to the moon. There are a lot of wealthy people concerned now about the future of their euro deposits.

I don't think that there will be a Grexit now..But sooner or later it will happen and I estimate this to happen during the summer period. Marketing people who know well how to sell bitassets and BTS should take action now! I am doing my best to let my fellow citizens about alternatives but it is not easy to sell a bitasset with no liquidity and no one wants to keep bitusd and having euro/usd fx exposure..

Offline liondani

Re: A Better Solution for Greece - Crypto Drachma
« Reply #5 on: February 06, 2015, 08:58:14 PM »
the all situation will pressure euro price further...  so bitGOLD is the answer and not bitEURO for Greece  ;)

Sent from my ALCATEL ONE TOUCH 997D

  https://bitshares.OPENLEDGER.info/?r=GREECE  | You are in Control | BUY | SELL | SHORT | SWAP | LOAN | TRADE |  

Offline mf-tzo

  • Hero Member
  • *****
  • Posts: 1665
    • View Profile
Re: A Better Solution for Greece - Crypto Drachma
« Reply #6 on: February 07, 2015, 09:10:59 AM »
the all situation will pressure euro price further...  so bitGOLD is the answer and not bitEURO for Greece  ;)

Sent from my ALCATEL ONE TOUCH 997D

I disagree..ECB QE and Grexit is already priced in. USD strength has negatively affected US exports. Eur will soon strengthen against usd. When all the banks and economist expect a eur-usd parity, this is when things reverse and go back to normal...Usually what happens is the exactly opposite of what GS says. Greeks will need to have some euros to spend and not gold..

Offline MrJeans

  • Hero Member
  • *****
  • Posts: 597
    • View Profile
  • BTS: mrjeans
Re: A Better Solution for Greece - Crypto Drachma
« Reply #7 on: February 07, 2015, 12:45:30 PM »
I dont think that launching the old currency as a cryptocurrency will do anything to help.
Conversion to bitGold would be a cool solution however it would be more complicated than converting to bitEuro.
It would be great publicity if people in Greece start converting their Euro to bitEuro.

Offline BunkerChain Labs

Re: A Better Solution for Greece - Crypto Drachma
« Reply #8 on: February 07, 2015, 01:47:04 PM »
I dont think that launching the old currency as a cryptocurrency will do anything to help.
Conversion to bitGold would be a cool solution however it would be more complicated than converting to bitEuro.
It would be great publicity if people in Greece start converting their Euro to bitEuro.

You're right... a country adopting a crypto standard would be a tipping point event for the entire crypto industry.
+-+-+-+-+-+-+-+-+-+-+
www.Peerplays.com | World's First Decentralized Tournament Platform Built Entirely on the Blockchain!
+-+-+-+-+-+-+-+-+-+-+

Offline mf-tzo

  • Hero Member
  • *****
  • Posts: 1665
    • View Profile
Re: A Better Solution for Greece - Crypto Drachma
« Reply #9 on: February 07, 2015, 02:53:43 PM »
I believe that if BTS was in the +$200 mil market cap area many Greeks would convert their Euro to biteuro now without much hesitation. I know I would definitely have done it. But at BTS market cap $25 mil and keep falling I don't know if it is more risky to keep the euros in our bank account with the hope not to return in drachma or place them in a such an illiquid market when if a couple of whales decide to dump you end up with nothing...

It is very unfortunate that BTS took so much time to lunch and is still following bitcoin's price movements. Maybe in a couple of years this will not be the case but until then many countries will be f...ed already so it may be pointless anyway. The world needs BTS and bitassets now and the rest of the world doesn't even know it yet..

Offline Empirical1.2

  • Hero Member
  • *****
  • Posts: 1366
    • View Profile
Re: A Better Solution for Greece - Crypto Drachma
« Reply #10 on: February 07, 2015, 03:11:55 PM »
I believe that if BTS was in the +$200 mil market cap area many Greeks would convert their Euro to biteuro now without much hesitation. I know I would definitely have done it. But at BTS market cap $25 mil and keep falling I don't know if it is more risky to keep the euros in our bank account with the hope not to return in drachma or place them in a such an illiquid market when if a couple of whales decide to dump you end up with nothing...

It is very unfortunate that BTS took so much time to lunch and is still following bitcoin's price movements. Maybe in a couple of years this will not be the case but until then many countries will be f...ed already so it may be pointless anyway. The world needs BTS and bitassets now and the rest of the world doesn't even know it yet..

Yeah I'm more excited about BTC over this whole Greece situation, which in turn will hopefully lift BTS too.

Unfortunately Vote, Dilution and merger really cost us a lot of value, time, network effect & loads of cash. So we're not in a position to benefit directly from the Greece situation yet imo.
If you want to take the island burn the boats

Offline starspirit

  • Hero Member
  • *****
  • Posts: 948
  • Financial markets pro over 20 years
    • View Profile
  • BTS: starspirit
Re: A Better Solution for Greece - Crypto Drachma
« Reply #11 on: February 07, 2015, 08:36:14 PM »
I believe that if BTS was in the +$200 mil market cap area many Greeks would convert their Euro to biteuro now without much hesitation. I know I would definitely have done it. But at BTS market cap $25 mil and keep falling I don't know if it is more risky to keep the euros in our bank account with the hope not to return in drachma or place them in a such an illiquid market when if a couple of whales decide to dump you end up with nothing...
This quote catches my attention...people will judge the security behind bitAssets, and their willingness to use them, by their confidence in BTS as its collateral. The strength that we perceive in the tight collateral rules (e.g. 3x reserving etc) is only a secondary consideration for many people once they get over this hurdle. It's a bit of a catch-22 though, if we expect bitAsset adoption to spur confidence in BTS. Solution?

Offline mf-tzo

  • Hero Member
  • *****
  • Posts: 1665
    • View Profile
Re: A Better Solution for Greece - Crypto Drachma
« Reply #12 on: February 07, 2015, 08:51:14 PM »
The only solution is to stop selling BTS so cheaply..Pump the hell out of it, let's go back to +$5mil trading daily volume constantly, get a market cap of +$100 mil and then and only then bitasset adoption will prevail. If we were in a situation like this I would exchange all my euro deposits to bit assets straight away to protect my self from a Grexit and many others would do the same.  We had a pump for 1 week and that was it...I never thought I would say this but currently ripple inspires more confidence than BTS...That is just sad... 

Offline fuzzy

Re: A Better Solution for Greece - Crypto Drachma
« Reply #13 on: February 07, 2015, 09:14:09 PM »
I think they will look for help from Russia,China & Brics "Bank".

Galt just said so much with one sentence...
BROWNIE==DKP; BitShares is our Community! 
ShareBits Welcome to  the Sharing Economy w/ BeyondBitcoin.org Partners--ShareBits.io & OpenLedger.info
TIP FORMAT: #sharebits "ForumHandleInQuotes" Quanity Token_Name

Offline fuzzy

Re: A Better Solution for Greece - Crypto Drachma
« Reply #14 on: February 07, 2015, 09:15:40 PM »
The only solution is to stop selling BTS so cheaply..Pump the hell out of it, let's go back to +$5mil trading daily volume constantly, get a market cap of +$100 mil and then and only then bitasset adoption will prevail. If we were in a situation like this I would exchange all my euro deposits to bit assets straight away to protect my self from a Grexit and many others would do the same.  We had a pump for 1 week and that was it...I never thought I would say this but currently ripple inspires more confidence than BTS...That is just sad...

That isnt sad really. They created a group of insiders and an incentive for all current insiders to join them...
BROWNIE==DKP; BitShares is our Community! 
ShareBits Welcome to  the Sharing Economy w/ BeyondBitcoin.org Partners--ShareBits.io & OpenLedger.info
TIP FORMAT: #sharebits "ForumHandleInQuotes" Quanity Token_Name

 

Google+