Yearly Archives: 2013

2013: Year Of The Bitcoin

"Although bitcoin has attracted a lot of attention in the last few months, Babin-Tremblay pointed out that the currency actually started to gain popularity earlier this year as a result of the Cyprus banking crisis. In March the government of Cyprus announced a bail-in for banks, meaning that the financial institutions would have to impose losses on their shareholders, debt holders and even large depositors. After the bail-in was announced people ended up rushing to their bank accounts to withdraw funds. Many put the money into bitcoin, where governments could not touch it. 'Bitcoins were growing slowly until Cyprus. Cyprus was the catalyst for the big increase in the price,' he said." Continue reading →

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Korea decides not to recognize Bitcoin as real currency

"Korean financial authorities said Tuesday that they have decided not to recognize Bitcoin, or cyber currency, as a real legal currency. The conclusion came after a week of debate among officials of the Ministry of Strategy and Finance, the Bank of Korea, the Financial Services Commission and the Financial Supervisory Service. Officials said Bitcoin, which can be traded between individuals online without going through financial institutions such as banks, does not meet standard regulations governing the transactions of currencies via the Internet or commercial institutions. A Bank of Korea official said the currency has been facing high volatility as it does not have an 'intrinsic value.'" Continue reading →

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Talk of the Day — Bitcoin to be introduced in Taiwan

"Wayi International Digital Entertainment Co. announced Wednesday that its online shopping site Wmall will begin to accept Bitcoin payments next year. The OTC (over-the-counter) market-listed company, which focuses on the research, development and distribution of online games, will be the first Taiwanese company to accept the decentralized virtual currency as a payment tool. Wayi's decision will test the Central Bank of the Republic of China's (CBC's) attitude toward Bitcoin development in Taiwan and its ability to regulate the currency's circulation. CBC Governor Perng Fai-nan said recently that the central bank has been keeping close tabs on the development of Bitcoin." Continue reading →

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Keiser Report: Bitcoin Battle

"In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the bitcoin price plunge as Baidu ditches the crypto currency and China bans it for financial firms. Unnoticed at the same time, Germany declares bitcoin to be private money and Merrill Lynch claims it can replace money transfer systems like Western Union. In the second half, Max interviews Dr. Christos Vlachos, CFO of the University of Nicosia, which is now accepting bitcoin as payment and he explains how the volatility in the price won't matter to the university. They also discuss Dr. Vlachos' hope to turn Cyprus into a bitcoin hub." Continue reading →

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Croatian central bank establishes that Bitcoin is legal in Croatia

"Croatian national bank (CNB) gave its opinion that Bitcoin is legal, and the most notable mention was a piece on Bitcoin that got aired on 19:30 national television news on Monday. CNB took the very liberal stand that echoes European central bank document on virtual currency schemes from October 2012, noting that Bitcoin is not illegal in Croatia. They noted that it is not electronic money since it's not debt to the issuer (although it has some similarities with electronic money), and that it is not legal tender in Croatia but can be legally used." Continue reading →

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Bill Bonner: Is Bad News Good News for US Stocks?

"Everyone knows that even a little cutback in the Fed’s buyback program should mean falling stock and bond prices. A trillion dollars a year is a lot of money – in fact, it’s 7% of GDP. Imagine a corporation with annual revenue of $100 billion. Imagine that it buys back its own shares at the rate of $7 billion a year. Then try to imagine what would happen to the share price when the largest single buyer drops out. It doesn’t take a genius to figure it out. Even Fed economists can see it. That’s why they won’t taper. And everybody knows it. That’s why bad news is now good news. And good news is good news. Everything Is Good News!" Continue reading →

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Revolutionary France’s Road to Hyperinflation

"The current Federal Reserve strategy is apparently to wait for significant price inflation to show up in the consumer price index before tapering. Yet history tells us that you treat inflation like a sunburn. You don’t wait for your skin to turn red to take action. You protect yourself before leaving home. Once inflation really picks up steam, it becomes almost impossible to control as the politics and economics of the situation combine to make the urge to print irresistible. The hyperinflation of 1790s France illustrates inflationary monetary policy becoming unmanageable in an environment of economic stagnation and debt, and in the face of special interests who benefit from, and demand, easy money." Continue reading →

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