Bitcoin: the Black Swan on the Euro Market

The introduction of the Euro was supported by a System of Central Banks that enjoyed a high level of independency. The ECB was, in fact, designed to sustain the stability of the Euro without interferences of policy makers. The idea was that an independent institution would better succeed in building trust in this new currency for the long run.

Unfortunately, the decisions of Eurozone to tax savings accounts on Cyprus soil, was a political decision dictated by politicians, not a technical one. Maybe this choice was made to decrease the value of the Eurocurrency to more acceptable levels for domestic export; maybe it was just an attempt to tax Russian capital for the Euro-crisis. It doesn’t matter. It was a political decision and another broken promise that dropped the confidence of Euro citizens regarding the Eurobank System to the bottom level.

 But there is no such thing as a free lunch in any political decision governments may take. When back in 1992 the Italian government did put a tax on bank deposits, Italian citizens did not have many other possibilities then to keep their money under the mattress for the great joy of thieves. At that time there was no alternative. How different the situation is right now.

The hit searches of Google of last week show that the awareness of Europeans toward the so called alternatives crypto currencies is increasing. Bitcoins are becoming a serious possibility for protecting precious savings, instead of putting them under the mattress. Spanish people and other members of Euro community are now investing in this new storage of value that ensures so much privacy that nobody can tell how wealthy or not you are.

It really seems that Bitcoins may become the Black Swan of the Euro Market and governments did not expect that at all…