In April 2013, under intense pressure from the EU, Cyprus suddenly decided to ‘bail in’ its banks, whereby 37.5 percent of uninsured deposits were converted into equity and depositors were prevented from withdrawing their funds.
As a result, bitcoin usage surged in the region as it was used as an alternative store of wealth by many of those who were not able to access their funds held at local banks. During the one-month period following Cyprus’ ‘bail in’, the price of bitcoin soared from around $500 to over $600 per bitcoin as people recognised its value versus traditional, fiat currencies, which could now be taken away or restricted in times of emergency, a precedent set by the events in Cyprus.
However, the incident in Cyprus may not be the only instance where bitcoin manages to emerge as
Read more ... source: TheBitcoinNews
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