Aktiespararna, a news site of the Swedish Shareholders’ Association that offers investment advice, has posted an article presenting bitcoin as a future currency that can address the problems of security.
The article focuses on the importance of security on account of crises afflicting traditional currencies. The example offered is the 2013 financial collapse in Cyprus caused by the banking system’s liquidity and solvency problems.
As an investment, the article noted bitcoin carries a high risk. But it offers an interesting feature of a well-diversified portfolio.
The Cyprus Experience
To save the banks, the Cyprus government imposed a tax and a limit on how much money customers could withdraw from ATMs and transfer abroad. In response to this situation, many Cypriots discovered the benefits of bitcoin. The key benefit was that bitcoin is completely decentralized; there is no central unit that can control the system or affect the money supply.
Today’s money system, the article noted, is based on