Bitcoin in Switzerland (2): A battle on many fronts

Bitcoin, in Switzerland, part 2: A battle on many fronts. A guest post by Pascal Hügli.

Pascal Hügli
On 29. September 2019BTC$8.319,94 , and 0.61%part Facebook Twitter LinkedIn xing mail

The Swiss crypto-Nation: a contradiction? In a first part, it was exactly this question. But, regardless of the two-edged sword, it is ground in Switzerland as clearly as in any other country – to a higher-level macro-level a new type of tug-of-war has been initiated with the advent of the decentralized Blockchain technology. The world of Bitcoins – a (still) non-uniformly or finally-definable meta-institution – occurs, as such, is currently in competition with other us today is a much more common institutional structures: countries, currencies or companies.

Bitcoin, the digital Gold

Bitcoin mimics in a technical way, a tangible money and is therefore referred to by many as digital Gold. As a digital counterpart to the real yellow precious metal in the future competition. So-called gold bugs argue that Gold is historically tested and on a 5,000-year-old history as a store of value and inflation hedge back would look.

The blessings of the precious metal, Anke, not least, of its chemical property, which makes it almost indestructible. Many Bitcoin supporters are fond of this line of reasoning to add, however, that The longer the Bitcoin stock will have, the more the crypto is likely to grow into the Asset in the same functions. As evidence of the Lindy would be apply-effect and the concept of anti-fragility.

In perhaps more crucial respects, seems to be Bitcoin to be the Gold superior. In fact, the Portability of Bitcoins is unparalleled. Bitcoin units worth several million dollars can easily from one continent to another. The Transport of Gold is in this respect far more inconvenient and more costly – the geographical concentration of the stocks is a necessary consequence.

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Also critical: Bitcoin units are easier to check and verify. Anyone who operates a full – fledged network node – Full Node is called, it can check the entire transaction history of every Bitcoin is in perfect condition. The Notice of counterfeit gold of such, which are filled with tungsten ingots, for example, is a complex and costly process.

As the absolutely scarce commodity, Bitcoin has the best conditions for a store of value. As such, it is not only Gold and silver competition, but could also tarisieren the infamous "concrete gold" a demon. From a societal point of view, this is likely to be welcome. The less financial resources need to be parked because of the relevant Alternatives in real estate and land"," the less under a permanent price appreciation pressure this. What is likely to prepare real estate speculators and home-owners no joy, is all the more pleasing for tenants and home ownership aspirants.

Gives Bitcoin the Swiss franc once the air?

One popular investment is the Swiss franc. Among the national currencies, he is the Shooting Star and is regarded as a safe haven par excellence. Escape has always been to try investors and savers of political crisis and economic miseries by finding refuge as a capital of the refugees in the Swiss franc. The resulting appreciation pressure has prompted the Swiss national Bank (SNB), the country's currency through monetary policy interventions to artificially weaken, in order to support the Swiss export industry. About negative Deposit rates, the Central Bank also tries to make the Holding of Swiss francs unattractive.

The upgrading problems started in Switzerland, is a constant debate. The a consider a hard currency as desirable to keep the monetary policy interventions for devastating. Others feel exploited and see the Swiss population Swiss francs as a safe haven currency, the carrying costs for an international money aristocracy. This debate could defuse the Bitcoin theoretically, something he could indirectly lead to a normalization of the interest rate situation. The more people use Bitcoin instead of Swiss franc as a safe-haven currency buy, the lower the appreciation pressure and the related need for negative Deposit rates.

of Course should flow with such a development of less capital in Switzerland, which is why Overheating and distortions in the capital and real estate markets would be subdued. Less capital means less available liquidity and investments, which should, in turn, "at the margin", i.e., in the limit, the effect of reducing the wealth effect. Due to the number of opposing dynamics can be such a potential scenario a finally, a clear judgement can be made.

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about The author: Pascal Hügli is a Journalist with the financial media AG in Zurich. For years, he has worked intensively with the topic of Bitcoin, Blockchain and crypto, and also occurs as a Moderator and speaker. Many of his basic thoughts on the subject are to be found in the recently released crypto-book "Ignore at your own risk – the new decentralized world of Bitcoin and the Blockchain".

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