8th edition, 28 February 2014 – Pike & Hurricane

Visiting Transnistria: A Dormant Civil War Inside Europe

Rodrigo de Souza — Fri, 28 Feb 2014 14:48:53 +0000

Transnistria. Although it is independent, has its own currency, army, public institutions and even passports, much of the world has no idea it exists. It is a self-declared country, a breakaway state from Moldova that is not recognized by any other country in the world. According to the UN, Transnistria is an integral part of Moldova and is recognized by other countries as such. To understand how Transnistria came to be, we should go back in time to the period of the Soviet Union

From the end of the Second World War to the beginning of the 90’s, Moldova was part of the Soviet Empire. With the collapse of the Soviet Union in the early 90s, Moldova then became an independent country. Despite this, a great conflict remained in the new country as those at the east of the Dniestr river, the majority of whom were of Russian and Ukrainian descent, declared themselves independent from Moldova since they felt more allied to Russian interests. Because of this disagreement, there was a brief civil war in 1992. Thanks to the support of the 14th Russian Army, which was based inside Transnistria, the outcome of this war was that Transnistria would be allowed to maintain its independence from Moldova. Russia intervened because it considers the region in its backyard and believes it has the right to intervene at any time once its interests are in jeopardy. In this case it was the “protection” of civilians from Russian descent. However this is probably an excuse to keep its troops in countries that broke away from the Soviet Empire since the same situation happened in other post-Soviet “frozen conflicts” like South Ossetia and Abkhazia in Georgia and Nagorno-Karabakh in Azerbaijan. In the case of Moldova and Georgia, this is a clear attempt by Russia to prevent ex-Republics aligning with the West, especially the European Union in Moldova’s case and NATO for Georgia.

Since the end of the war and the creation of this peculiar “country”, there have been rumors about all kinds of shady business within this territory like human trafficking and commerce of organs, drugs and steroids. One of the most widely known stories (and possibly the only reason why some people have heard of Transnistria) is that of the famous arms dealer portrayed in the movie “Lord of War”, Viktor Bout, who got most of his heavy weaponry from the 14th Russian Army in Transnistria. It has been stated that with the sudden collapse of the Soviet Union, a lot of the control over its less sophisticated arsenal was lost or became very lax. Taking advantage of this situation, Bout allegedly used his influence as ex-Soviet Army officer to gain access to part of the Russian arsenal left in Transnistria.

It may seem weird that someone would like to visit a place like this, but since I am a student of International Relations and an avid traveler, a trip like that would be the perfect field experience to understand a micro example of a geopolitical dispute. To accomplish this task I had to go to Moldavia which is probably the easiest way to enter Transnistria, but it is also possible to go in through Ukraine. It was surprisingly simple as I merely took a van from Moldova’s capital, Chisinau which run every 30 minutes to Tiraspol, to the capital of Transnistria.

After 40 minutes on the van I started getting close to the “border”. Since Moldova doesn’t recognize this breakaway province, they also don’t recognize that there is a border between them, so the last authorities on the Moldovan side are not border guards but “normal policeman” who ensures border control.

After passing through Moldovan border control, I saw the Russian “peacekeepers” with their Kalashnikovs and tanks. They wear blue berets and helmets like UN peacekeepers, but without the UN emblem and their status is disputed since they are not part of any UN mission. They are not under UN mandate and according to most Western countries they are there in a violation of Moldavian sovereignty. On the other hand, Russia claims that its presence there is part of a 1992 cease-fire agreement between Moldova and Transnistria, stating that they are there to prevent a conflict between both sides. This is an illusion since in the event of conflict the barrels of the blue helmet’s guns would most likely only point to one direction.

After driving past the “peacekeepers” and their tanks, I arrived at the border control of Transnistria where everyone had to get out the van to have their documents checked. Outside everything is controlled by the serious eyes of the police but inside the immigration office is chaotic with people pushing in line to get their entry papers ready. Since no “real” country has diplomatic relations with Transnistria, the officials stamped a sheet of paper instead of my passport[1].

Shortly after, I reached the main bridge crossing the Dniestr River. In 1992, this was the bridge where Russian tanks crossing into the Moldovan side could be seen during the war. Today, however, this is yet another check point manned by Russian troops.

Once in the center of Tiraspol, I started to walk through the main avenue. On one side I could see the imposing statue of Lenin with his clenched fist and on the other side I could still see an old Soviet tank with the classic letters CCCP on the side, which is the Russian Cyrillic abbreviation for the USSR. Continuing down the avenue I saw a memorial to victims of the 1992 conflict as well as other nationalist symbols such as flags and communist red stars. Everything seemed almost deserted, without many people, stores, and less cars than you would expect for such a large avenue. I had to be careful when taking pictures, especially of Lenin’s statue. While I was trying to take a picture a soldier came out from the building behind it and made a clear gesture for me to stop. This attitude from the soldier is quite understandable since there are no other tourists around and they are not used to people photographing monuments. Anyone taking pictures may be thought of as Moldavian spy.

I tried to strike up some conversation with the locals on the street but most of them did not speak English. It was a little bit easier to have some interaction with the youngsters who were very curious to know more about me. The ones I could talk to always asked me what I was doing there since they are not used to seeing outsiders. I was also told that everyone in Transnitria held dual citizenship, usually from Russia, Ukraine or Moldova since otherwise they would be a stateless person, with a passport that is not recognized around the world. Furthermore, I learned that such an unrecognized county can only survive because it has full economic and military support from Russia, which was obvious by all the Russian products and brands I saw on stores around Tiraspol.

Leaving this self-declared country at the end of the day, I wondered how long this bizarre situation would last. Last November Moldova signed an association agreement with the EU which usually represents the first steps for a future full membership with the European Union. However, Transnistria has said it has no interest in the EU and prefers an association with Russia. This situation gives Russia a partial victory. Since it cannot stop Moldova from joining the EU, it can at least stop it from joining NATO which is usually a natural step. But since NATO would probably not accept a country that has no full control of its own territory, keeping Transnistria on Russia’s side would definitely deny Moldova from joining NATO any time soon and thus avoiding Russia’s old enemy of getting even closer to its Southwest border.

This same attitude of Russia seeking to enforce its military and economic power over ex-Soviet republics is what led to the civil unrest we are seeing in Ukraine in the last few months. Instead of following Moldova and signing the association agreement with EU, Ukraine prime minister preferred to keep its alignment with Russia in exchange for a 15 billion dollars package from Russia. The only problem is that the majority of the Ukrainian population wants to progress towards the West and EU and the Ukrainian government together with the Eastern part of the country prefers the Russian side. This tug of war between both sides reflects nothing more than a geopolitical dispute between Brussels and the Kremlin for the power over ex-Soviets republics. The unrest in Ukraine’s capital Kiev has been unravelling for almost three months. Barricades were formed by the protesters at Kiev’s main square and there is no end in sight (I will leave it to change at the last minute). We can only hope the same situation doesn’t happen in the “border” between Moldova and Transnistria because unlike Ukraine, there are more weapons available and the consequences can be dire.

1 South Ossetia and Abkhazia recognize Transnistria as an independent country.

This article was based on a previous version originally published by http://outofyourcomfortzone.net/ where it explains how to visit Transnistria.

By Rodrigo de Souza

Image credit: Rodrigo de Souza

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Ukraine: Revolution of Dignity

Charlotta Lahnalahti — Fri, 28 Feb 2014 14:42:00 +0000

Ukraine, and all of Europe, has been on edge for the last months as student protests which started in November of 2013 turned into violent conflicts in January of 2014. Having interviewed a Ukrainian student, Dima Kharchenko, who had been taken part in the revolution.

“I do not know where to start. It seems like so much has happened in the past couple of months. Firstly, I would like briefly touch on what preceded the revolution. The disagreements originate from 2010 when Yanukovych was elected as the president with previous vote falsifications, especially in the East, closer to the Russian border. After he was declared the president, Yanukovych launched a bunch of new policies, which were generally aimed at recreating the state where the majority of people served directly under the President and those beside him – including his so called “family”. Consequently, these policies led to the spread of deep corruption within the system and the worsening of human rights During the process of adapting the new policies, the citizens became unsatisfied with his rule, for reasons including his ignorance of public opinion.

However, Yanukovych tried to gather support by maintaining the Euro-integration process between Ukraine and the EU, which is an idea that appears to be popular in Ukraine. Throughout 2013, Yanukovych traded both with Russia and the EU, changing sides whenever one supported Ukraine more than the other. In the end, Putin persuaded Yanukovych to delay signing the Association Agreement (EU AA) with the EU on November 21st. This long feared decision led to peaceful student protests in Kiev, especially in the Independence Square, which is also known as the Maidan Nezalezhnosti. The protestors demanded that Yanukovych sign the deal with the EU despite Russia’s reluctancy. Since the protestors were advocating the signing of the EU AA deal, they renamed the place to “EuroMaidan”. When it was clear that the agreement would not be signed after all, people started to go home. The night before EuroMaidan was to be disbanded, the Ukrainian special riot police, Berkut, attacked the protesters and journalists, severely beating them near and around Maidan. This is said to be the turning point which transformed the countrywide peaceful protests against the current government, to violent clashes between the government forces and the opposition.

As an outsider, a fact that has not been widely discussed in the international media, is that Yanukovych is a previously convicted criminal who has been imprisoned twice. The decisions led by him to attack the protestors and later not allowing flexibility in negotiations thus show such methods are perceived as justified and routine for this ex-con. His war-crime-like actions further decreased his credibility and the legitimacy of his power in the eyes of the international community, and dug himself a deeper grave. Even though Ukraine is not a fully democratic country, due to corruption, and it holds close bonds with Russian and Belarussian regimes, such open violence against peaceful demonstrators is simply unacceptable by the society and cannot be justified by any means.

Briefly, people of Ukraine are fighting against the authorities which have continuously, for three years, oppressed the population through deliberately ineffective government and structural violence. Even though the Western media says people are solely fighting for further EU integration, it is a false assumption. EU integration seemed like an open door to a democratised Ukraine, which was closed by Yanukovych and sparked violence. People are struggling because they are fed up with the government and its ineffective actions.

The issue in Ukraine has been called many names, such as Eurorevolution, Revolution of Dignity, and the Euromaidan revolution. I like the sound of the Revolution of Dignity most, since we are fighting for our basic citizen rights over the dictator rule. Living through these events, I have come to think that, at times, further happiness can be achieved just through collective struggle. Even though the clashes that are ongoing and create a dreadful atmosphere, many people are happy to be there. People are demonstratingbecause they are willing to fight, not because they are forced to. Maidan looks catastrophic and depressive today, but people attending seem happy and help out with whatever they are capable of. It is difficult to acknowledge and realise that all the things happening here are happening to my country and its people. It is especially hard to realise the fact that people are dying for a better future, because of a student revolution that started so peacefully.

And here I stop, I am leaving to Maidan and will continue writing as soon as I come back.”

The next day on the 22nd of February, I receive a message from Dima at 13.03: “Yesterday, at Maidan, the situation was calm. No clashes and no fire. Instead, there were dozens of coffins carried near the Maidan,( heroes to whom we said goodbye. Afterwards I went to Sophiyska Plosha (Sophiyska square) where the oldest church of Kiev is located. There we lit candles and mourned for a hundred of those, who sacrificed their lives in the battles of last months. You could stand there forever watching the candles burn and people sitting nearby and praying, but it is, though, too sad to watch it.”

Later on the same day I receive a live feed message from Kiev at 16.25:

“Our Parliament has voted to impeach Yanukovych and has set a new election for May 25th! – D”

23rd of February:

“Regarding the future of Ukraine, I, as for many others, hope and believe that people will learn their lessons from 2004 when Yanukovych was chosen and will rely on the newly chosen politicians. This also requires challenging them and recreating the entire system in general, in order to eradicate all the corruption and other flaws which have spread all over [the country] during the last 10 years. I hope that our old Prime Minister, Yulia Tymoshenko, who was imprisoned by Yanukovych in 2011, will get back to politics. I am not dreaming of this ideal-democracy-bullshit, but I truly wish that Ukraine would evolve into something that people could call a country of active citizens.”

Since messaging with Dima, Tymoshenko has been freed from imprisonment and continued closely in politics with the interim president, Olexander Turchynov who was named as the spokesperson by the parliament. Turchynov states that the country is under the risk of separatism between Russian speaking East Ukraine and the rest due to the eviction of Yanukovych. The ex-president fled to Russia after being wanted for mass-murder and gave a speech on February 28th from Moscow. Unknown Russian troops entered the Russian speaking part of Ukraine, Crimea which is a southeast peninsula in the Black Sea, monitoring its airport and raised Russian flags to Crimean parliament building. Since then, most of the troops have left having created suspicion of Russia monitoring possible Ukrainian mobilization in Crimea where the new government are least popular.

What will happen to Ukraine in the following months is hard to predict. A big country, of more than 45million citizens, needs a strong, reliable government but stability requires a fashion of active citizenship to challenge the power of the authorities. According to many scholars, states are built for its population, but in the contemporary liberal economic world, self-interests are the driving forces in today’s politics. This was also be a possibility in Ukraine’s case where Yanukovych strived for more power, undermining the legitimacy of his rule.

Active and educated pioneers, such as Dima, are examples for students and citizens who seek to create an inclusive and participatory political processes and sustainable security methods for post-conflict Ukraine.

By Charlotta Lahnalhati

Image Credit:

Picture 1: streetwrk.com, licensed under CC BY-ND 2.0
Picture 2: Sasha Maksymenko, licensed under CC BY-ND 2.0

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The Pink Elephant

Céline Sonnenberg — Fri, 28 Feb 2014 14:27:20 +0000

“An eye for an eye only ends up making the world blind” This quote by India´s most famous social leader Mahatma Ghandi, shaped India´s fight for independence. But times have changed and in the current battle of India´s women, the approach of peaceful opposition seems to lead nowhere. Again and again western media and people are shocked by the violent crimes against women, be it the gang rape of two women by the seven coworkers of their husband and son or stories of the suffering of child brides. Despite having passed various laws against inequalities and being led by female president Prathiba Patil until 2012, India seems to be unable to win the battle against sexism and domestic violence.

A group of women in Bundelkhand, one of India´s poorest regions, is fighting against violence and corruption in their life with an approach that Gandhi might not have been fond of. These women take their fate in their own hands and stand up against rape, abuse and exploitation with the same violence that is used against them.

They call themselves the Gulabi Gang, which translates to the pink gang. Pink is a colour not used by any religion or political party and was therefore chosen by the gang´s leader Sampat Pal Devi; a child bride, married at only eleven herself, mother of five and basically illiterate, she is the heart and the voice of the over 20 000 women, who are part of the gang today. Since her early childhood Sampat´s interest in equality and justice has shaped her life. After making her brothers show her how to read and write basic words, she persuaded her parents to send her to school as well. Even though she only completed four years of education, this is still more than most young girls in the rural areas of India achieve. While she only formed the actual gang in 2006, by giving them a uniform and a name to gain more influence, she understood the power of many long before that and motivated women to stand up against their abuse united, as a gang for justice.

Quite an ambitious goal for the women, who usually have no access to education and in majority stem from the lowest caste, the untouchables, living in the poor villages, far away from the capital New-Delhi. India´s old caste system stems from Brahminical texts and grouped the population in four casts: Brahmins (priests and religious high class), Kshatriyas (political leaders, rulers and the military), Vaishyas (merchants and farmers) and Sudrahs (the assistants and servants to the other castes). Excluded from this caste system and at the bottom of India´s social and economic system, stand the Dalits or untouchables. Even though the caste system has no legal support in India´s law and discrimination against members of lower caste is a crime anchored in the constitution, discrimination against and exploitation of Dalits is still taking place, especially in the rural areas.

“Nobody comes to our help in these parts. The officials and the police are corrupt and anti-poor. So sometimes we have to take the law in our hands.” tells Sampat Pal the BBC. Next to corruption, bribery and misinformation for example about governmental aid, the unawareness about their rights is a big problem for many low caste Indians. Sampat and her gang members, who often face combined discrimination not only for being a woman but also an untouchable, stand up against domestic violence, forced marriages and rape. Sampat takes a leading role in all of the missions, as the figurehead and spokesperson of the Gulabis. Her charisma and convincing speeches are often enough to solve the problems. Even though the Gulabi Gang achieved public interest through using pink bamboo sticks (laathis), the traditional self-defence weapon of India, to beat unsagacious husbands and ward of police officers, they try to solve all problems with open communication first. “When I go around with a stick, it’s to make men fear me. I don’t always use it, but it helps change the mind of men who think they are more powerful than me.” The gang´s real power, much like the Indian elephant, stems from their size.

Their activities range from helping old women to get their pension, threatening corrupt officials, making sure food rations reach the right people, stopping forced marriage, domestic abuse and the exploitation of women by their husbands and in-laws. And if reaching those goals means hijacking food transporters or beating policemen they will do it. With the help of funders all over the world the gang even managed to open a school in order to start with the trigger of many problems: missing education. Teaching not only math, reading and writing, but also sowing, the school makes sure their students will later on be able to make their own basic income. School uniform and even chalk are – of course – pink.

The reaction to the womens´ activism by men is surprisingly positive. “Let good come, be it through men or through women. We have to survive” says one of the men, attending the recruiting of new members. Another one claims: “I feel if we support the Gulabi Gang there will be great progress in our village.” A number of men now also take part in the gang and support their wives.

Their influence and attraction did not go unnoticed, not only by various local and international newspapers, authors and film makers, but also by India´s political parties. Sampat Pal was invited by a number of representatives to join them, but until today did not choose to step up to that. Luckily for the Gulabi Gang one might say, as it is not easy to see where the movement will go without her. Currently there is no obvious successor for their leader and the gang is highly dependent on her influence and name. Sampat Pal encourages and strengthens the other members, however especially in film scenes showing the gang large differences in their attitude are visible. Most of the women are happy to leave the stage to their charismatic leader and the question, if this gang will be able to survive and keep influence without her, must come to mind. Finding a follow up proved to be hard for Sampat since the respect she has gained in the villages usually come from her persistent and open character. She does not back down and she keeps insisting on her and others´ rights. Sampat´s passion and persistency are rather unique and the large amounts of time she spends revisiting officials and families again and again are honourable. In such a corrupted state as India without constant control the walls she brought down, could soon be built up again.

By Céline Sonnenberg

Image Credit:

Picture 1: Michael Coghlan, licensed under CC BY-SA 2.0

Picture 2: Allessandro de Tufo, licensed under CC BY-ND 2.0

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The Global Happy Meal

Marise Ayoung — Fri, 28 Feb 2014 14:20:23 +0000

It is one of the largest restaurant chains in the world spanning 116 countries, 34,000 restaurants and employing 1.8 million people worldwide. McDonald’s has become synonymous with fast food and the brand has infiltrated the world. My own experience with the fast food giant is somewhat different. In my home country of Trinidad and Tobago, McDonald’s was reintroduced only two years ago after closing down in 2003 due to low sales. As for their hefty human resources total of 1.8 million employees, that figure trumps the entire population of my country. Yet there is more to the chain’s story than enabling millions of fast food junkies. Behind the golden arches logo lays a deeper association that many of us tend to ignore when biting into a juicy Big Mac. The fast food royalty can be tied to more profound claims of modernity representation, cultural imperialism and global consumerism.

The global reach of the company was confirmed when “The Big Mac Index” was first propelled to fame in 1986. The Economist suggested that the value of national currencies could be measured by comparing the prices of a Big Mac across the globe. The term is still used to this day making economic theory easier to understand for the everyday man and giving tourists a benchmark for the cost of living in their desired destinations. A few years later, in 1996, Thomas Friedman put forth his theory, riddled with satire, suggesting that no two countries that were home to a McDonald’s franchise had ever gone to war with each other. According to Friedman “…people in McDonald’s countries don’t like to fight wars; they like to wait in line for burgers.” As ridiculous as the theory sounded, at the time it was found to be true. In 1999, however, the war between India and Pakistan over Kashmir refuted the theory.

The entrance of the fast food dynasty is symbolic of a host country’s entry into the global capitalist market and its unification with the rest of the world. It can be seen as a symbol of reaching modernity and attaining a stable economy. Vietnam is the newest member of the Big Mac joining this month on February 8 with its first restaurant in Ho Chi Minh City. The New York Times reported on the fast food chain’s introduction in the Vietnamese market, claiming “It was inevitable, consultants said, that more American brands would enter the country once the economics looked more appealing. Vietnam’s per capita income rose to $1,550 in 2012 from $1,000 in 2008, according to World Bank estimates, and inflation has stabilized.” The new franchise owners of McDonald’s Trinidad and Tobago is Arcos Dorados, the largest McDonald’s franchisee in the world in terms of system- wide sales and number of restaurants. Trinidad marketing manager for Arcos Dorados, Milagros Bermudez, remarked on the Trinidadian economy stating, “We discovered that it was pretty stable here. Also, it’s amazing all the options that local people have here and we were missing that. Trinidad is very important to us and we are looking forward in investing in this island. The money we have invested in this process… we don’t put a number. We are sure we’ll make it back.”

Key to the success of the chain is its precise marketing schemes that not only tap into the native markets but covert local tastes to favour Western–styled fast food. Techniques used by McDonald’s to establish their brand locally include the adoption of local flavours and dishes to their menu. For example in India, there are no beef products on the menu due to the prevalence of Hinduism. Instead, patrons can purchase a McAloo Tikki Sandwich where the typical burger patty is swapped for a potato alternative. Some may admire this approach taken by the corporation and applaud it as cultural sensitivity. However, some may consider this infiltration a mark of cultural imperialism. The new type of food offered by the outlet can be viewed as modern and fashionable, which may mean trouble for local vendors and home cooking. According to Markus Taussig, an assistant business professor at the National University of Singapore and a former Vietnam resident, “McDonald’s in Vietnam is going to be packed with parents, many of whom will not be eating because the food doesn’t appeal to them but who will be happy because watching their kids munch away on burgers makes them feel they’re part of something positive and modern.”

The secret sauce to the success of the food chain is not only its marketing strategy but also its combination with mounting global consumerism. Globalisation has encouraged not only quick and easy travel and open markets but its effect has manifested a global culture of fast food fixes and global Happy Meals. The trend is now toward the development of a universal culture and although the space between civilisations is closing, the bridge is being made of fries and not as a product of real cultural exchange.

So how is McDonald’s coping in Trinidad and Tobago? Over the last two years, five new McDonald’s restaurants have been opened in the country and business seems to be flourishing in the island whose area totals 5,128 km². In true McDonald’s fashion, the marketing scheme by the new Latin American franchise holder, Arcos Dorados, incorporated local appreciation for spices and offered novel services. McCafé fulfils coffee needs, Auto Mac allows for “drive-thru” access, PlayPlace offers an area for children’s entertainment and the DessertCentre satisfies sweet tooth cravings. Additionally the chain offers the “Fresh” line of menu items that provides healthier alternatives such as salads and fruit with Happy Meals. The same company thus satisfies the needs of multiple patrons with varying tastes. I wondered how we ever survived before their arrival and then I remembered – we cooked most of our food at home, we rarely drank coffee in 35 degree Celsius weather, our children played outside in the savannahs and dessert was centred around homemade coconut ice cream.

It would seem that the cost of diminishing local cultures by capitalist incentives could be found on the Dollar Menu. Although the effects of fast food chains around the world are discreet, they are still present. We really do need to ask ourselves “Am I Lovin’ It?”

By Marise Ayoung

Image credit:

Picture 1&2: Mike Mozart, licensed under CC BY 2.0

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An Insecure Future

Meike Fernbach — Fri, 28 Feb 2014 14:05:20 +0000

At this point in my life I’m totally going with the big hazy mess. I’m 20 years old, have an ocean full of possibilities, but no idea in which direction to sail.

The question that has been tormenting me for the past two years, probably similar to most other people my age is “what do I do after graduation?” For me, university has been the obvious choice, because getting a good education consequently must lead to a good job… right?

Well, no. Actually it doesn’t look like it. Unemployment rates for young people have soared dramatically following the 2008 financial crisis. Between 2008 and 2012 the number of unemployed young adults has mounted by more than two million in advanced economies, growing by almost a quarter in two thirds of advanced countries.

The statistics for unemployment in the European Union in September 2013 have been the opposite of consoling for its future workforce (when phrasing it nicely). Spain and Greece, with leading numbers, have shown rates of 56,5% and 57,3% of unemployment (needs to be verified). That is far more than half of the countries’ population! It is a miracle people haven’t started reserving spots in hostels for the homeless. I myself come from Germany which is presently showing one of the lowest rates of unemployment in the European Union with 5,2% which is approximately 90% less than in Greece, nevertheless frighteningly high. With unemployment rates as high as they are, young adults are becoming much less selective about work offers, taking jobs they are overqualified for or not in the work field they enjoy, just to avoid making the list of the unemployed.

So where does this leave me with my choice to study? Do I even want to study after seeing these alarming numbers? Or do I want to secure myself a job as quickly as possible? And if I decide to study after all, I have to ask myself the question whether to study something that will lead me towards a job that is always in demand, like a doctor or a teacher, not being selective about work enjoyment, but rather focusing on the security of it. Or do I go into social sciences after all, hoping to find a job in an area where you can be as optimistic about finding work as a vegetarian can be about finding lunch at a steakhouse.

It is becoming more and more apparent that in order to find a satisfying job, you must be excellent at what you do. And I think in order to be excellent at what you do, you must be passionate about it and get the best education possible. So, forgetting the numbers of unemployment, in my opinion going to a university and studying in a field that doesn’t bring a knot to your stomach when you think about being occupied with the subject for the rest of your life is still the path to take if you want to have a chance at finding a job that can support yourself, or maybe even a family in later life. Maybe this is a naive way to look at things, and maybe I will change my mind if unemployment ever hits me. But at the moment, the only way I see myself living in an auspicious future is by creating an auspicious present.

Photo credits:

Tax Credits, licensed under CC BY 2.0

Clementine Gallot, licensed under CC BY 2.0

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Bitcoin – Online Currency with a Future?

Elena Liski — Fri, 28 Feb 2014 13:47:42 +0000

The course of Bitcoin from November 2011 until today

Bitcoin, Litecoin, Peercoin, Dogecoin… So called crypto-currencies are springing up like mushrooms and their estimated value exceeded 7,5 billion€ in the beginning of February. Of this capital, 80% belongs in the hands of the Bitcoin owners. We are talking about 6,000,000,000€. To put this into perspective, that is at par with the valued assets of H&M, and easily tops the GDP of such countries as Macedonia, Laos or Rwanda. Bitcoin would rank 139th right between Malta and the Bahamas.

Crypto-currencies are digital and global mediums of exchange that no group or individual can control. Otherwise, they function in a very similar way to money, but only online. They are not backed by a governmental central bank, but instead, their value is completely based on their market appeal. Simply, the more we want them, the more they will cost. The pioneer of modern crypto-currencies is Bitcoin. It is not only a form of digital money, it’s a new technology that most other cryto-currencies are based on. Bitcoin was designed and introduced 5 years ago by a group, or individual, that we know as Satoshi Nakamoto. The currency itself can’t be dominated by even Nakamoto, but instead its basis lies in highly advanced technology and encryption with a software that is completely open-source for anyone to review.

With centralized money, the authorities decide when to print more notes. But with crypto-currencies new money is found by the users. New bitcoins are found through the process called mining. Bitcoins are mined with powerful computers that solve highly complex math problems. The mining itself is free, but the suitable equipment can be costly. The more bitcoins that are found, the harder the finding process becomes. Some of the users have made a 2-minute-video that explains the basic idea in a way that can be easier to grasp.

There are a few key factors as to why Bitcoin and its followers appeals to the consumers.

They can’t be counterfeited. Some digital currencies, such as Bitcoin, are called crypto-currencies because the basis of their security is military grade cryptography that, for example, the US government uses. The transactions are as protected as any other type of electronic bank transfers. Unlike common money, however, copying bitcoins is not a possibility, because the cryptographic protocol makes it impossible to use the same bitcoin twice. Each one is unique and so is their position in the block chain. The block chain is the ledger for all bitcoins and it shows who has the coin at the moment by openly showing all transactions. Everyone can agree, where the currency is, because they can trace it down from the block chain.
There is only a limited amount ofcoins. The maximum amount of bitcoins is 21 million. This means that 99.9% of the bitcoins will have been found by 2040. Because more bitcoins can’t be produced after all have been found, the assumption is that this will raise their value.
Use is cheap and anonymous.The benefit of using Bitcoin is instantaneous, with global transactions costing very low to zero fees. Paying with bitcoins is as easy and cheap as sending emails. Though all transactions are public, perfect anonymity is provided by using nicknames. The virtual wallet, where bitcoins are stored, works similarly to an email account. Anyone can send you bitcoins, if they know your address. Since, all transactions are public, it is recommended to get a new address for every transaction. This way no one knows how many bitcoins you have. All assets can still be banked into the same wallet. As long as the wallet is encrypted or not connected to the internet, no one can steal your bitcoins. The downside is that the bitcoins can be stolen if safety measures are not taken care of. It is impossible to get them back afterwards since transactions can’t be cancelled.
They can make you wealthy. Some early users of bitcoins have become rich after investing inthem before the sudden increase, and such booms are still possible. Bitcoin’s value is extremely volatile due to two key factors: its young economy and relatively small consumer group. The users are still experimenting with the currency in order to find out how beneficial it can be. In this sudden variation of value, Bitcoin has more similarities with stock markets than with money in the traditional sense. The value of the currency can fluctuate between hundreds of Euros during a day. Many Bitcoin investors hope to profit from this. The extreme changes in market value are one of Bitcoin’s weakest points, as well.

Not all aspects of Bitcoin are just future prospects and sudden success. It has had a rough road trying to attract a wider range of users since the name became synonymous with the internet’s most infamous online black market, called Silk Road. Bitcoin became affiliated with money laundering and drug trafficking, a reputation it has had a hard time abandoning. The original Silk Road, which was closed by the FBI in October 2013, has already had a successor as of early November – Silk Road 2.0.

Although, some believe that Bitcoin isn’t real money, it still possesses real value. And our authorities have become aware of this fact. Central banks throughout the world are jumping in to announce their negative opinion, now that they feel that crypto-currencies are trying to invade their territory. On January, Carl-Ludvig Thiele from the Federal Bank of Germany was one of the latest authorities to warn people of the possible deflation in the value of Bitcoin because the value is not backed by a state. This can be considered ironic, since the hyperinflation of the German mark in 1920s was mostly caused by the poorly performed fiscal policies of German government.

Bitcoin’s image faced another blow quite lately, when China and Jordan banned its use by financial institutes. Also, trading bitcoins is illeagal in Russia, Thailand and Iceland. But these governments are not the only ones that are aiming to control the currency-without-a-nation. Many European nations and, for example, Singapore have issued a tax on Bitcoin since it can be considered an asset. These new regulations have made users wary and have negatively affected the course of Bitcoin, but have also given it some legal status since most Western nations have allowed companies to trade with it.

Lately the headlines have also been screaming Bitcoin’s decrease in value when trading site MtGox, the largest Bitcoin exchange, didn’t function properly. The price of a bitcoin dropped as low as 70€ and was up again by about 200% during the course of last weekend. Similarities to the 2011 can be seen when MtGox faced security problems and Bitcoin spent an entire year gaining back the trust of consumers after 600 wallets were hacked.

Despite the ups and downs, crypto-currencies have a greater user base and more power than ever before. Their status has been somewhat stabilised in Western markets and more people are willing to try them out. In a way, the media hype has served its purpose. There is no bad publicity.

By Elena Liski

Image Credit:

Picture 1: Zack Copley, licensed under CC BY-SA 2.0

Picture 2: scottks, licensed under CC BY 2.0

Bitcoin – Get Rich or Mine Trying

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