Various estimates and ground reports as well as reports from various Bitcoin exchanges show that as Greece enters into deep financial mess and sitting on the verge of first loan default, the demand for Bitcoin has gone up. This week alone there was a 35 percent increase in activity in Greece compared to average weeks for the company Coinbase.
David Bailey, the CEO at Bitcoin-focused BTC Media informs that he has heard some anecdotal stories; however, overall this comes from people attributing Greece fallout to what happened to Cyprus a year ago. It looks clear that whenever financial issues appear in the economies demand for Bitcoin goes up; BTC saw large gains during the Cypriot financial crisis in 2013.
Bitcoin Exchange Rate against Dollar Went Up to $270
Similar views have been shared by the co-founder of Vaultoro, a Bitcoin exchange which lets customers exchange the cryptocurrency for gold as he says that there had been a 124% increase in visits from Greek IP addresses. Bitcoin is an option that can be extremely suitable for those who have limited access to ATMs.
Even CNNMoney reported that over the weekend, Polish exchange Bitcurex was flooded with emails from Greeks as many of them are asking if Bitcoin was a legal currency in the European Union and whether the exchange had a Bitcoin ATM network in Greece. Though a slight hike in the Bitcoin’s price was seen earlier this week, it could not move above $270.
Will the Bitcoin see the Growth in Exchange Rate it Saw in November 2013?
However, if the demand for Bitcoin continues from Greeks, this could encourage even more people to seek shelter in Bitcoin, potentially driving prices up even further. In November 2013, the value of Bitcoin soared to an all-time high of over $1,000 a coin but lost a lot of sheen as in mid-December upon news that Chinese regulators banned financial institutions from using it.
Nonetheless, as debt negotiation talks have fallen through since, capital controls have been imposed on Greek banks, with a 60 Euro limit on daily withdrawals, and banks have shut for other transactions till at least July 6, Bitcoin is providing the much needed relief. Bitcoin offers an alternative to national currency, in such a financial crisis; it is emerging as a real choice.
To contact the reporter of this story: Deepak Tiwari at email@example.com