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In the Wake of Greek Crisis Bitcoin Experienced a Surge

Bitcoin saw a surge of 7% in what one call the longest winning streak in an year and a half! As Greece on the verge of falling out of Euro zone, Greek depositors and speculators have turned their attention to the unregulated digital currency.

Greece is being considered for an exit from the European Union because of 1.6 Billion Euros worth of debt that is owed to the International Monetary Fund
by the end of June, said Greece Prime Minister Alexis Tsipras.

What is Bitcoin?

Bitcoin was invented 6 years back and is a web based digital currency that is not regulated by any bank or government agency. This is the reason this crypto-currency is highly volatile that fluctuates as per the demands of the users.

Even though its value has experienced high volatility in the last few years, it has been stable for the past 6 months and is gaining prominence as well as a valuable asset in some of the most significant financial institutions. Read more here.

How does Bitcoin Come into Greek Picture?

Vaultoro.com is a company that preserves the customer’s bitcoin and allows them exchange it for gold or the other way round. Its co founder Joshua Scigala said that the Greeks have been investing in Bitcoin as they became vary of the authorities. Another reason that Grecians have been buying Bitcoin is that if the Grexit were to happen, what currency will be used.

The people of Greece have been worried about losing their life savings by being locked up in the banks and this is why they are investing in private assets such as gold and bitcoins.

Scigala also revealed that the company has noticed an upsurge of 124% in the last 2 months since Greece has been going over their final talks with the creditors.

Bitcoin’s Rise

Bitcoin was last trading at $252.05 on BitStamp exchange, the strongest it has been in the last 2 months. With the last value, Bitcoin marked its sixth season of gain in a row.

In 2013, bitcoin value shot up by 700% in just a month as Cyprus refused withdrawals and detained any deposits made. This rattled the faith of the people in fiat currencies.

It is not known if Cyprus episode led to the surge in Bitcoin value by 700% back in the day. However, it is definitely being affected today by potential Greece Exit from EU. Bitcoin may be able to offer an alternative to the people who are worried about the power struggle in capital controls once the exit happens.

For more news on Bitcoin, read Bitcoin News.

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