We have all heard about the financial problems facing Greece. These have led to sharp declines and weakening of the Euro currency used in the Euro Zone. The problems of Greece begun with the small economy of 11 milion people spending beyond their means as well as problems with tax evasion. The current problems have been propagated by a debt of 1.4 Billion Euros due to the IMF yesterday. The situation has even seen a Greek man take to crowd funding site Indiegogo to raise funds to offset the threat.
Amidst the turmoil, European investors have taken to commodities and other fiat securities to put their money. One interesting addition is Bitcoin. The crypto-currency has seen an uptick in volumes of about 300% within Europe in the last 48 hours to date according to Fox Business. The value of bitcoins has also risen 10% since Friday, when News of Greece’s likelihood of default on the loan emerged. One bitcoin is currently valued at $266.24 dollars as of today.
Bitcoin arose as an alternative currency exemplifying the need to have a currency during economic turmoil. The situation in Greece enforces that message which proponents have been vocal about. While Bitcoin may have risen as other fiat currencies, gold, oil and even silver, this shows that people have confidence in the alternative currency. Still, not many people in Greece or the Euro Area are well aware of the currency.
Starting back in 2009, Bitcoin offers users the ability to buy virtual currency through the system and sell it back to anyone else in the world who accepts it. While this is essentially no different from buying and selling with any national currency, Bitcoin attempts to act as a modern currency for the digital world and a true medium between all vendors in the world.