Bitcoin value surges as Greece heads towards European exit

Lots of bitcoin

The cryptocurrency hit a four-month high on the 5th July, the same day that Greece rejected bailout terms proposed by the Eurozone.

Last week Payment Eye turned its attention to the Greek financial crisis that’s paralysing its citizens. We posed the question – Is the Greek crisis raising the value of Bitcoin? The answer is becoming clearer by the day.

On 5th July, news broke in Athens that a ‘no’ vote had been cast during its referendum on creditor’s proposals.

On the very same day, Coindesk’s Bitcoin Price Index revealed that the cryptocurrency’s value had risen to $273, the highest it’s been since March.

With over 60 per cent of the public voting against a Eurozone bailout, traditional financial markets are set to become even more volatile, making Bitcoin more appealing to those who are struggling to survive with cash.

Bitcoin entrepreneurs are predicting that Greek citizens will soon start to invest in capital that is less easily affected by the financial crisis.

‘‘Some people aren’t waiting for the government to figure out an exit plan and are doing it for themselves,’’ commented Joshua Scigala, founder of online bitcoin and gold exchange Vaultoro.

‘‘You have people worrying about their family’s wealth or their life savings, and worrying that their money might be locked in banks. They’d rather hold money in a private asset like gold or bitcoin.’’

Elenu Varela, founder of Bitcoins Greece and one of the country’s biggest cryptocurrency aficionados feels that the financial meltdown has given the alternative currency the opportunity to enter what she calls a ‘‘safe haven’’ for investors.

‘‘Nowadays, digital assets like bitcoin have joined that asset class. Because cryptocurrencies are global and do not rely on a healthy banking system, it is logical for people to stockpile them in times of uncertainty.’’

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