Since the start of the month, bitcoin has surged from $223 dollars to just over $250 dollars, having peaked at $257. This marks one of the best runs in recent memory and appears to have been spurred by increasing worries over a Greek exit, or “Grexit” as it’s sometimes called.
Greece’s central bank has warned Greece that it could literally be thrown out of both the Eurozone and the European Union if it does not reach agreements with its creditors quickly. This marks the first time the central bank has released such a dire outlook, highlighting the increasing gravity of the situation.
Greek has only two weeks left to raise 1.6 billion euro to make an IMF payment. As of right now, the Greek government lacks the cash and is trying to raise another round of loans in exchange for more concessions and reforms.
Talks, however, have not been going well so far with both the Greek government and its creditors refusing to budge on key issues.
Greece has stated that its public pensions, which amount to a whopping 16 percent of the country’s GDP, are not on the negotiating table. Greece’s creditors, however, have been insistent that Greece should cut pensions by at least 1 percent of its GDP. Creditors have identified early retirement rather than individual pensions as their target.
Creditors are also looking to increase Greece’s VAT tax, specifically on electricity, though other items for tax increases are also being considered. The Greek government has said that it will not raise taxes on either electricity or medicines.
With time quickly running out and both sides remaining so far apart in terms of their expectations, the risk of a Greek exit from the Eurozone and potentially even European Union is becoming
Originally appeared at: http://99bitcoins.com/bitcoin-on-the-rise-as-grexit-fears-mount/
Bitcoin on the rise as “Grexit” fears mount is a story from: BitcoinWarrior.net