Bitcoin prices experienced a sudden surge earlier last week. The price which was hovering at around 225 USD to 227 USD suddenly shot up to cross 250 USD. So what caused the sudden surge and what does it imply?
First, let us get to the bottom of the price gain and to do that, we need to have some knowledge of current world affairs, especially in Europe (which most of us might already know). One of the nations in the European Union (EU), Greece has been in troubled waters for a while now. The country started experiencing an economic slowdown in 2008 and the condition has been deteriorating since then. In order to revive the economy, Greek politicians decided to seek help from the International Monetary Fund (IMF) and European Central Bank (ECB) and Eurozone countries forming the Troika. The Troika decided to revive the country’s economy by lending a huge sum of money amounting to 110 billion EUR.
The bailout package did come with riders that required Greece to implement austerity measures, make structural reforms and privatize government assets. The Greek government failed to implement all the reforms as per the bailout agreement and the economy still continued on a downward