It’s Greek to Me: What a Financial Crisis Means for Cryptocurrency


As people in the United States celebrated Independence Day last month, the Greek populace was on-edge after an international bailout was rejected. Since then, a bailout strategy has been put in place. It doesn’t really look like the Greek economy will see a large change from the injected funds, but that’s a different story.

The real story here is an unintentional case study that shows what happens when the worlds of failing economies meet the potential of digital currencies. Ahead of the Greek bailout fiasco last month, people had done what most people would do in such a foreseeable situation: they took their money out of the economy. They pulled out large sums of money and piled up debt.

Then, when the economy faltered and banks reacted, people couldn’t just do their business as usual. ATM withdrawals were restricted and people couldn’t take cash out at the bank. All of a sudden, the Greek populace saw a frightening picture of the reality of a failing economy. This situation has been somewhat remedied – for the time being at least.

During that time, however, the world saw something happen that had never occur before. This was one of the most major economy standstills a nation had seen since the rise of cryptocurrency.

Rocket-Engines-300x300To make a long story short, cryptocurrency saw a sharp increase during the Greek bailout standoff last month. Digital currency exchange Vaultoro reported a 124% increase in deposits from guests with Greek IP addresses. Bitcoin realized a 4 month peak at $273, and litecoin trailed behind with a 17% price increase.

When economies and centralized currencies falter, interest in cryptocurrencies skyrockets. Now that cryptocurrencies have a solid foundation under their feet, they can handle these fluctuations. Just as all economies crest, they also trough.

Interest in cryptocurrency has recently decreased somewhat in Greece. While the people of Greece aren’t as heavily reliant on Bitcoin and other altcoin at the moment, they now have an idea of where they’ll put their money in the future.

What will this do for the world of cryptocurrency? Only time will tell.

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