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Digital Currencies a Silver Lining in the Dark Cloud of Greece's Economic Crisis

• https://bitcoinmagazine.com

As the world watches nervously, Greece, under pressure from the European Central Bank, takes the serious step of imposing capital controls: Banks are closed, ATM withdrawals are limited and funds cannot be sent out of the country.

Capital controls will be in place at least until July 7 after Sunday's citizens' referendum that will ask Greeks if they want to remain in the European Union and accept their creditors' terms.

Will Bitcoin benefit from the current crisis?

There's lots of speculation that the rate of adoption of digital currencies may increase more rapidly as a result of the current crisis in Greece.

CNN makes the case noting:

"The world's largest Bitcoin exchanges tell CNNMoney they've seen a surge of business from Greece." and

"Ten times as many Greeks are registering to trade bitcoins on the German marketplace Bitcoin.de than usual, according to CEO Oliver Flaskaemper. Bitcoin trades from Greece have shot up 79% from their ten-week average on Bitstamp, the world's third-largest exchange."

In an article on CNBC , Brendan O'Connor, CEO of digital currency-specialists Genesis Global Trading says:

"(Bitcoin) had been middling around the $235-245 range for several months, and all of the sudden this crisis escalates and you've gotten yourself a nice 10-point pop…Greece was likely the only factor behind the digital currency's upward momentum."

Daniel Roberts, writing in Fortune Magazine, disagrees and makes the case that the small spike in the price of bitcoin would have happened anyway:

"There may be a growing global interest in purchasing bitcoin that is coinciding roughly with the Greek crisis — the currency's 2013 mega-spike coincided with a similar financial crisis in Cyprus — but the hike this summer began before the situation grew so dire in Greece."


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