Sign up FAST! Login

Why Bitcoin Won’t Save Greece

Why Bitcoin Won t Save Greece Motherboard


Many people are linking the potential default to a recent surge in the cryptocurrency, which was worth $255.76 USD at the time of writing, the highest rate in more than two months, according to Reuters. Almost all of the stories on the front page of Reddit’s r/bitcoin were related to Greece on Monday afternoon, and various publications heralded Bitcoin as a solution for Greeks affected by the potential default. “Bitcoin is the real winner in Greece crisis,” one headline read. Anotherpublication called Bitcoin “the ideal instrument for Greeks to use as a store of value.”

But many Bitcoin experts are not convinced the crisis in Greece is to blame for the surge in the currency, and even fewer think it is the answer to the embattled country’s financial problems. Nicholas Weaver, a researcher at the International Computer Science Institute, said he thinks connections between Greece’s crisis and Bitcoin’s success are flimsy at best.

“The problem is Bitcoin’s price is so volatile and so thinly traded, and there is no effective way to short Bitcoin, the market ends up being very irrational—it goes up and down all the time,” Weaver said. “Trying to peg any relatively small move (in this case, about 6 percent over the past week) to any given news is hard for a normal market, it’s impossible for such a thinly traded commodity as Bitcoin.”

Stashed in: Europe, Bitcoin, Nordic!, Vice

To save this post, select a stash from drop-down menu or type in a new one:

You May Also Like: