Why Bitcoin Wonâ€™t Save Greece
J Thoendell stashed this in Cryptocurrency
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, theÂ highest rateÂ in more than two months, according to Reuters. Almost all of the stories on the front page of Redditâ€™sÂ r/bitcoinÂ were related to Greece on Monday afternoon, and various publications heralded Bitcoin as a solution for Greeks affected by the potential default. â€śBitcoin is the real winner in Greece crisis,â€ťÂ one headline read. Anotherpublication called BitcoinÂ â€śthe ideal instrument for Greeks to use as a store of value.â€ť
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 countryâ€™s financial problems. Nicholas Weaver, a researcher at the International Computer Science Institute, said he thinks connections between Greeceâ€™s crisis and Bitcoinâ€™s success are flimsy at best.
â€śThe problem is Bitcoinâ€™s price is so volatile and so thinly traded, and there is no effective way to short Bitcoin, the market ends up being very irrationalâ€”it goes up and down all the time,â€ť Weaver said. â€śTrying 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, itâ€™s impossible for such a thinly traded commodity as Bitcoin.â€ť
My friend says Greece should follow Iceland's lead:
Here are the relevant articles: