Grexit fears might be taking a toll on stock and bond prices this month, but it has been a boon for virtual currency Bitcoin.
What may be the worst that may happen if Greece actually defaults?
Speculation indicates Greece will likely default and exit the eurozone, but this fact doesn’t seem to be worrying investors. Read on
The virtual currency continues to be steadily climbing this month as talks have divided between Greece and its creditors. Invented six years back as an alternative to fiat currencies, Bitcoin has climbed nearly 10 % in the past few days. On Wednesday, the value of one bitcoin rose 1.54 percent, or US$3.86, to US$254.76.
The main driver for bitcoin prices appear to be Greek buyers. ?Joshua Scigala, co-founder of Vaultoro.com, told Reuters now that his company has witnessed a 124 percent pick up in web hits from Greek IP addresses.
If Greece does exit the eurozone, it is unclear what currency the country would use, since it currently trades in euros. Another problem is the possibility that the Greek government could implement capital controls around the country’s banks soon. Many Greeks happen to be pulling out their savings, fearing the results a default would have on Greece’s financial system.