The Greek debt crisis reappears, which may trigger a new round of Bitcoin fans

Greece's economy has been hit hard as European lenders and the International Monetary Fund (IMF) have imposed austerity measures across the country. In just one month, citizens have withdrawn 2.5 billion euros in cash from regional banks despite the Greek government's capital controls. Greece's turbulent economy is likely to once again boost demand for Bitcoin.

Will the impact of Grexit lead Greeks to Bitcoin?

Due to capital controls, each Greek citizen can only withdraw 1,800 euros per month. However, in the past month, the country's capital flight policy has not prevented a large number of Greek citizens from withdrawing their funds from banks. Throughout Greece's economic depression, Bitcoin has become a widely recommended alternative currency for citizens of the country. As early as 2013, the debt problem of its neighbor Cyprus triggered a round of crazy rise in Bitcoin. In June 2015, the news of Greece's withdrawal from the EU also stimulated the public's demand for Bitcoin.

The price of Bitcoin rose from a low of $225 to $309 in the summer of 2015, when Greece was preparing to leave the European Union. At the time, foreign lenders and Greek authorities were having problems maintaining the country's economy. Some banks were forced to close, many bank ATMs were paralyzed, and credit cards were shut down, which alarmed Greek citizens.

(Bitstamp CEO Nejc Kodrič's comments during Grexit)

During the Greek crisis, Bitcoin supporters began to find ways to attract Greeks to the Bitcoin economy. Thanos Marinos, founder of Bitcoin exchange BTCGreece, said that demand for Bitcoin in Greece has risen by 400%. Other companies, such as Coinbase, waived transaction fees for European customers in the month of Greece's exit from the EU. Erik Voorhees, CEO of cryptocurrency exchange Shapeshift, proposed that members of the Bitcoin community send some small amounts of Bitcoin to Greek citizens. In addition, Coinbase pointed out at the time that despite the inability of Greek users to use their platform, the company still saw a sharp surge in demand for Bitcoin in Europe.

“In the past few weeks, we’ve seen a 300% increase in demand for Bitcoin in Europe (although demand from Greece is still low, mainly because they don’t have access to Coinbase yet)”

Storing Bitcoin is safer than keeping cash under your mattress

According to foreign media Eidiseis, the recent cash withdrawal crisis in Greece has shaken the banking industry in the region. According to informed sources, the Greek Banking Union believes that "time is not conducive to their work," and Greek citizens may once again choose to store their wealth in their homes, safes, and mattresses, and they may even convert their money into other alternative currencies (such as Bitcoin). Currently, there are several ways for Greeks to understand this decentralized currency and obtain it: 1. Localbitcoins, but the current price of BTC on this platform is $30 higher than the market average. 2. There is also a regularly held Bitcoin Meetup in Athens, Greece, 3. There are two Bitcoin ATMs in Athens.

So far, economic turmoil in countries around the world, such as Venezuela, India, the United Kingdom, and Italy, has added more demand for Bitcoin. The standoff between Greece and its creditors doesn’t seem to be going away anytime soon, and Greek citizens are increasingly fed up with austerity measures. Greeks and citizens of neighboring countries will likely find solace in digital currencies as a store of value. In addition, Bitcoin may be a far safer way to store your euros than to stash them under your mattress.