Gold Takes a Backseat to Bitcoin During Greek Debt Crisis

Bitcoin has enjoyed a pivotal moment, thanks to the ongoing Greek debt crisis, which resulted in capital controls and an influx of funds towards the cryptocurrency. Indeed bitcoin prices have eventually landed back above the $300 mark, following a long period of consolidation around $220 earlier in the year. The prospect of shifting back to a potentially worthless drachma has led several Greeks to move their money to bitcoin, as some websites have offered bitcoin loans and investments while others offered to purchase Greek products using the cryptocurrency. This could allow Greek citizens....

The bitcoin industry had its ups and downs so far this year, a decent performance relative to the massive downturn it saw last year. What kind of developments did we see so far and how did these affect bitcoin prices? Greek Debt Crisis. Perhaps one of the biggest drivers in bitcoin price action so far is the Greek debt issue, which led to the imposition of capital controls in the country and left citizens with no other option but to move funds using bitcoin. Apart from that, the prospect of returning to a potentially worthless drachma in case the country is kicked out of the euro zone led....

During times of financial crisis, gold prices typically skyrocket as traders move their money to safe-haven assets. In the latest Greek debt fiasco, however, the price of the precious metal has barely moved while bitcoin has surged in the past weeks. There's no doubt that the financial concerns surrounding the Greek debt crisis have started to weigh on equities and other higher-yielding assets all over the globe. What's interesting, though, is that the flight to safety seems to have favored digital currencies rather than the traditional safe-havens. Digital Currencies and Greece. One....

With the day of Greckoning looming, xbt.social takes a look at what is at stake in the Greek referendum, its expected outcomes, and the implications for the Euro and for Bitcoin. Greek Debt Crisis Timeline. The Greek Debt Crisis began in December 2009 when several rating agencies including Fitch, Moody's and Standard & Poor downgraded Greece for fear of government defaulting on ballooning debt. Government responded by introducing austerity packages to curb spending on public services. In April 2010 Greece formally requested an international bailout under Prime Minister George Papandreou,....

The Greek debt crisis, heightened by the country's IMF default and the "No" vote on austerity, has led to money flows to bitcoin. Capital controls have been put in place in the country, which means that banks and the stock market are closed, leaving Greeks with not much alternatives when it comes to moving money around. Several sites offering bitcoin loans and investments, as well as some buying Greek products in exchange for bitcoin, have tried to keep the economy going. However, the rise in transaction volumes over the past days have exposed the weaknesses of the bitcoin network. Bitcoin....