- For proponents of Bitcoin, the cryptocurrency, a shaky Mediterranean economy implementing capital controls amid the prospect of full-blown exit from the euro recalls halcyon days gone by.
- As a result, Tony Gallippi, the co-founder of bitcoin payment processor Bitpay, tweeted on Sunday night that he expected the price of bitcoin to rise to between $610 and $1,250 if Greece exits the Euro.
- Part of the reason why the crisis is so tempting for proponents of the cryptocurrency is the echoes of a previous crisis in the Eurozone: the banking collapse in Cyprus in 2013, which saw that nation also impose capital controls to prevent massive outflows of currency from the panicking country.
- That collapse came at the same time as the first major boom in the price of bitcoin, which began the year at less than $20 and peaked at ten times that by early April – before it all came crashing down.
- At the time, many credited the price rise to interest in the currency sparked by the banking crisis, but Nathaniel Popper, author of the book Digital Gold: the Untold Story of Bitcoin, says that they are labouring under a misapprehension.
Proponents hope cryptocurrency could soar in value as Greeks try to find ways to keep their money safe and avoid currency controls
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