Greeks Turn To Bitcoin To Dodge Capital Controls

Tyler Durden's picture

There is at least one legal way to get your euros out of Greece these days, to guard against the prospect that they might be devalued into drachmas: convert them into bitcoin. As Reuters reports, although absolute figures are hard to come by, Greek interest has surged in the online "cryptocurrency", as new customers depositing at least 50 euros with BTCGreece, the only Greece-based bitcoin exchange, open only to Greeks, rose by 400% between May and June.

As Reuters reports,

Using bitcoin could allow Greeks to do one of the things that capital controls were put in place this week to prevent: transfer money out of their bank accounts and, if they wish, out of the country.

 

"When people are trying to move money out of the country and the state is stopping that from taking place, bitcoin is the only way to move any value," said Adam Vaziri, a board member of the UK Digital Currency Association.

 

"There aren't any other options unless you buy diamonds, and that's very difficult to move."

 

But Marinos said the bitcoin buyers' main aim was to shield their money against the prospect that Greece might leave the euro zone and convert all the deposits in Greek banks into a greatly devalued national currency. If voters reject the demands of international creditors in a referendum on Sunday, this becomes much more likely.

 

"A lot of people are keeping all the bitcoins they buy on our platform, until they understand what to do with them," Marinos said. "In their eyes, now they have bitcoins, they're safe."

*  *   *

With Bitcoin having surged from $238 to $268 in the last few days since Greek PM Tsipras announced Greferendum, it is clear it's not just the Greeks that are losing faith in faith-based fiat currencies.

 

Ironically, on June 20, Greece got its first bitcoin "ATM", in a family-run bookstore in Acharnes on the outskirts of Athens.

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TeamDepends's picture

>Getting hammered tonight

>If we remain sober we can fix this

philipat's picture

Demonstrating again what should be happening to the price of Gold if it wasn't being suppressed by naked paper shorts.

Waylon Bits's picture

Buh gold and Bitcoin!  Best of both worlds!

Waylon Bits's picture

Thank-you for chosing fonestar.

Pool Shark's picture

 

 

"With Bitcoin having surged from $238 to $268 in the last few days..."

 

And promptly falling back to $256:

http://www.kitco.com/finance/bitcoin/

 


Bunga Bunga's picture

It's a free market, bitchez. Want something pampered by the central banks, CNBC has advice.

OrangeJews's picture

I think the Tyler's forgot to give credit to Liberty Blitzkrieg for this.

VinceFostersGhost's picture

 

 

Get gold.....fin.....the end.

 

Class dismissed.

Save_America1st's picture

the gold/silver ratio is currently at 74:1

 

Think about that before you buy gold.  S-E-V-E-N-T-Y-F-O-U-R  TO  O-N-E

Have some gold...a little.

But back the fucking truck up and stack that phyzz silver like it's going outta style.  Because it literally is almost gone.

The out of ground ratio is currently around 10:1

And silver miners are being wiped out every day while silver mining production is drying up all over the world and China, India and Russia are using worthless fiat bullshit to scoop up every ton of silver (and gold) they possibly can before the shit finally hits the fan.

After that...precious metals will rule the world once again.  And not only those who have the most gold will make the rules...but those who have the most fucking silver will also make the fucking rules.

Silver is being wiped out and hoarded away as a monetary metal and as an industrial metal which is used for dozens of things that gold is not used for industrially.

Gold is good for BIG things.  But silver is absolutey indispensible for 99% of everything else in this world. 

Get silver now and just wait...once that ratio comes back down to something "normal" then trade some silver for gold...if even any gold can be found. 

In 2011 the GSR came down to about 30:1 at the height of the silver spike up to 49/oz. 

This will happen again and in my humble opinion the GSR will go even lower...maybe back down under 20:1. 

Get silver now and just wait for the GSR to start falling.  Trade some at 50:1, then 40:1, then 30:1 and then 20:1 and hopefully we will gain very cheap ounces of gold for some of our cheap silver which will then balance out our phyzz stack at the bottom of the lake!!! ;-)

 

I hope the scumbags drive the paper price down even further.  Get it while you can while there is still supply and the premium is still relatively low.

Don't forget what happened in 2008.  Silver crashed to 10 bucks an ounce.  But premiums spiked to nearly 100%.  So it still cost nearly 20 bucks to get an ounce of silver.

Get it now ahead of the stampede before the shit hits the fan. 

This next time around there won't even be premiums...the shit will just literally not be for sale for any fiat price. 

But a monster box of silver Eagles or Buffaloes just might get you a kick ass chunk of land with a nice house on it somewhere out in the mountains off-grid and just might help you survive a while longer.

But don't forget first to stack guna, ammo, food, water, essential supplies and clothing, hunting/fishing/camping gear, and medical supplies.  Plus anything else you think you'll need like fuel, generators, heirloom seeds for a garden, etc. etc. etc.

I'm also recommending some kind of fire kiln in order to melt PM's down in orde to make small gram size bullion nuggets of silver and gold for the ability to make fractional purchases without the trouble of trying to use 1 ounce coins, rounds, or bars that nobody else will be able to make "change" for.  haha

boogerbently's picture

In a month or so, we'll be reading about how many Greeks LOST THEIR ASS buying Bitcoin.

Waylon Bits's picture

No they won't you tard... a Grexit is exactly what will push Bitcoin into the stratosphere and beyond.

shouldvekilledthem's picture

YES!

Bitcoin is scarce and has an amazing number of utilities.

Currently, there are about 15M bitcoin but there will never be more than 21M ever (by 2040 about 99% of the bitcoins will be issued by the protocol).

Each bitcoin is divisible so much, 21M coins means 2.1 quadrillion usable units.

The internet connected population is estimated to be 3 079 339 857 currently, but growing rapidly.

I'll leave the math to you ;)

nmewn's picture

Yes, clearly the thing to do in a crisis is gamble with ones savings and seeing it increase...let it ride!...lol.

shouldvekilledthem's picture

Your whole life is a gamble.

The difference comes down to fundamentals.

Choose:

Open source, decentralized, uncorruptible, uncensorable crypto based money.

or

Fiat Scam?

nmewn's picture

I've never been much on false choices or relying on any government to keep internet connections up & running during one of their many monthly-weekly-daily "crisis de jours".

That would be right about the time I might need some money ;-)

shouldvekilledthem's picture

As if only the government can keep the internet running...

I recommend reading http://www.kurzweilai.net/the-law-of-accelerating-returns

nmewn's picture

Sigh...I know a little bit about the internet, my point was CLEARLY they can shut it down anytime they want, call it a "national security issue", whatever. You see it now with all this ridiculous cyber security hogwash. Half the attacks are probably done by government(s) trying to create hysteria/crisis/purpose in order to control and/or regulate it.

You need a POP dude, you also must have commercial power, you must have a device in order to even access the internet...all of these things have zero to do with MONEY. Furthermore, the internet is an encumbrance to money (to what money really is) not some feature of it. Why do you think they want a cashless (that is, nothing physical regarding money, be it fiat-gold-silver) society now?

You are being herded toward something they can control.

boogerbently's picture

So,

Is shouldhavekilledthem, Fonestar ?

nmewn's picture

lol...no I don't think so and I don't want to be misunderstood.

BitCoin is a conduit for money. I have no problem with anyone using it short term, as in the case with Greece it was helpful but...its not "money". Simply..."money" doesn't rely on anything else to be money or used as money. So by definition with BitCoins reliance on "other things" to be useful as money, it itself cannot be money no more than an ATM can be money.

Exchange rates are another problem, which is why I say short term use, buyer or seller wants assurance that what they exchange for...stays relatively stable.

The seller is usually sure the chair he sells will hold its value more than a day. The buyer is confident the chair will to. However they are both taking a gamble the price in BitCoins stays basically the same or one of them made a bad trade because of the instability in the "value" of BitCoin.

Element's picture

Spot on nwewn.

If anything Bitcoin and similar is yet another knife in the guts for cash circulation, and most people do in fact need the convenience and portability of cash.

How many times am I going to use Bitcoin in transactions? Approximately almost never. Because buying stuff online can be quite regrettable.

crazytechnician's picture

Or leave it in the bank and watch it dissapear ?

Allocate 2% BTChezzz....

Roving reporter's picture

What is to stop the FED from typing a few zeros on a keyboard to buy and then dump bitcoins at technically critical times in bitcoins rise?  

Kaniption's picture

just move a decimal point, happens all the time"accidentally"

 

potato/potatoe

 

 

see! -accidentally doubled my post:)

Kaniption's picture

just move a decimal point, happens all the time"accidentally"

 

potato/potatoe

Bokkenrijder's picture

The big problem with these crypto currencies is that this will inevitably lead to more and more draconian and restrictive internet laws.

Lets Buy The Dip's picture

Good old shit coin yes! LOL

 GOLD CHART here LOOKS BLOODY HORRIBLE .   ==> http://bit.ly/1fMcakI    UH OH!!!

Everytime you hear people scream about the market crashing it does nothing, while gold is copping and absolute flogging! LOL. ouchies. 

Zero Point's picture

Wow, you got so shrill about it, ya turned gay. "Ouchies".

Pure Evil's picture

I would say he approached "Flaming Homo" but we'll let Caitlen decide.

Zero Point's picture

My Coinyes are now worthless. Thanks Kanye, you fuckin stooge.

knukles's picture

Bank of England announced that they're running short of Sovereigns.  Ummmh ummmmh ummmhhhhh

zhandax's picture

Shortage? Didn't Kate just print two new ones?

Waylon Bits's picture

SATOSHI OMG WE LOVE YOU!!!!!

RaceToTheBottom's picture

Satoshi is a salaryman for the NSA

Waylon Bits's picture

If they run out of sovereigns it might be time to pick up some Bitcoin today!  Don't delay BUH NOW!!

https://localbitcoins.com

Waylon Bits's picture

"My Coinyes are now worthless. Thanks Kanye, you fuckin stooge."

 

LOLOLOLOLOLOLOLOL....... teh coinye thing was the funniest shit ever!

shouldvekilledthem's picture

LTC is a lowly bitcoin clone. Its surge is due to very shallow markets and a handful of manipulators.

PaperWillBurn's picture

And people hedging their btc bets. A massive rush will cause a bottleneck in bitcoin transaction times. People will spill over to litecoin, albeit temporarily as it can carry 4x the amount of transactions. Until the btc blocksize grows litecoin will become a sought after substitue tp transact with. It's small market cap allows for a massive increase

TheHound73's picture

Litecoin can handle 4 times more transactions than Bitcoin. Bitcoin breaks if more than 5/1000th of 1% of the world uses it each day.  I will not invest any more into such a pathetic transaction system and will not recommend my acquantences buy into a toy.

crazytechnician's picture

First of all bitcoin does not break if it's overloaded , it simply rejects the the surplus transactions. Block size will soon be increased to 20MB , then 200MB and then 1 gigabyte , despite what you are saying. MAX_BLOCK_SIZE was not a function in the first implementation of bitcoin , it was added later to prevent graffiti and spam filling up the blockchain. It's a simple code modification , in fact one line , the majority of users now want this , and due to it being a consensus protocol that is what will happen. My nodes can already hande 20MB blocks , once the majority of nodes can do this there will be a smooth transition to larger and larger block sizes until it will be on par and eventually exceed VISA and MC combined. Why would miners and users not want bitcoin to scale up ? Anybody who does not realise this , in 1973 a 1MB hard drive cost $75k and used 3KW of electricity. Today you can buy a 4TB drive for 75 dollars, in a couple of years time you will be able to buy a 4 ExaByte Solid State drive for the same price. No way bitcoin blocks will stay at 1MB for very long , it would be like saying no you cannot have fibre optic broadband , you have to keep your 2600 baud modem. Pointless.

TheHound73's picture

The oligarchy in control of the reference code is not going to change.  Sorry for your loss.

crazytechnician's picture

Sorry for your ignorance. Your loss is my gain.

withglee's picture

No way bitcoin blocks will stay at 1MB for very long , it would be like saying no you cannot have fibre optic broadband , you have to keep your 2600 baud modem. Pointless.

You're working with a flawed premise borrowed from precious metals.

Money is "not" something difficult to obtain and thus valuable. Money "is" a "certified promise to complete a trade". It is created by traders. It is destroyed when traders deliver on their trading promises. In the interim time it exchanges as the most valued object of simple barter. That is its purpose. To enable simple barter over time and space.

Bitcoin and precious metals try to mimic money ... and fail miserably in a cesspool of corruption, manipulation, and gross misunderstanding and propaganda. And our dollars and euros fail due to purposeful mismanagement and self dealing.

crazytechnician's picture

20MB block size already implemented. 20MB will go live once >50% of nodes are upgraded.

Download from:

https://github.com/bitcoinxt/bitcoinxt/releases/

Ratio of 1MB to 20MB nodes can be seen here:

http://www.xtnodes.com/

 

GO BITCOIN !!!!!!!!!!!

 

Richard Chesler's picture

Suckers, chuckers?

Your money is safe with us... (spoken with jew bankster accent)