When fiat fragility shows its fecklessness, it appears people turn to the alternatives...
[8]
As Grexit fears loomed, Bitcoin transactions surged, as we noted here, [9] amid efforts to avoid capital controls. As Reuters reported, [10]
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."
* * *
Source: Goldman Sachs
