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Will Bitcoin Bailout Greece Out of Crisis? Not Likely

The impending referendum on Sunday in Greek is expected to go against the government’s nod to accept the IMF terms for another row of austerity measures in lieu of a new bailout, spelling the term "EXIT" louder than ever.

While Athens is burning, there are proponents of Bitcoin, the cryptocurrency, who are betting high on its appreciation by four times in the next one week. Currently, Bitcoin is hovering around $240 and $260 but expectations are high that the Mediterranean crisis might jack up its price to more than $1,000, a record it reached last year after the Cyprus crisis.

The chances are that Bitcoin’s magic rise again coinciding with Greek’s exit from the Euro currency zone after the referendum. Bitcoin payment processor Bitpay founder Tony Gallippi tweeted on Sunday that the value may rise to $610 to $1250 once Greece exits Euro. While he did not state the reason, the speculation stands glaringly true in view of the post-Cyprus rise of Bitcoin last year.

Nathaniel Popper, an expert on Bitcoin and writer of the book "Digital Gold: the Untold Story of Bitcoin", however, differs. Brushing aside the dramatic rise again of Bitcoin, he told the Guardian’s Tech Weekly podcast that last year’s rise was due to gold rush from Silicon Valley and every time someone bought $1 million of bitcoin at a time, the price went up steeply.

While Bitcoin may surely dominate the post-exit Greece, its domination may still be thwarted by ban on exodus of money. If caught in the midst of Greek fall, Bitcoin will be put to test as an alternative currency but for those wary of Greek purchasing power, it may even spell a doomsday.

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