Best Bitcoin Card for Greece
Greece has been in an economic crisis for about a decade now: although the government is gradually regaining control of unemployment (last year the unemployment rate in Greece was 22.3 percent, well below the previous year’s level), many people are still unsettled by the experiences of recent years – especially when it comes to banks and assets, which the majority of the population in the rest of Europe is sceptical about. But now there is a new possibility for savers to invest their money: crypto currencies like Bitcoin are independent of banks, are currently experiencing a huge boom and could be a serious competitor to classic currencies in a few years’ time. Is Bitcoin the solution for Greek savers?
How do crypto currencies work?
The special thing about crypto currencies like Bitcoin, Neo or Ethereum is that they are completely digital and therefore cannot be bought in coin form. In order to make the currencies secure, cryptographic methods (the encryption of data) are used – and the price of a single Bitcoin depends exclusively on demand and supply, because the total number is limited. The good news for Greek investors: because of these facts, crypto currencies are not tied to central banks or states, so they cannot be taken away from their owners in the event of bank insolvency. It is therefore hardly surprising that investors in countries such as Greece are increasingly turning to digital currencies. And also in Germany websites like BitcoinMag, which offer information on crypto currencies, are becoming more and more popular. The price of digital currencies has also risen rapidly in recent years: After Bitcoin exceeded the 1,000 dollar mark for the first time in 2013, the current exchange rate is over 10,000 dollars. And an end to growth is not in sight.
Increased movement towards digital currencies
It is therefore no surprise that – in view of the renewed financial support for the country – the Greek government is also increasingly flirting with the digitalisation of the money market. The first step, the abolition of cash, could possibly take place in the coming years. The first measures have already come into force: Since 1 January 2017, Greek taxpayers have only been able to deduct payments from tax that have been paid electronically; all goods and services are affected. If today amounts are settled cashless, mainly with credit cards, the crypto currencies could soon take over this function. And under certain circumstances this development will take place more quickly than one might think, even without state aid – because Bitcoin is already a popular investment tool and can be used for payments on special websites on the Internet.
The economic crises of recent years have shaken the confidence of Greek investors in traditional means of payment. The solution could be crypto currencies such as Bitcoin, as these are digital, protected against misuse and not dependent on the banking system. The Greek government is already taking the first steps towards digitising payments in the country – and this movement could accelerate in the coming years. Greek investors take a positive view of this, as currencies like Bitcoin are a possible alternative to other investment methods and classic currencies.