Is Bitcoin Bad for Greece?

Would switching from the euro to bitcoin be a bad move for Greece?

Techcrunch recently posed this question, and while the writer makes some valid arguments, it’s quite possible that the entire situation is not being looked at.

For one thing, the publication makes it plain and clear that the euro is, at this time, Greece’s currency of choice, and that the main problem with it is that Greece cannot print more euros in order to thwart deflation.  Only the European Central Bank has the power to do that.  The article then suggests that Greece should persuade the bank to print more euros for its people.

It seems that with a statement like this, the entire point of bitcoin is being missed.  This is clearly a situation that is being controlled by the bank in question; where the bank is being handed more power.  Bitcoin is meant to dissuade this practice and place more power into the people’s hands.  If there is indeed a lack of euros in Greece, then it’s probably safe to assume that the country bares its fair share of unbanked citizens, and bitcoin would likely fix that problem.  While it may be too much of a push to abandon the euro altogether in a country like Greece, dual usage of the euro and bitcoin simultaneously would likely add to the country’s economy and build up the financial plane of the people.  It’s true that if Greece were to switch to bitcoin completely the country would have no control over how many bitcoins are issued.  After all, it has been stated that no more than 21 million bitcoins will ever be in existence, but the only consequence one might see is if the euro was abandoned altogether, which is not only a poor idea, but unlikely.

Acceptance of both bitcoin and the euro appears to be the answer.  Abandoning one for the other would appear to have damaging consequences, but the institution of both the euro and the bitcoin together in Greek society is likely to aid in the financial stimulation of the country.

As the article states:

“Bitcoin is not a currency for a government; it is a global currency for the people… Bitcoin gives people everywhere an alternative.  Anyone with a smartphone can hold bitcoin as a refuge from a currency that is losing value.  This sends a message to their governments: ‘Let’s have our own currency, but manage it responsibly, because now we have a choice.’”

It is true.  Bitcoin is the currency of the people.  It gives more power to the people, and places more control in their hands just through the simple use of something like a smartphone.  If indeed people do have a choice as the article suggests, then it is unlikely they will choose to dismiss bitcoin altogether, but rather see to its integration alongside their own national currency as we have witnessed in areas such as the United States.  The U.S. has not abandoned the dollar.  It has merely paved a way for bitcoin to join the ranks.

While bitcoin is not likely (nor is it meant) to completely replace a country’s main form of currency, especially at this time, it is meant to provide advantages and benefits that a national currency cannot, and bitcoin can serve as a prominent “sidekick” in the financial arena.

Image Courtesy of Google Images