BitMex Founder: Grexit Will Not Spark Bitcoin Surge

Yessi Bello Perez
Jun 2, 2015 at 15:06 UTC
Updated Jun 30, 2015 at 14:46 UTC
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Bitcoin will not see a surge in Greece following this week’s debt payment decision, BitMEX’s founder has said.

The comment comes as the Greek government is due to make four payments to the International Monetary Fund (IMF) worth $1.8bn this month, with $3.3m due this Friday.

There are concerns that the country does not have the funds to pay and could potentially default on the debt, leading to its exit from the eurozone.

Speaking to CoinDesk, Arthur Hayes, co-founder of bitcoin derivatives exchange BitMEX, said:

“Greeks are rushing to send their euros outside the country to more stable banking systems. The rich Greeks go out a long time; the poor and the middle class are fighting just to survive. Bitcoin does not fit into the picture.”

This is a stark contrast to the Cypriot financial crisis of 2013, which saw bitcoin investments rocket following the country’s opt-in to a $13bn international bailout in exchange for the closure of the Cyprus Popular Bank.

‘Like a bullet to the brain’

Earlier this year, Wences Casares, co-founder of Xapo, penned a post on Techcrunch noting that bitcoin still failed to address the main issue for the country, adding:

“If the euro is the problem, switching to bitcoin would be like trying to cure a headache with a bullet to the brain.”

The entrepreneur continued to note the main problem was that Greece could not control the printing or issuing of euros, as this fell under the European Central Bank’s (ECB) control.

“If Greece were to switch to bitcoin, it would have no ability to control how much of their currency they could issue, and no one could be persuaded to issue more bitcoins,” added Casares.

Speculation with regards to Greece’s capacity to pay is mounting, but clarity is expected to surface on 5th June.

Greece flag image via Shutterstock.