With the prospects of Greece leaving the European Monetary Union last most, could swapping the euro for bitcoins be a viable way to cure Greece's economic woes? Given the fixed supply of bitcoin - capped at 21m - the cryptocurrency is inherently deflationary, causing more headaches for the Greeks. But bitcoin, poised to become the global digital currency, will place competitive pressure on national governments to conduct more responsible fiscal and monetary policies going forward.
In some discussions about Greece exiting the euro, it has been suggested that Greece should swap the euro for bitcoin. At first glance, bitcoin may appear to be the cure. But if the euro is the problem, switching to Bitcoin would be like trying to cure a headache with a bullet to the brain. The main problem with the euro is that Greece cannot print more of it; only the European Central Bank can. But at least someone can. In theory, Greece could persuade the European Central Bank to print more euros for them. On the other hand, 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.