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Grexit fears may be taking a toll on stock and bond prices this month, but it has been a boon for virtual currency Bitcoin.

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Speculation indicates Greece will likely default and exit the eurozone, but this fact doesn’t seem to be worrying investors.





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The virtual currency has been steadily climbing this month as talks have broken down between Greece and its creditors. Invented six years ago as an alternative to fiat currencies, Bitcoin has now climbed nearly 10 per cent in the past few days. On Wednesday, the value of one bitcoin rose 1.54 per cent, or US$3.86, to US$254.76.

The main driver for bitcoin prices seem to be Greek buyers. Joshua Scigala, co-founder of Vaultoro.com, told Reuters this week that his company has seen a 124 per cent pick up in web hits from Greek IP addresses.

If Greece does exit the eurozone, it is unclear what currency the country would use, since it currently trades in euros. Another concern is the possibility that the Greek government could implement capital controls on the country’s banks soon. Many Greeks have been pulling out their savings, fearing the effects a default would have on Greece’s financial system.