The following was written by Students For Liberty Blog Team member, Elias Garcia

How would you react if you went to the ATM to withdraw money, only to find out that you reached the government mandated $50 limit for the day? Making matters worse, the government closed your bank and has made it illegal for you to move your life savings until future notice. Imagine, if you will, that your government is severely in debt and you could possibly lose your life savings if it fails to change its spending habits. Your money is frozen, your government is crazy, and there is practically nothing you can do. This is Greece, and the current debt crisis it faces shows why Bitcoin is a vital tool for people to protect their money.

This crisis has been terrifying for the people of Greece. Not only does their government continue to butt heads with its creditors, but a recent referendum declared by Prime Minister Tsipras risks the possibility of a ‘Grexit,’ a scenario wherein Greece would leave the European Union. Regardless of the results, however, the possibility of Greeks losing a substantial portion of their savings remains. Already rumors are spreading of a 30% ‘haircut’ of any savings account over 8,000 euros, something previously seen during Cyprus’ bailout. In the case of leaving the Euro, Greeks would see a huge devaluation of their savings, and any currency switch would exasperate Euro denominated debts any Greek may owe. From both the Left and Right, Greeks are in a serious pinch with their money.

Although the financial situation looks hopeless, the virtual crypto-currency, Bitcoin, can help wary Greeks save what money they can move. Unlike the Euro, Bitcoin has no central regulating authority. There is no way for banks to block someone out from their savings, no central bank to devalue its worth, and no government to snatch what is not rightfully theirs. It is for these reasons that regulators have continuously attempted to enact controls over Bitcoin. Luckily, to no avail. Bitcoin provides a vital outlet for financial freedom and safety, just when there seems to be none left for citizens in countries such as Greece.

This is not the first time Bitcoin has saved financial lives, however. In Argentina, a country rife with corruption and unsound money, people convert large portions of their savings into
more reliable mediums. Of those mediums, Bitcoin has become a popular choice. Unlike dollars, which require a large exchange premium, the price of Bitcoin is determined entirely by global market demand. No one person (or government) controls the ‘faucet’ of the Bitcoin supply, and because of Bitcoin’s globalized and digitized nature, global demand determines its true value.

By no means is Bitcoin a perfect money. If used poorly, a determined assailant can trace your activity online. If you do not use an online service for storage and unintentionally lose the hard drive storing your Bitcoins, you lose the money forever. But for all of its flaws, it provides an outlet for the high pressure situation found in Greece, and for all those prone to government and private theft alike. While Greece’s government continues to play with fire, Greeks have an option to save what they can from the flames.