This week, the global financial market is deeply impacted by the Greece’s debt crisis. Greece has shut down all banks within the country as well as Greek banks’ overseas branches. All bank related activities, such as withdrawing money, wire transfer, new debt/credit cards and more, have all been frozen until July 7th 2015.
The uncertainty of Greece’s future financial situation triggered the drop in almost all global markets, currency and stock markets. However, there is one exception. That is Bitcoin. This virtual currency increased roughly 2.76% on Monday with most web hits from Greek IP addresses. Bitcoin trades from Greece have increased 79% on Bitstamp, the world’s third-largest exchange. This is not something new. Back in 2013 when Cyprus closed its bank for 2 weeks to avoid bankruptcy, Bitcoin hit a record exchange value during that time. It was then that Bitcoin was viewed as one of the global hedging instruments, similar to US dollar or even gold.
Will Greece exit EU? Will Greece be able to sustain itself if it exits EU? Will Greece adopt Bitcoin as its official currency or will Greece return to its currency Drachma? How will the creditors of Greece react? These are all the questions remaining to be answered.
The chain reaction of Greece’s financial crisis is likely to impact the manufacturing industry globally in the near future. The uncertainty on finance outlooks may have an impact on demand for end products; thus, altering the demand of components. There is no certainty of the future financial situation in Greece, at this moment anything could happen. One advantage Advanced MP Technology (AMPT) has is our strong financial strength. We are able to offer our customers flexible credit terms, support them during any time of market fluctuations and assist them during unforeseeable inventory imbalances. Our strong global presence also allows us to continually monitor the supply chain of board level electronic components so that we can be a reliable source for our customers.