Trust in currency trumps control of currency

Trust in currency trumps control of currency

I was overseas during some of the climatic moments of the Greek debt crisis. My hotel in Brussels was actually a few hundred yards from the European Commission Building where we witnessed some of these sights:

Soldier on guard duty:
Soldier on guard
Authorities on standby before Greek referendum vote:
Authorities on standby

During this time there was a lot of discussion in social media about how Bitcoin could save Greece and how the citizens of Greece should abandon the Euro. The citizens of Greece were (and still are) under strict capital controls. I tweeted this:

The capital controls had already been enacted, so an en masse conversion from the Euro to BTC by Greek citizens was not going to happen overnight. Some asserted that BTC would have been adopted rapidly by Greeks if they had knowledge of the capital controls before they actually happened.

I disagree with this conclusion. I believe that Greeks would have withdrawn enough money from the banks to be able to weather oncoming capital controls and banking restrictions, but they would not have converted the Euros to BTC.

I believe this to be true because the Euro is a stable currency that people actually trust, unlike the Argentine peso. In other words, Greeks trust in the Euro more than they fear the control of Euro.